Is solar worth it in New York?

New York gets limited sunshine — about 3.8 peak sun hours a day — and residential electricity runs around $0.23/kWh. For a typical $150-a-month power bill, that points to roughly a 7.1-kW system costing about $21,159 — with no federal tax credit, which ended for installations completed after December 31, 2025 — paying for itself in about 11.8 years and netting on the order of $40,205 over 25 years. Your own numbers will differ — the calculator above uses your real bill.

New York pairs modest sun with strong incentives — NY-Sun rebates plus a generous state tax credit — and high rates. The stacked incentives make payback far better than the cloudy climate implies.

What changes the math in New York

• Your electricity rate — the more you pay per kWh, the more each solar kWh saves you. New York sits at about $0.23.
• Sun hours — more sun means a smaller, cheaper system covers the same usage. New York averages ~3.8 hours.
• Net metering / buyback — how your utility credits power you export swings the payback; check your specific utility's current terms.
• Install cost — quotes vary by installer and roof; the calculator defaults to a typical $/watt you can override.

New York: the rules that actually decide your payback

Who your utility is, and why it matters

Six investor-owned utilities cover most of the state — Con Edison in New York City and Westchester, National Grid upstate, NYSEG and RG&E across the west and centre, Central Hudson in the mid-Hudson valley, and Orange & Rockland — with PSEG Long Island operating the Long Island system. Rates differ enormously between them, and since your electricity rate is the strongest single driver of payback, the utility you are on matters more in New York than the sunshine does.

What your exported power is worth

Mass-market residential solar in New York has largely stayed on net metering while the state's broader compensation framework moved to the Value of Distributed Energy Resources "value stack". Residential systems interconnected since 2022 also pay a Customer Benefit Contribution — a monthly per-kW charge that offsets part of the net-metering benefit and which some savings estimates quietly omit. It is small relative to the bill, but it should appear in a quote that claims to model your savings.

The New York incentive layer

New York has the strongest stacked incentive layer of any state we cover. NY-Sun, administered by NYSERDA, pays a per-watt incentive that declines in blocks by region as capacity fills, so the value depends on when you sign and where you live. On top of that the state solar energy system equipment credit returns 25% of cost against state income tax, capped at $5,000 — five times Arizona's cap. New York City adds a property-tax abatement for solar installations. Together these can approach what the federal credit used to be worth.

Battery and self-consumption

With net metering still substantially intact, the bill-savings case for a battery is weaker here than in California or Arizona — exports already earn near retail. The stronger arguments are resilience and, in Con Edison territory, participation in utility storage programmes. The seasonal shape matters more: December production in New York is a fraction of June's, so an annual-average savings figure conceals months when the array contributes very little.

What to check on a New York quote

• Ask which NY-Sun block your region is in and what per-watt incentive applies today — blocks fill, and the figure in an old quote may no longer exist.
• Confirm the Customer Benefit Contribution is included in the savings model.
• Confirm the 25% state credit and its $5,000 cap, and check you have the state tax liability to absorb it.
• In New York City, ask whether the property-tax abatement has been factored in and who files for it.
• Ask for month-by-month production, not an annual total — winter is the number you want to see.

Programme and tariff detail above is summarised from NYSERDA — NY-Sun Megawatt Block, plus the NY State solar tax credit. Last reviewed 20 August 2026 by SolarDime editorial. These rules change — confirm the current terms with your utility and the regulator before you sign.