Is Solar Worth It in New York in 2026?
New York is not Florida or Arizona, but it's a better solar state than most assume. At latitude 41.5N, a well-placed roof still produces a solid ~1,317 kWh per installed kilowatt annually — long summer days make up for short winter ones. What makes New York interesting isn't the sun, it's the bill: New Yorkers already pay some of the highest electricity rates in the country, up 68 percent since 2005. Every kWh your roof makes is one you don't buy at 26.4 cents.
But 2026 changed the federal math everywhere. The 30 percent federal tax credit that used to knock thousands off a system's cost ended for installations completed after December 31, 2025 — there's no federal credit left for a homeowner who buys a system outright. New York's own incentives survived: a 25 percent state tax credit up to $5,000, a full sales tax exemption, a property tax exemption on added value, and strong net metering. NYC adds a fourth layer. Stacked together, those soften the cost meaningfully — just not enough to erase a longer payback. This page walks through New York's real numbers so you can decide with your own bill in hand, not a salesperson's slide deck.
New York Electricity Prices Keep Climbing
Solar is a bet on future electricity prices: every kWh your roof makes is one you don't buy from the utility. Here's where New York rates have actually gone, from federal EIA data.
Full New York electricity price data (1990–2025)
| Year | New York (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 11.4 | 7.8 |
| 1991 | 12.0 | 8.0 |
| 1992 | 12.4 | 8.2 |
| 1993 | 13.2 | 8.3 |
| 1994 | 13.6 | 8.4 |
| 1995 | 13.9 | 8.4 |
| 1996 | 14.0 | 8.4 |
| 1997 | 14.1 | 8.4 |
| 1998 | 13.7 | 8.3 |
| 1999 | 13.2 | 8.2 |
| 2000 | 14.0 | 8.2 |
| 2001 | 14.0 | 8.6 |
| 2002 | 13.6 | 8.4 |
| 2003 | 14.3 | 8.7 |
| 2004 | 14.5 | 9.0 |
| 2005 | 15.7 | 9.5 |
| 2006 | 16.9 | 10.4 |
| 2007 | 17.1 | 10.7 |
| 2008 | 18.3 | 11.3 |
| 2009 | 17.5 | 11.5 |
| 2010 | 18.7 | 11.5 |
| 2011 | 18.3 | 11.7 |
| 2012 | 17.6 | 11.9 |
| 2013 | 18.8 | 12.1 |
| 2014 | 20.1 | 12.5 |
| 2015 | 18.5 | 12.7 |
| 2016 | 17.6 | 12.6 |
| 2017 | 18.0 | 12.9 |
| 2018 | 18.5 | 12.9 |
| 2019 | 17.9 | 13.0 |
| 2020 | 18.4 | 13.2 |
| 2021 | 19.5 | 13.7 |
| 2022 | 22.1 | 15.0 |
| 2023 | 22.2 | 16.0 |
| 2024 | 24.4 | 16.5 |
| 2025 * | 26.4 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
New York residential electricity sits at about 26.4 cents per kWh as of the EIA's preliminary 2025 figures — up roughly 68 percent since 2005, climbing about 3.6 percent a year over the last decade. That's one of the higher retail rates in the country, driven by an aging grid, downstate congestion, and the cost of serving a state that runs from Long Island to the Canadian border. Nobody can promise the line keeps climbing at that exact pace, but a high, rising rate is exactly the backdrop that makes each kWh a rooftop system produces worth more over time.
The New York Sun, Month by Month
Panels don't care about air temperature — they care how high the sun climbs and how long it stays up. At 41.5 degrees north, New York sees a much bigger swing between summer and winter sun angles than a southern state, which shows up directly in month-to-month production.
New York monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 98 |
| Feb | 104 |
| Mar | 116 |
| Apr | 121 |
| May | 124 |
| Jun | 122 |
| Jul | 128 |
| Aug | 122 |
| Sep | 118 |
| Oct | 103 |
| Nov | 83 |
| Dec | 79 |
| Year | 1318 |
Source: NREL PVWatts typical-year estimate (New York), per installed kW at latitude tilt.
May through August carry the bulk of annual production, with June near the peak thanks to long days and a high sun angle. November through January produce noticeably less — shorter days, a low sun angle, more overcast stretches off the Great Lakes and Atlantic. A New York system still lands around 1,317 kWh per installed kW per year, respectable but uneven — size and payback math should be built on an annual average, not one great summer month.
What Solar Costs in New York in 2026
Most residential solar installs in New York run about $2.75 to $3.30 per watt before incentives, per EnergySage marketplace data — a typical ~12.8 kW New York system runs close to $35,000 gross. Other trackers and installer-reported figures run a touch higher, $3.05 to $3.35 per watt. With the federal credit gone for installs completing after 2025, the number you negotiate is much closer to the number you actually pay than it would have been a year ago.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $13,750 to $16,500 | ~6,585 kWh/yr (~$145/mo at 26.4¢) | Smaller home, lower usage |
| 8 kW | $22,000 to $26,400 | ~10,536 kWh/yr (~$232/mo) | Average New York home |
| 12 kW | $33,000 to $39,600 | ~15,804 kWh/yr (~$348/mo) | Large home, electric heat or heavy usage |
New York's sales tax exemption applies across this whole table, and the state's 25 percent credit (capped at $5,000) matters proportionally more on the smaller systems. Always compare price per watt across at least three quotes, and confirm none still assume the federal credit.
Estimate Your New York Payback
The calculator below is already set to New York's average electricity rate and typical local sun production. Enter your monthly power bill to see estimated system size, payback period, and 25-year savings. New York rates have grown about 3.6 percent a year over the last decade — a reasonable starting value for the inflation field, and you can drag it to test a more optimistic or pessimistic future.
New York Solar Incentives That Still Exist in 2026
Let's separate what's gone from what survived.
- Gone — the 30 percent federal credit: Ended for installations completed after December 31, 2025, no phase-out. A quote that still assumes it hasn't been updated.
- Still here — NYS Solar Energy System Equipment Credit: 25 percent of qualified cost, capped at $5,000, non-refundable but carrying forward up to 5 years. A pending bill would raise the cap to $10,000, but as of mid-2026 it hasn't been signed into law.
- Still here — full sales tax exemption: Tax Law §1115(ee) exempts residential solar equipment and installation from state sales and use tax, no expiration date, now also covering paired battery storage. Local sales tax exemption varies by county and city.
- Still here — property tax exemption: Real Property Tax Law §487 exempts, for 15 years, any increase in assessed value from installing solar, automatically unless your municipality has opted out. See our property taxes and home finances guide.
- Mostly gone — NY-Sun rebates: Closed or exhausted for standard-income buyers in Con Edison and Upstate territory. Survives only for low-income households (80% AMI or below) at $0.80/W upstate and $0.40/W on Long Island. Check current block status at nyserda.ny.gov.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit through 2027, but it belongs to the leasing company — it may lower your lease rate, or may not.
The NYC Angle: A Property Tax Abatement Nobody Upstate Has Heard Of
If you own property in New York City — including a co-op or condo in tax classes 1, 2, or 4, any borough, even a landmark building — the city's Solar Electric Generating System (SEGS) property tax abatement gives you a 30 percent abatement of installed system cost, credited against your NYC property tax bill at 7.5 percent a year for four years. It's extended through January 1, 2035, and it stacks on top of the statewide RPTL §487 exemption above — a separate benefit, not a substitute. A Buffalo or Rochester homeowner has no equivalent; this is a NYC Department of Finance program, not a NYSERDA or statewide one, so ask your installer or accountant about it specifically if your property is inside the five boroughs.
Net Metering in New York
Net metering credits you for extra power your panels send back to the grid on a bright day, so what you export in May can offset what you draw on a dark January afternoon. New York's default for most residential rooftop solar — under tariffs from Con Edison, NYSEG, National Grid, RG&E, and PSEG Long Island — is standard 1:1 net metering: exports earn a credit at the full retail rate, banked and rolled forward on your bill. That's a real advantage over states that only pay a lower "avoided cost" rate. Once you interconnect, you lock in that tariff for 20 years.
A separate, more complex program called VDER (the "Value Stack") applies mandatorily to some project types, like community solar and larger systems, but residential rooftop customers can generally still elect standard net metering instead. The one wrinkle: since January 1, 2022, every newly interconnected residential solar customer — on standard net metering or VDER — pays a monthly Customer Benefit Contribution, a per-kW-of-system-size charge set annually by each utility. It doesn't apply if your system interconnected before 2022, and it varies by utility and changes yearly, so check the current published CBC schedule before an installer quotes you a number.
How to Go Solar in New York
Work through these steps in order before you commit.
- Pull your last 12 power bills and find your average monthly cost — the higher it is, the more you stand to save, especially if you heat with electricity.
- Check that your roof faces south, east, or west and is mostly free of shade. Steep, older roofs sometimes need reinforcement first.
- Confirm your roof has 10 to 15 years of life left, or replace it first. See our roofing guide.
- Get at least three quotes and compare price per watt, equipment, and warranties — make sure none still assume the federal credit.
- Confirm your utility's current net metering tariff and CBC rate, and whether NY-Sun's low-income rebate applies.
- In New York City, ask your installer or accountant to run the SEGS abatement numbers specifically.
- Have an electrician confirm your wiring can handle the new load — older housing stock sometimes needs a service upgrade first. Our electrical guide covers what that involves.
For the full picture of how panels work, sizing, and buying versus leasing, read our main solar panels guide. It covers the technology and the decision in depth, while this page focuses on what's specific to New York.
Sources
Figures on this page are 2026-current, from primary sources. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 preliminary). State tax credit: NY Dept. of Taxation and Finance. Sales tax: NY Tax Law §1115. Property tax: NY Real Property Tax Law §487. NYC abatement: NYC Dept. of Finance. Net metering and CBC: NYSERDA NY-Sun and Con Edison tariffs. Cost data: EnergySage. Production: NREL PVWatts. Reviewed every six months.