2026 · No Federal Tax Credit · NREL + EIA Data
Solar Panels in New York: Cost, Payback & ROI (2026)
Is solar still worth it in New York after the 30% federal tax credit expired? These pre-computed estimates use NREL PVWatts production data and current 22.5¢/kWh New York electricity rates for a typical home using 900 kWh/month.
Section 25D (30% federal solar tax credit) expired December 31, 2025
All numbers below reflect 2026 math with no federal residential credit. State incentives, where applicable, are noted in the section below.
New York Solar at a Glance
Based on a 900 kWh/month home ($203/mo electric bill at 22.5¢/kWh), 100% offset, no state rebate applied.
9.0 kW
For 900 kWh/month home
$26,550
At $2.95/W (LBNL 2024 avg)
10.0 years
Without state rebate
$2,430
Estimated annual savings
$77,710
Cumulative before rebate
$51,160
Savings minus system cost
22.5¢/kWh
very high vs. 16.0¢ U.S. avg · EIA 2025
1,200 kWh/kW/yr
limited · 3.7 peak sun hrs/day · NREL PVWatts
Is Solar Worth It in New York in 2026?
New York's 22.5¢/kWh average rate is driven higher in NYC, Long Island, and Westchester, where payback periods can be under 8 years. The NY-Sun program has invested over $1 billion in residential and commercial solar, providing upfront incentives that reduce installed cost. Homeowners in Con Edison or PSEG Long Island territory tend to see the strongest economics.
For a typical New York home consuming 900 kWh per month, our calculation shows a 9.0 kW system needed for 100% offset. At the current national average installed cost of $2.95/W (LBNL Tracking the Sun 2024), that's $26,550 gross before any state rebates. Year-one savings of $2,430 grow each year as electricity rates escalate — the model assumes 2.5%/year (EIA AEO 2024).
The 10.0 years payback period is solid — at or below the national average of 8–12 years. Over 25 years — the standard warranty period for most premium panels — a New York homeowner following this profile would save an estimated $77,710 total, for a net benefit of $51,160 after recovering the system cost.
Year-by-Year Savings Snapshot: First 10 Years
Based on 9.0 kW system, 0.5%/yr degradation, 2.5%/yr rate escalation, no state rebate.
| Year | Production (kWh) | Annual Savings | Cumulative |
|---|---|---|---|
| Year 1 | 10,800 | $2,430 | $2,430 |
| Year 2 | 10,746 | $2,478 | $4,908 |
| Year 3 | 10,692 | $2,528 | $7,436 |
| Year 4 | 10,639 | $2,578 | $10,014 |
| Year 5 | 10,586 | $2,629 | $12,643 |
| Year 6 | 10,533 | $2,681 | $15,324 |
| Year 7 | 10,480 | $2,735 | $18,058 |
| Year 8 | 10,428 | $2,789 | $20,847 |
| Year 9 | 10,375 | $2,844 | $23,692 |
| Year 10✓ Paid off | 10,324 | $2,901 | $26,593 |
System cost to recover: $26,550. Table shows savings without state rebate applied. Use the interactive calculator to enter your actual bill and any rebate.
Solar Incentives in New York (2026)
NY-Sun incentives are distributed through certified installers and vary by utility territory and installation type. NYSERDA coordinates the program and maintains a waitlist for areas where blocks are temporarily full.
- NY-Sun upfront incentives (up to $1/W for residential systems)
- NY state income tax credit (25%, up to $5,000)
- Property tax exemption on solar added value (15 years)
- Sales tax exemption on solar equipment
Incentive programs change frequently. Verify current offerings at dsireusa.org or directly with your utility before making any purchasing decision.
How We Calculate New York Solar ROI
These estimates use the same methodology as our interactive solar ROI calculator, applied to New York-specific data:
System cost
$2.95/W installed
LBNL Tracking the Sun 2024
Solar production
1,200 kWh/kW/yr
NREL PVWatts v8
Electricity rate
22.5¢/kWh
EIA Residential Rates 2025
Rate escalation
2.5%/year
EIA Annual Energy Outlook 2024
Panel degradation
0.5%/year
NREL (Jordan & Kurtz, median)
System lifetime
25 years
Standard warranty period
No Section 25D (federal residential solar credit) is included — it expired December 31, 2025. State incentives are not reflected in these pre-computed figures; use the interactive calculator to enter specific rebate amounts.
Calculate With Your Actual Numbers
The figures above use statewide averages. Enter your actual monthly bill, any New York rebate amounts, and your offset target in our interactive calculator for a personalized estimate.
Frequently Asked Questions — Solar in New York
Compare Other States
Estimates are based on NREL PVWatts v8 production data, EIA 2025 electricity rates, and LBNL 2024 installed cost benchmarks. Actual savings vary by roof pitch, shading, utility rate structure, and local permit costs. This is not financial advice. Consult a licensed solar installer before making any purchasing decision.