Average Solar Panel Cost in New York 2026
New York solar costs, incentives, and savings in 2026. NY-Sun incentives and high electricity rates make New York one of the best states for solar ROI.
New York Solar Costs in 2026
New York has some of the highest electricity rates in the continental US ($0.22–$0.28/kWh), which makes solar savings exceptionally strong. The average cost of a residential solar system in New York is $3.00–$3.50 per watt — slightly above the national average due to higher labor costs. A 6 kW system costs $18,000–$21,000 before incentives. With the NY-Sun state incentive, net costs can drop further. Note: The 30% federal residential solar tax credit expired December 31, 2025.
| System Size | Before Incentives | After NY-Sun Rebate | Annual Savings Est. |
|---|---|---|---|
| 4 kW | $12,000–$14,000 | $8,000–$10,000 | $900–$1,300 |
| 6 kW | $18,000–$21,000 | $13,000–$16,000 | $1,400–$2,000 |
| 8 kW | $24,000–$28,000 | $19,000–$23,000 | $1,800–$2,600 |
| 10 kW | $30,000–$35,000 | $25,000–$30,000 | $2,200–$3,200 |
New York Solar Incentives
New York offers the most generous state solar incentive package in the country.
- Federal ITC (Section 25D): Expired December 31, 2025 — no longer available to residential homeowners in 2026.
- NY-Sun Incentive: Up to $1,000 per kW (capped at $5,000 for most residential systems) — a direct rebate paid to your installer and reflected in your final price.
- NY State Tax Credit: 25% of system cost (up to $5,000) as a state income tax credit.
- Property Tax Exemption: New York exempts solar from property tax increases for 15 years.
- Sales Tax Exemption: Solar equipment is exempt from New York sales tax.
- Net Metering: Full retail-rate net metering available statewide.
Frequently Asked Questions
What is the NY-Sun incentive?
NY-Sun is a state program offering up to $1,000/kW in rebates for residential solar installations. The rebate is paid directly to your installer and reduces your upfront cost. Availability varies by region and installer.
Is solar worth it in New York despite less sun?
Yes — New York's high electricity rates more than compensate for less sun compared to southern states. New York homeowners typically see payback in 6–8 years due to high utility savings.
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