New York State might not be the first place that comes to mind when you think of solar energy, but it is soon to be one of the hotspots for solar electricity production in the whole of the United States. Indeed, thanks to the Empire State’s ambitious new Renewables Portfolio standard, and a variety of additional initiatives aimed to lessen the cost of installing photovoltaic (PV) energy, New Yorkers now have access to cheap and readily available solar energy.
By having a solar power system in your home, you can ensure minimal initial costs and steady savings for decades to come. Keep reading to learn about the available solar incentives in New York to help make solar panels more affordable and worth it.
The Best Solar Incentives, Tax Credits, & Rebates in New York
There are several public and private incentives in New York that help you save on your purchase of solar panels in New York:
| Incentive | Summary | End Date |
| Federal Solar Tax Credit (ITC) | New York residents can take advantage of the Federal Solar Tax Credit and get a discount of 30% applied to their tax returns. Read More | December 31st, 2032 |
| New York State Solar Tax Credit | This tax credit is equal to 25 percent of total installation costs, up to $5,000, and can be used alongside the federal solar tax credit. In total, the two incentives can reduce the cost of purchasing a solar energy system by more than half after the first year. Read More | None |
| Home Solar Project State Sales Tax Exemption | New York residents can access a 4% home solar system sales tax exemption. | None |
| Net Metering | Net metering allows homeowners that create excess energy to use it as a credit on their next electric bill. All energy providers are required to offer this option to homeowners. | None |
| NY-Sun Megawatt (MW) Block Program | The NY-Sun initiative provides up to $1,000 for every kilowatt (kW) of solar power purchased and installed. Read More | None |
| Solar Electric Generating System Tax Abatement (SEGS) | New York has created a property tax exemption on the added value to your home that comes with installing a solar energy system. Read More | None |
| USDA REAP GRANT | REAP assists agricultural producers and rural small businesses reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligibility for the REAP program depends on you being an agricultural producer, with at least 50 percent of your gross income coming from agricultural operations and small businesses in eligible rural areas. | None |
| New York State Commercial Financing Options | Commercial business owners in New York can access a range of financing options when they purchase a solar energy system. | None |
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a 30% federal tax credit available for home solar systems purchased and installed by the end of 2032, thanks to the recent passage of the Inflation Reduction Act. This is a significant chunk of money taken off their personal income taxes. Plus, the ITC has done a great job expanding the country’s solar industry. It has helped create hundreds of thousands of jobs while bringing billions of dollars into the economy since being enacted in 2006.
New York State Solar Tax Credit
This tax credit is equal to 25 percent of total installation costs, up to $5,000, and can be used alongside the federal solar tax credit. In total, the two incentives can reduce the cost of purchasing a solar energy system by more than half after the first year.
New York Net Metering
Electricity companies in New York have all adopted net energy metering, which is a policy that ensures your solar panels will be connected to the public-utility power grid, and that surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid as a result of net metering.
The minimum amount of compensation that you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, it remains hugely beneficial for owners of solar energy systems.
Home Solar Project State Sales Tax Exemption
New York residents can access a 4% home solar system sales tax exemption.
NY-Sun Megawatt (MW) Block Program
Eligible New York homeowners can get up to $1,000 for every kilowatt (kW) of solar power they purchase and install on their properties. The incentive is divided into different regions, and the rate of the incentive will depend on the region in which you are located.
Solar Electric Generating System Tax Abatement (SEGS)
New York will exempt property taxes on the added value to your home that comes with installing a solar energy system.
Commercial New York Solar Incentives
Solar Incentives for Nonprofits and Businesses in New York
There are many financing options available to business owners in New York State. For example, you can access the Small Business/Not-For-Profit On-Bill Recovery Loan, the Small Commercial Participation Loan, and the Commercial/Industrial-Energy Improvement Corporation (EIC) loan. For more information, check out this website.
USDA REAP Grant
The United States Department of Agriculture (USDA) has launched a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses lower their energy costs and consumption by financing loans and grant funding to purchase and install renewable energy systems.
You are eligible to participate in the REAP program if you are an agricultural producer with at least 50 percent of your gross income coming from agricultural operations or a small business in eligible rural areas.
Why Go Solar in New York?
With 224 sunny days per year, New York is far from the sunniest state in the Union. However, the national average is only 205 days of sun per year, which places New York in the top half of the states when it comes to suitable climates for solar energy production.
Even with less sun than states like California and Arizona, New York is still a great place for solar panels thanks to the development of new solar technology that has greatly increased the efficiency and effectiveness of photovoltaic cells.
New York’s Renewable Portfolio Standard (RPS), which was established in 2004, required utilities to supply 25 percent of their electricity sales from renewable energy by 2013. In 2016, the new RPS came into effect, mandating 50 percent of electricity to be sourced by renewables by 2030. As a result of these mandates, New York has dramatically reduced its carbon emissions and created a far more conducive environment for solar energy production.
For example, the growth of solar energy production has created the existing availability of local solar providers throughout the state. These providers offer customers the opportunity to entertain a variety of competing quotes while ensuring that they receive the best quality service and equipment.
Finally, solar panels can dramatically increase your home’s value. According to Zillow, the average home experiences a 4.1% increase in its value after the addition of a solar power system. Homes in New York City (NYC) actually increase by 5.1%, making it even more worthwhile to install solar panels. Overall, in the state of New York, the average home value increase from solar panels will be close to $23,989.
New York Solar Cost
The average total cost of solar installations in New York ranges from $13,345 to $18,055. On a cost-per-watt basis, solar panel installation in New York ranges from $2.67 to $3.41. These costs have come down significantly in recent years. Obviously, if you purchase a larger system (more watts), your cost will increase in addition to your energy production. With energy bills increasing amid high oil and gas prices, the relative cost of solar is bound to decline further.
How Much Can You Save on Solar in New York?
Despite the upfront cost of purchasing and installing, you can save lots of money with your solar system per year, thanks to the electricity your system produces. The mechanism behind the savings works like this: when solar panels produce electricity for your home, they reduce the amount of energy that you pull from the grid, thus lowering your utility bills.
People living in New York save thousands of dollars per year on electricity bills after paying off the cost of their initial purchase. With a payback period of 3.2 to 3.9 years, you find yourself saving thousands of dollars per year in almost half a decade. Over the 20 to 25-year lifetime of your photovoltaic (PV) equipment, you will experience net savings between $61,533 and $75,207. With these kinds of savings, why wouldn’t you get in on the solar energy market?
Key Takeaways: The Best New York Solar Incentives
The Empire State has some of the best incentives in the world to help you get started on your solar energy project. With a relatively suitable amount of sun and cheap and easy access to solar panels and equipment, why wouldn’t you invest right now? Plus, with variable energy prices around the world and climbing utility bills at home, now is a great time to protect the price of your energy consumption for years to come.
If you are interested in purchasing, below our a few of our recommended top-rated solar companies in New York that will help get you set up.
FAQs about New York Solar Incentives
Is solar worth it in New York?
New York is an excellent place to buy solar energy systems, and we highly recommend doing so before energy prices go even higher! Solar can save you tons of money on your utility bills and help reduce your production of emissions and your carbon footprint. Plus, a variety of federal, state, and local financial incentives are available in New York to make the purchase of solar panels accessible to anyone!
How much will my electricity bill go down with solar in New York?
People living in New York save thousands of dollars per year on electricity bills after paying off the cost of their initial purchase. With a payback period of 3.2 to 3.9 years, you find yourself saving thousands of dollars per year in almost half a decade. Over the 20 to 25-year lifetime of your photovoltaic (PV) equipment, you will experience net savings between $61,533 and $75,207. With these kinds of savings, why wouldn’t you get in on the solar energy market?
How much does it cost for solar panels in New York?
The average total cost of solar installations in New York ranges from $13,345 to $18,055. On a cost-per-watt basis, solar panel installation in New York ranges from $2.67 to $3.41. These costs have come down significantly in recent years. Obviously, if you purchase a larger system (more watts), your cost will increase in addition to your energy production. With energy bills increasing amid high oil and gas prices, the relative cost of solar is bound to decline further.
Can you get solar panels for free in New York?
While you probably won’t find ‘free’ solar panels in New York, residents of New York are lucky to have the support of numerous federal, state, and local financial incentives that will help to minimize the costs associated with purchasing a new solar energy system.
What solar rebates are available in New York?
There are many federal, state, and local financial incentives for purchasers of solar energy systems in New York. These include the federal government’s Solar Investment Tax Credit (ITC), the New York State Tax Credit, and many local and private incentives.
How many homes in New York have solar panels?
There is enough solar installed in New York to power over 593,699 homes, and solar accounts for 3.28% of the state’s electricity production.
Do solar panels increase property taxes in New York?
No, your taxes won’t increase. New York will exempt property taxes on the added value to your home that comes with installing a solar energy system. This is another excellent reason to invest in solar!
How much can you write off for solar panels on taxes in New York?
New York taxpayers can choose to write off lots of the system costs associated with the purchase of new solar panels. For more information about incentive programs, check out the New York government’s website.
