Cost of solar in New York: what it really costs in 2026
Solar in New York costs $3.00–$3.50/watt installed. After the 25% NY tax credit, NY-Sun rebates, and sales tax exemption, most NY homeowners bring net cost to $16,000–$20,000 — with payback in 7–10 years.
New York's solar incentive stack is one of the strongest in the country. The gross system price — $3.00 to $3.50/watt — is comparable to Massachusetts and the national average. But the combination of the 25% state tax credit, NY-Sun rebates, sales tax exemption, and high electricity rates in Con Edison territory produces a net cost and payback picture that is compelling across the state, and particularly strong in New York City and Westchester where Con Edison rates top $0.30/kWh.
What solar costs in New York before incentives
- 6 kW system: $18,000–$21,000. Suitable for smaller homes or lower-usage NYC condos and townhouses.
- 8 kW system: $24,000–$28,000. Most common residential size. Produces ~10,000–12,000 kWh/year in NY.
- 10 kW system: $30,000–$35,000. For larger homes, higher usage, or battery preparation. ~12,500–15,000 kWh/year.
Incentives that reduce your net cost
- 25% NY state income tax credit (capped at $5,000): Direct reduction in your state tax bill. On any system over $20,000, the maximum $5,000 applies.
- NY-Sun NYSERDA rebate: Per-watt upfront incentive that reduces your quoted system price. Ask your installer for the current rate in your territory.
- Sales tax exemption: NY exempts solar equipment from state and local sales tax. In NYC (combined rate 8.875%), that saves approximately $2,300 on a $26,000 system.
- NYC RPTAP (NYC only): 30% of system cost abated from your NYC property taxes over 4 years. Worth up to $7,800 on a $26,000 system for NYC homeowners.
- Property tax exemption (statewide): Solar-added home value is exempt from NY property tax assessment for 15 years statewide.
Net cost examples after incentives
NYC homeowner, 8 kW, $26,000 gross:
Less state credit: −$5,000
Less sales tax exemption: −$2,300
Less RPTAP (over 4 years): −$7,800
Less NY-Sun (estimate): −$1,500–$3,000
Net effective cost: ~$7,900–$11,200 — one of the best net costs in the country.
Upstate NY homeowner, 8 kW, $26,000 gross:
Less state credit: −$5,000
Less sales tax exemption: −$2,000
Less NY-Sun: −$1,500–$3,000
Net effective cost: ~$16,000–$17,500
Payback by region
An 8 kW system producing 11,000 kWh/year at Con Edison's $0.31/kWh rate: $3,410/year savings → payback ~3–4 years for NYC after full incentive stack. Upstate at National Grid's $0.24/kWh: $2,640/year → payback ~6–7 years. Long Island under VDER tariff: credit rates vary; typically slightly longer payback than mainland retail-rate NY.