US residential solar · 2026 data

Solar Panels in New York (2026): Cost, State Tax Credit, and Payback After the Federal Credit Ended

Q: How much do solar panels cost in New York after incentives in 2026?

The New York average is about $2.76 per watt, so an 8 kW system costs roughly $22,100 before incentives. New York's 25% state tax credit is capped at $5,000, which brings the example net cost to about $17,100. Income-eligible households (at or below 80% of area median income) may also qualify for NY-Sun's $0.80-per-watt Affordable Solar Residential Incentive, which can lower the cost further.

Q: What is the solar payback period in New York?

For the example 8 kW system, the modeled payback is about 7 years. That assumes roughly 9,000 kWh of annual output, an electricity value near 28 cents per kWh, 0.5% annual panel degradation, no rate increases, and a $17,100 net cost. Your result will vary with roof orientation, shading, utility, financing, and how much of your state tax credit you can use.

Q: Does New York still offer net metering for solar in 2026?

Yes. New York net metering applies to residential solar systems up to 25 kW. Excess generation earns bill credits, and some customers pay a small monthly Customer Benefit Contribution. Compensation rules can differ by utility and by tariff (net metering versus the Value Stack), so confirm which applies to your interconnection with your installer and utility.

Q: Is the New York State solar tax credit worth 25% of system cost?

Yes, with a cap. New York allows a credit of 25% of qualified solar equipment costs, up to $5,000, claimed on Form IT-255. You need state income tax liability to use it, and unused credit can generally be carried forward for up to five years. Confirm eligibility with the NY Department of Taxation and Finance or a tax professional.

Est. net savings

$41,800

Over 25 Years (example 8 kW system) · no federal credit

$17,100 Net cost after NY credit

7 yrs Modeled payback

8.0 kW Example system

Typical result:

8 kW example system
$22,100 gross cost
$17,100 after NY state credit
~7 year modeled payback

✓ EIA rates & NREL sun data ✓ 2026 federal policy applied ✓ Open methodology

Updated October 4, 2026 · 6 min read ·By Green Energy Calculators Editorial Team

Calculate My Savings View New York Data

25 years without solar vs with solar

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

Without solar

25-year utility bills

$58,900

Rates rise ~3% per year

With solar

System cost + remaining bills

$17,100

Installed cost, no federal credit

Difference

Estimated 25-year net

+$41,800

Before any state or utility incentives

Author Green Energy Calculators Editorial Team

Editorial policy No paid placements

Last updated Oct 4, 2026

Data approach EIA rates · NREL sun hours · 2026 federal policy · methodology

Quick answer: In 2026, a typical 8 kW solar system in New York costs about $22,100 before incentives. The federal 30% homeowner credit ended for installations completed after December 31, 2025, but New York’s 25% state tax credit (up to $5,000) still applies, bringing the example net cost to about $17,100. At New York’s high electricity prices, modeled payback is roughly 7 years.

New York remains one of the stronger solar markets in the country, mainly because power here is expensive. In April 2026, the average residential price in the state was about 29.5 cents per kWh, roughly 56% above the national average, according to U.S. Energy Information Administration (EIA) data compiled by the Empire Center. The big change for 2026 buyers is the loss of the federal homeowner credit, so this guide models costs using only incentives that still exist.

How Much Do Solar Panels Cost in New York in 2026?

EnergySage reports a New York average of roughly $2.76 per watt in mid-2026. At that rate:

System size	Approx. gross cost	After NY credit (25%, max $5,000)
6 kW	$16,600	$12,600
8 kW	$22,100	$17,100
10 kW	$27,600	$22,600

Estimates at $2.76/W. Actual quotes vary by installer, roof, equipment, and location. New York City jobs often cost more because of access and labor.

Example 8 kW system: $22,080 gross, $17,080 net after the NY state credit (2026). The 25% credit would be $5,520 but is capped at $5,000. No federal credit applies to 2026 installs. Source: EnergySage NY average of $2.76/W (mid-2026); NY State Dept. of Taxation and Finance.

Chart summary: An 8 kW system at the New York average price costs about $22,080. The state credit would be 25% ($5,520), but it is capped at $5,000, leaving a net cost near $17,080. There is no federal credit in this example because 2026 installations no longer qualify.

Use the solar system size calculator to size a system to your usage before you request quotes. Home batteries add cost, and New York has no statewide residential battery incentive, while the federal battery credit also ended with 25D.

Which Solar Incentives Are Still Available in New York?

New York State solar tax credit. You can claim 25% of qualified solar equipment costs, up to $5,000, on Form IT-255. It is non-refundable, so you need state tax liability, and unused amounts can generally carry forward up to five years.

NY-Sun rebate (NYSERDA). The standard per-watt residential blocks have closed: Con Edison’s on May 29, 2025, and Upstate’s in December 2025. The remaining residential option is the Affordable Solar Residential Incentive at $0.80 per watt for households at or below 80% of area median income. Check NYSERDA’s dashboards for current status, since program terms change.

Property tax exemption. New York exempts the added value from solar from property tax for up to 15 years, but local governments can opt out, so confirm with your assessor.

Sales tax. Residential solar equipment is exempt from New York State sales tax. Confirm local treatment with your installer.

Federal credit. The 30% credit (Section 25D) does not apply to systems completed after December 31, 2025. It can still be carried forward by homeowners who installed by that date. Use the solar tax credit calculator to check your state credit.

How Much Can You Save, and How Long Is Payback?

Savings depend on output, your utility rate, and your net metering terms. This guide uses a transparent example:

8 kW system producing about 9,000 kWh per year (a conservative estimate for New York; run NREL’s PVWatts for your address)
Electricity valued at about 28 cents per kWh (slightly below the state average, to allow for fixed charges)
$2,500 first-year savings, 0.5% annual degradation, and no rate increases
Net cost of $17,080 after the state credit

Modeled cumulative net position, example 8 kW NY system: break-even in year 7, about $41,810 by year 25. Assumes $2,500 year-1 savings (9,000 kWh x about 28 cents), 0.5% annual degradation, 0% electricity rate escalation, $17,080 net cost, and no federal credit. Source: editorial model using EIA and NYSERDA-area pricing.

Chart summary: Under these assumptions the system breaks even in about year 7 and reaches roughly $41,800 in cumulative net savings by year 25. Higher future electricity prices would improve this; shading, a weaker roof orientation, or financing costs would reduce it.

New York paid 29.45 cents/kWh in April 2026, 56% above the 18.83-cent U.S. average. Residential average price, cents per kWh. Source: U.S. EIA data via the Empire Center Energy Data Bulletin.

Chart summary: New York’s April 2026 residential price (29.45 cents) was about 56% above the U.S. average (18.83 cents) and well above Florida and Texas. That higher price is why solar can pay back quickly in New York even with fewer sun hours than the Sun Belt.

Net metering. In New York, net metering applies to residential systems up to 25 kW, with surplus generation credited to your bill. Some customers pay a small monthly Customer Benefit Contribution, and some interconnections use the Value Stack tariff instead. Model your usage with the solar net metering calculator.

Buy, Finance, or Lease Solar in New York?

Cash purchase. You own the system, claim the state credit, and capture all bill savings. This gives the highest long-term return if you plan to stay in the home.

Solar loan. You still own the system and can claim the state credit. Compare the loan’s APR, fees, and term against the savings; the solar loan calculator shows break-even under different rates.

Lease or PPA. You pay little or nothing upfront, but the provider owns the system, so you cannot claim New York’s credit. Third-party owners may still claim federal business credits under current law, and some pass savings through in pricing. Compare the effective cost per kWh, any annual escalator, and transfer terms if you sell the home.

On resale value, a 2015 Lawrence Berkeley National Laboratory study found owned solar homes sold at a premium of roughly $4 per watt nationally. That study is dated and local results vary, so treat it as directional.

Is Solar Still Worth It in New York After the Federal Credit Ended?

For many owners, yes, because the economics rest mostly on New York’s high electricity prices rather than on the federal credit. The numbers get weaker if your roof is shaded, you have little state tax liability to absorb the credit, or you plan to move within a few years. Standard NY-Sun rebates have also closed, so early quotes that assume a rebate you cannot get are a red flag.

Before signing, get at least three quotes, ask for the assumed production (kWh/year), price per watt, and each incentive in writing, and run your own numbers with the solar savings calculator.

Sources: U.S. EIA via Empire Center Energy Data Bulletin (April 2026); EnergySage New York solar guide (2026); NYSERDA NY-Sun dashboards; NY State Department of Taxation and Finance; SEIA analysis of the One Big Beautiful Bill Act; Lawrence Berkeley National Laboratory (2015). This article is educational and not tax or financial advice.

Frequently asked questions

Direct answers for US homeowners in New York.

Is there a federal solar tax credit in 2026?

Not for most homeowners. The 30% residential clean energy credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. If your system was completed by that date, you can still claim it and carry forward unused credit. Companies that own leased or PPA systems may still claim a separate business credit (Section 48E), but whether savings are passed to you depends on your contract.

How much do solar panels cost in New York after incentives in 2026?

What is the solar payback period in New York?

Does New York still offer net metering for solar in 2026?

Is the New York State solar tax credit worth 25% of system cost?

Popular state solar guides

Electricity rates and incentives vary — see data for your state.

CA California 33.25¢/kWh · 5.8h sun TX Texas 16.06¢/kWh · 5.6h sun FL Florida 15.3¢/kWh · 5.7h sun AZ Arizona 15.44¢/kWh · 6.5h sun NC North Carolina 14.94¢/kWh · 5.2h sun NY New York 29.38¢/kWh · 4.3h sun MA Massachusetts 30.14¢/kWh · 4.2h sun CO Colorado 16.72¢/kWh · 5.5h sun

View all 50 states →

How these numbers were calculated

Electricity rate: 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.
Model: Version 2026.10 · 3%/yr electricity price escalation · 0.5%/yr panel degradation · simple payback = installed cost ÷ year-1 savings
Policy checked: September 29, 2026 · Full methodology · Report an error

Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.

25 years without solar vs with solar

How Much Do Solar Panels Cost in New York in 2026?

Which Solar Incentives Are Still Available in New York?

How Much Can You Save, and How Long Is Payback?

Buy, Finance, or Lease Solar in New York?

Is Solar Still Worth It in New York After the Federal Credit Ended?

Related calculators

Frequently asked questions

Related guides

How Many Solar Panels for a $150 Electric Bill in New York? (2026)

How Many Solar Panels for a 2,000 sq ft House in New York? (2026)

Net Metering by State 2026: Rules, Credits & Changes

How Much Do Solar Panels Cost in 2026? (Prices & Payback)

Popular state solar guides

How these numbers were calculated