Scenario: a $125/month electric bill. Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate
Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
A $125/month electricity bill in New York represents roughly 425 kWh per month at the state average rate of 29.38¢/kWh (EIA, Jan–Jul 2026 year-to-date). With 4.3 peak sun hours per day, offsetting that usage takes about a 4.0 kW solar system — roughly 10 panels at 400W — costing about $11,900 installed. Because the 30% federal tax credit ended for systems installed after 2025 and New York has full retail net metering, simple payback is about 9.1 years, with an estimated $32,600 net over 25 years.
How Many Solar Panels for a $125 Electric Bill in New York?
New York electricity rates and sun hours change the math versus the US average. The sizing formula:
System size (kW) = Annual kWh ÷ (Peak sun hours × 365 × 0.82)
For a $125/month bill in New York:
Annual usage: ~5,106 kWh/year
Peak sun hours: 4.3 h/day (New York)
System size:4.0 kW DC (~10 × 400W panels)
Metric
New York
US average
Rate
29.38¢/kWh
18.19¢/kWh
Sun hours
4.3 h/day
4.5 h/day
System size
4.0 kW
6.1 kW
Panels (400W)
10
16
New York requires a smaller system than the national average for the same dollar bill because higher rates reduce required kWh. Use our solar system size calculator with your ZIP code for a roof-specific result.
Run the numbers for your state
The savings calculator loads your state's average electricity rate, sun hours and net-metering rule. Then enter your own bill and installer quote.
Free · No signup · Runs in your browser
💰 System Cost
What Does Solar Cost for a $125/Month Bill in New York in 2026?
At about $3.00/W installed (a blended 2026 US price; marketplace quotes often run lower), a 4.0 kW system in New York costs about $11,900.
The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems installed after December 31, 2025, so a solar system you buy and install in 2026 gets no federal tax credit. Leases and PPAs are different: the installer that owns the system can still claim the commercial §48E credit for systems placed in service by the end of 2027 and may pass part of that value on through a lower monthly price.
Cost line
Amount
Installed cost (4.0 kW)
$11,900
Federal credit (25D) for 2026 installs
$0
Your cost before state/local incentives
$11,900
Getting three or more quotes matters more than ever without the federal credit: installed prices for the same system often differ by 20–30%.
📈 Payback Period
How Long Is Solar Payback on a $125 Bill in New York?
Simple payback divides installed cost by first-year bill savings. New York offers retail-rate net metering (Phase One NEM with a customer benefit contribution charge) for residential solar. We therefore assume solar offsets about 87% of a $125/month bill in New York — roughly $1,305/year — for a simple payback of about 9.1 years.
Over 25 years, with 3% annual rate increases and 0.5%/year panel degradation, cumulative bill savings minus the installed cost come to about $32,600. Full retail net metering means each kWh you produce is worth close to your retail rate. Model your own numbers in our solar payback calculator.
Solar vs utility company · 25-year comparison
25-year totals for a $125/month electric bill: 3%/yr rate increases, 0.5%/yr degradation, no federal credit. Methodology
New York Solar Incentives for a $125/Month Electric Bill
State and local incentives: New York’s Solar Energy System Equipment Credit covers 25% of system cost up to $5,000, NY-Sun offers upfront incentives by region, and solar is exempt from state sales tax.
Net metering: New York offers retail-rate net metering (Phase One NEM with a customer benefit contribution charge) for residential solar.
Check DSIRE and our New York solar page for current rebates, net metering rules, and utility-specific programs before signing an install contract.
⚡ System Size
New York vs US Average: $125/Month Bill Comparison
New York
US average
Monthly bill
$125
$125
System size
4.0 kW
6.1 kW
Installed cost
$11,900
$18,400
Bill offset assumed
87%
75% (blended)
Simple payback
9.1 yrs
16.3 yrs
25-year net savings
$32,600
$20,000
Bottom line: A $125/month bill in New York is a strong solar candidate with about 9.1-year payback in 2026. Calculate your New York savings or compare all states on the $125 bill hub.
Related calculators
Free tools for US homeowners — instant results, all 50 states.
At New York's average rate of 29.38¢/kWh and 4.3 peak sun hours, a $125/month bill (~5,106 kWh/year) typically requires a 4.0 kW system — about 10 panels at 400W each. Use our solar system size calculator with your ZIP for a roof-specific estimate.
A 4.0 kW system in New York costs roughly $11,900 installed at about $3.00 per watt. The 30% federal tax credit (25D) ended for systems installed after December 31, 2025, so there is no federal credit for a system you buy in 2026. New York's Solar Energy System Equipment Credit covers 25% of system cost up to $5,000, NY-Sun offers upfront incentives by region, and solar is exempt from state sales tax.
At $11,900 installed and ~$1,305/year in bill savings, simple payback in New York is about 9.1 years. New York offers retail-rate net metering (Phase One NEM with a customer benefit contribution charge) for residential solar.
With about 9.1-year payback and roughly $32,600 in estimated 25-year net savings, a $125/month bill in New York is a strong case for buying solar in 2026. See the [New York solar page](/states/ny/) for net metering and incentive details.
The US average needs a 6.1 kW system at 16.3-year payback. New York needs 4.0 kW with 9.1-year payback — driven by New York's 29.38¢/kWh rate and 4.3 daily sun hours.
29.38¢/kWh — New York average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.3 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
Full retail net metering — solar assumed to offset 87% of the bill. New York offers retail-rate net metering (Phase One NEM with a customer benefit contribution charge) for residential solar.
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.