Solar panels in New York: cost, payback and the rules that matter
New York homes pay 29.4¢ per kWh for electricity, the 5th highest of 51, up 13.0% in a year. A typical home needs 14 panels. With no federal tax credit they pay for themselves in about 6.5 yrs.
Four facts that decide solar in New York
1. The sun. One kilowatt of panels makes about 1,214 kWh a year in the median New York city, from 1,155 in Syracuse to 1,326 in Hempstead.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 29.4¢ in New York today.
3. What your utility pays for exports. Most New York utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. NY solar energy system equipment credit: 25% up to $5,000 (5-year carryforward). Source
New York's homes
7,722,646 households; 54.3% own their home. 3,220,929 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1959; 15.4% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific New York home
Solar in every New York city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| New York | 4.5 | 1,313 | 35° | 5.5 | 6.0 yrs | 10.1 yrs | 9.4 |
| Buffalo | 4.1 | 1,168 | 34° | 6.3 | 6.7 yrs | 11.4 yrs | 10.5 |
| Yonkers | 4.5 | 1,298 | 36° | 5.5 | 6.1 yrs | 10.2 yrs | 9.5 |
| Rochester | 4.0 | 1,165 | 34° | 6.3 | 6.7 yrs | 11.5 yrs | 10.6 |
| Syracuse | 4.1 | 1,155 | 34° | 6.3 | 6.8 yrs | 11.6 yrs | 10.7 |
| Albany | 4.3 | 1,214 | 37° | 5.9 | 6.5 yrs | 10.9 yrs | 10.2 |
| New Rochelle | 4.5 | 1,304 | 35° | 5.5 | 6.0 yrs | 10.2 yrs | 9.5 |
| Mount Vernon | 4.5 | 1,302 | 35° | 5.5 | 6.0 yrs | 10.2 yrs | 9.5 |
| Schenectady | 4.3 | 1,209 | 37° | 5.9 | 6.5 yrs | 11.0 yrs | 10.2 |
| Utica | 4.1 | 1,170 | 36° | 6.3 | 6.7 yrs | 11.5 yrs | 10.6 |
| White Plains | 4.5 | 1,298 | 36° | 5.5 | 6.1 yrs | 10.2 yrs | 9.5 |
| Hempstead | 4.6 | 1,326 | 35° | 5.5 | 5.9 yrs | 10.1 yrs | 9.3 |
| Troy | 4.3 | 1,214 | 37° | 5.9 | 6.5 yrs | 10.9 yrs | 10.2 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the New York average home. $3.00/W, cash, 25 years.
Rule changes that affect New York
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in New York
How much do solar panels cost in New York?
A 5.9 kW system, the size the average New York home needs, costs about $14,750 to $22,125 before incentives in 2026. NY solar energy system equipment credit: 25% up to $5,000 (5-year carryforward).
Is solar worth it in New York?
In the median New York city, solar pays for itself in about 6.5 yrs if exported power earns the retail rate, or 10.9 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in New York?
NY solar energy system equipment credit: 25% up to $5,000 (5-year carryforward). The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a New York home need?
About 14 panels of 420 watts for the state-average 571 kWh a month. Sunnier cities need fewer: Hempstead gets 1,326 kWh per kW a year, Syracuse 1,155.