New York Solar Panels | 2022 Cost & Incentives | SaveOnEnergy

New York Solar Panels: Pricing and Incentives

How much do solar panels cost in New York?

home with solar panels on the roof

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Solar power in New York

You might be surprised that New York is one of the leading states in the nation for solar energy generation. Like many states, it has invested heavily in solar power, especially in making it more affordable for the state’s residents.

If you live in New York, you could save money and reduce your environmental footprint by installing solar panels on your home. Keep reading to learn the costs and benefits of solar panels and how to decide if they’re right for your home.

New York solar panel cost

Solar panels are priced per watt, and the average cost of solar panels in New York is between $3 and $5 per watt. For the typical 5 kWh system, you could expect to pay between $15,000 and $25,000 for your residential solar panel system before any tax credits and rebates. The exact price you’ll pay depends on the size of your system, the type of solar panels you choose, your installation costs, and more.

Luckily, there are plenty of financial benefits to installing solar panels on your home. Tax credits can help you save money on your purchase, and the money you’ll save on energy means you can expect to break even on your solar panels within six to nine years.

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Not eligible for rooftop? Check your availability with community solar.

New York solar panel incentives or rebates

There’s no doubt that solar panels are a large investment, but the federal government and many state and local governments have financial incentives in place to help reduce the cost burden for homeowners.

First, the federal government offers a solar tax credit that allows you to save 26% on your solar panel purchase. Keep in mind that the tax credit will be reduced to 22% in 2023 and will disappear in 2024 if Congress doesn’t renew it. You may want to invest in your solar panels sooner rather than later to gain the most benefit from the federal tax credit. 

New York also has a state tax credit, which allows you to save another 25% — up to $5,000 — on your solar panel purchase. The state also has a net metering program, which allows you to sell your excess energy back to the grid for credits on future electricity bills.

Why choose New York solar power?

There are plenty of benefits to choosing solar power in New York, including reducing your energy costs, establishing energy independence, or helping the environment.

Lower energy costs 

One of the greatest benefits of installing solar panels on your home is the money you can save on your energy bill. When your home is running on solar energy, you’re paying less to use electricity from the traditional grid. Solar panels also increase the value of your home, which is money in your pocket if you decide to sell.

Establish energy independence 

Installing solar panels on your home can help you establish energy independence, meaning you’re not reliant on the traditional electricity grid to power your home. If you have a solar battery, you can store excess energy produced by your solar panels. This will allow you to remain powered if the traditional grid goes down. 

Go green

Traditional electricity generation emits greenhouse gasses like carbon dioxide into the atmosphere. However, solar power is a form of green energy, meaning it’s a renewable resource.

Should I buy or lease my solar panels?

When you decide to install solar panels on your home, you’ll have the choice to either buy or lease your panels. While both options have some benefits, buying your panels offers the best financial payoff in the long run.

Buying your own solar panels results in the greatest long-term energy savings, and also allows you to take advantage of the state and federal tax credit, which isn’t available when you lease or enter a PPA. Additionally, purchasing solar panels can increase your home’s resale value by $15,000.

While leasing solar panels isn’t the most cost-effective option, it can still be the right choice for some people. Solar panel leases require a lower upfront cost, making them more affordable. It’s also a great option for those who rent their homes and can’t make permanent changes.

Buying and leasing solar panels aren’t the only options, though. Community solar systems allow residents to enjoy the perks of solar power without making the upfront investment themselves. In fact, New York has invested heavily in community solar over the past several years, making it easily accessible.

New York solar panel companies

New York residents have plenty of options to choose from for solar energy services. The good news is that it makes it easy for you to find a company that meets your needs. Before choosing a solar provider, be sure to review our solar power resources to learn more about solar energy. The more research you do upfront, the more comfortable you’ll feel when it’s finally time to choose your solar panel installer.

The history of solar power in New York

Solar power in New York dates back to the late 1970s when the state passed its solar property tax exemption, which meant homeowners didn’t have to pay additional property taxes for the increase in the value of their homes due to solar panels. It was among the first of states to create a financial incentive for homeowners. In the following years, the state passed its solar easements and rights laws, its solar income tax credit, its net metering policy, and many more.

Today, New York ranks 11th in the nation for solar energy generation. About 3% of the state’s electricity comes from solar energy, which is enough to power more than 560,000 homes. Over the past decade, New York has seen an increase in all sorts of solar installations, but community solar installations have been especially prevalent.

Important solar installation factors to consider

Solar panels can be an excellent investment, but they may not be right for everyone. Here are a few things to consider before installing solar panels on your home:

  1. According to the Department of Energy, solar panels are most effective on south-facing roofs with slopes between 15 and 40 degrees. They are also best for roofs in good condition that won’t need to be replaced soon.
  2. Solar panels are only worth the investment if they actually produce energy to replace at least some of your traditional electricity use. Consider the local weather patterns, as well as if there’s anything obstructing the sun from shining on your home.
  3. If you have a homeowners association, you may be subject to additional restrictions for your solar panels. Some HOAs may restrict the size of solar panels, require approval before you install them, or even prohibit them altogether.

Solar power FAQs

How much would solar cost in New York? Expand / Collapse Toggle

The average cost of solar panels in New York is between $15,000 and $25,000. Keep in mind that your costs will depend on the size of your system, the solar panels you choose, your installation costs, and more.

Is solar power a good investment in New York? Expand / Collapse Toggle

Solar power can be an excellent investment, but it’s important to consider your situation. Your location, weather patterns, and energy usage habits will all be important factors in deciding if solar power is right for you.

How much could I save by investing in solar? Expand / Collapse Toggle

The amount you can save by investing in solar depends on the amount of energy your solar panels generate and your energy usage habits. New York residents pay an average electricity bill of $124, meaning you could save up to about $1,028 per year.

Where can I find a good solar panel installer in New York? Expand / Collapse Toggle

There are several great solar installers to choose from in New York, meaning you’ll have an easy time finding one that meets your needs. You can start by entering your information on this screen, then we’ll match you with a top solar installer near you.

How does solar power help the environment? Expand / Collapse Toggle

Unlike traditional electricity generation, solar energy doesn’t emit carbon dioxide that contributes to climate change. Switching to a green energy source like solar allows you to power your home with a smaller carbon footprint.