Solar Calculator for New York: Costs, Incentives & ROI
New York pairs some of the highest residential electricity rates in the United States with one of the strongest state-level solar incentive stacks in the country, and the combination makes rooftop solar economically compelling for most owner-occupied homes despite the state's modest peak-sun-hours resource. The New York State Energy Research and Development Authority administers the NY-Sun program, which adds an upfront per-watt cash incentive that declines through publicly tracked Megawatt Block tiers as installed capacity targets are met in each utility region. On top of the federal Investment Tax Credit and the NY-Sun incentive, New York offers a 25 percent state personal income tax credit on residential solar costs, capped at $5,000 per system, claimed on Form IT-255. The state also exempts the added value of a qualifying solar installation from local property tax assessment for 15 years under Real Property Tax Law § 487, although municipalities are permitted to opt out. The Public Service Commission's Value of Distributed Energy Resources (VDER) order replaced traditional kilowatt-hour net metering for most newer residential interconnections with a more complex monetary compensation framework. Use the calculator below to estimate your specific 25-year savings based on your ZIP code, utility, NY-Sun region, and electricity usage.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in New York
Average installed solar costs in New York typically run between $2.95 and $3.65 per watt for residential systems before any incentives, based on Lawrence Berkeley National Laboratory Tracking the Sun data and EnergySage marketplace pricing. A typical 6 kW system therefore costs roughly $17,700 to $21,900 before incentives — modestly above the national residential average of about $3.00 per watt because labor costs, NYSERDA-required system commissioning paperwork, and downstate roof complexity push installer pricing upward in the New York City and Long Island markets. The 30 percent federal Investment Tax Credit, available through 2032 under the Inflation Reduction Act, applies to the full cost of equipment plus labor and permitting, which brings the net cost of a typical 6 kW system down to approximately $12,400 to $15,300. The NY-Sun upfront rebate further reduces installed cost by roughly $0.20 to $0.40 per watt depending on the customer's NYSERDA region and the active Megawatt Block tier — typically another $1,200 to $2,400 on a 6 kW system. The 25 percent state tax credit (capped at $5,000 and claimed on IT-255) is taken on top of the federal credit and applies to the original installed cost before NY-Sun rebate. Stacked, the incentive bundle frequently brings net out-of-pocket for a 6 kW system in New York into the $7,000 to $10,000 range.
- Avg. installed cost
- $3.30/W
- Typical 6 kW system
- $17,700–$21,900
Top Solar Incentives in New York
Live incentive data not currently available for New York. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in New York
Residential electricity rates in New York rank among the highest in the nation. The 2025 statewide average runs near 22 cents per kilowatt-hour according to EIA data, but Con Edison customers in Manhattan, the Bronx, Brooklyn, Queens, and Westchester County frequently pay an all-in delivery-plus-supply rate above 30 cents per kilowatt-hour, particularly during summer billing months. PSEG Long Island, National Grid upstate, NYSEG, and Rochester Gas and Electric serve the rest of the state at rates that are typically lower than Con Edison but still well above the national average. The Public Service Commission has phased out traditional one-to-one kilowatt-hour net metering for newer residential interconnections in favor of the Value of Distributed Energy Resources framework, which compensates exported solar at a monthly-credited monetary value combining energy, capacity, environmental, and grid-services components rather than at the customer's retail rate. The result is that solar economics in New York depend heavily on a homeowner's specific utility, rate class, and on whether self-consumption (which directly avoids the retail rate) or export (which earns the VDER value stack) dominates the system's annual production profile. Customers grandfathered onto traditional net metering before VDER's effective date in their utility territory typically retain that tariff for a defined period.
Peak Sun Hours in New York
New York averages between 3.8 and 4.6 peak sun hours per day, placing it on the lower end of the residential solar resource curve in the contiguous United States — well below sunbelt states but materially above the threshold for economically attractive systems given New York's high retail rates and stacked incentives. The Hudson Valley, Capital Region, and Western New York average roughly 4.0 to 4.4 peak sun hours, with Long Island and the southern coast slightly higher at 4.2 to 4.6. Buffalo, Rochester, and Syracuse experience pronounced winter lake-effect cloud cover that depresses December and January production to a small fraction of summer peaks, but annual yields still typically range from 1,100 to 1,250 kilowatt-hours per installed kilowatt — comparable to or better than parts of cloudy northern Germany, one of the world's most established residential solar markets. Snow load is engineered into modern racking and most residential snow accumulations slide off panels naturally within a few days of accumulation. NREL's PVWatts tool uses ZIP-code-level Typical Meteorological Year data to model month-by-month variation specific to your address, so the production estimate from the calculator below reflects local microclimate rather than just statewide averages.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,700
- Payback period
- 6.5 years
- 25-year net savings
- $35,000
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in New York
- New York10001
- Buffalo14202
- Rochester14604
- Syracuse13202
- Albany12207
Common Questions About Solar in New York
What is NY-Sun and how does the MW Block incentive work?
NY-Sun is the New York State Energy Research and Development Authority's flagship solar incentive program, providing an upfront per-watt cash rebate paid to participating installers (and passed through to the customer as a reduced contract price) for qualifying residential, commercial, and community solar projects. The residential rebate is structured as a series of Megawatt Block tiers within each of three NYSERDA regions — ConEdison, Upstate, and Long Island. As cumulative installed capacity in a region fills a Block, the per-watt incentive steps down to the next, lower tier. Current Block status and per-watt incentive amounts are published in real time on the NY-Sun MW Block dashboard. The rebate typically reduces installed cost by roughly $0.20 to $0.40 per watt depending on region and active Block, which on a 6 kW system corresponds to a $1,200 to $2,400 reduction in upfront cost. NY-Sun is administered by the installer and does not require homeowner paperwork beyond signing the standard contract.
How does the New York 25 percent state solar tax credit work?
New York State offers a personal income tax credit equal to 25 percent of the qualified expenditures on a residential solar energy system, capped at $5,000 per system. The credit is claimed on New York State Tax Form IT-255 in the year the system is placed in service and is non-refundable, meaning it reduces state tax liability dollar-for-dollar but does not generate a refund beyond zero liability. Any unused credit may be carried forward for up to five tax years. The credit applies to systems installed on residential property used as a primary residence and is calculated on the original installed cost before the federal Investment Tax Credit and before any NY-Sun rebate. The state credit is stackable with the 30 percent federal Investment Tax Credit and the NY-Sun upfront rebate, producing one of the strongest residential solar incentive combinations in the country. Consult a New York-licensed tax professional for filing specifics and to confirm primary-residence eligibility.
How does net metering work under VDER in New York?
Most newer residential solar interconnections in New York operate under the Public Service Commission's Value of Distributed Energy Resources framework rather than traditional one-to-one kilowatt-hour net metering. Under VDER, exported solar production is credited monthly at a calculated monetary value that combines an energy component, a capacity component, environmental and demand-reduction components, and a market transition credit designed to soften the move away from full retail-rate net metering. The aggregate VDER credit per exported kilowatt-hour typically runs somewhat below the retail rate but varies materially by utility, time of export, and program vintage. Self-consumed solar — production that offsets the home's own consumption in real time rather than being exported — continues to be effectively credited at the full retail rate because each kilowatt-hour used on-site directly avoids the retail import. The implication is that VDER economics improve when households add timing flexibility such as battery storage or load shifting that increases the share of solar production consumed on-site.
Does New York have a property tax exemption for solar?
Yes. Under New York Real Property Tax Law § 487, the added assessed value attributable to a qualifying residential solar electric system is exempt from local property tax for 15 years following installation. The exemption is automatic statewide by default, but Real Property Tax Law § 487 permits any local taxing jurisdiction — county, city, town, village, or school district — to opt out by local law or resolution. As a result, homeowners should confirm with the local assessor's office whether the exemption applies in their specific municipality before sizing a system on the assumption of property tax neutrality. In municipalities that have not opted out, the exemption combines with the 25 percent state tax credit, the NY-Sun rebate, and the 30 percent federal Investment Tax Credit to eliminate most direct tax friction on a residential solar purchase for the system's first 15 years.
Will winter snow and clouds make solar a bad investment in New York?
No. Despite New York's lower peak-sun-hours resource and pronounced winter cloud cover — particularly upstate, where Buffalo, Rochester, and Syracuse experience significant lake-effect snow — annual energy yields for properly oriented residential systems in New York typically range from about 1,100 to 1,250 kilowatt-hours per installed kilowatt. That yield is comparable to or slightly above mature European residential solar markets at similar latitudes. December and January production fall to a small fraction of June and July peaks, but annualized over the year the higher production in long summer days more than offsets the winter shortfall. New York's net-metering and VDER credit-rollover rules generally allow summer surplus credits to be applied to winter import bills, smoothing the seasonality. Snow accumulations on residential panels typically slide off within a few days of accumulation given the panel surface and typical roof pitch, and persistent snow cover is rare on south-facing roof slopes.