Updated for 2026 · Last reviewed July 2026 by the MySolarFY editorial team, who verify every rate, incentive, and net-metering figure against a primary source.
- High PSEG Long Island bills are the reason solar pays here. New York residential electricity averages about 28.55 cents per kWh (EIA, as of March 2026), among the highest in the nation, and PSEG Long Island’s all-in delivery-plus-supply rate sits at the top of that range, so every kilowatt-hour your roof makes offsets an expensive one.
- A typical Long Island roof makes roughly 8,100 kWh a year. A standard 6 kW system produces about 8,095 kWh a year in Hempstead and 8,090 kWh in Islip (NREL PVWatts, as of 2026), enough to cover most of a normal home’s use.
- Your utility is PSEG Long Island, and it keeps true retail net metering. Unlike most of New York, which moved to the lower VDER Value Stack, PSEG Long Island still credits residential rooftop exports at the full retail rate (LIPA Tariff, effective January 1, 2026, leaf 34F). A small Customer Benefit Contribution charge applies to systems interconnected since 2022.
- New York’s 25% state tax credit still pays, up to $5,000. The NY Solar Energy System Equipment Credit is worth 25% of the system cost, capped at $5,000, in effect for 2026, and it applies to a purchase or a 10-year-plus lease or PPA (NY Dept. of Taxation and Finance, Form IT-255, as of 2026).
- The federal 30% homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so a Long Island homeowner who buys solar in 2026 cannot claim it. The New York state credit is separate and still active.
- The NY-Sun upfront rebate is mostly gone on Long Island. The standard residential NY-Sun Megawatt Block is fully subscribed here, though an income-eligible Affordable Solar incentive and a battery-storage incentive remain for those who qualify (NYSERDA NY-Sun, as of 2026).
- New York residential electricity rate: about 28.55 cents per kWh, as of March 2026 (EIA).
- Typical production: about 8,090 to 8,095 kWh a year from a 6 kW system in Nassau and Suffolk, as of 2026 (NREL PVWatts).
- Estimated payback: roughly 6 to 8 years for a cash-bought system after the 25% New York credit, on our own math below (SolarFY estimate, 2026).
- Headline incentive still active: the 25% New York State tax credit, capped at $5,000, as of 2026 (NY Tax Dept.).
- PSEG Long Island Customer Benefit Contribution charge: $0.0372 per kW of DC capacity per day, about $1.13 per kW per month, for systems interconnected since January 1, 2022, as of 2026 (LIPA CBC Statement No. 5).
Yes, solar is worth it on Long Island for most owner-occupied homes: at about 28.55 cents per kWh, a cash-bought 6 kW system pays back in roughly 6 to 7 years after the 25% New York State tax credit, on our own math below. Long Island homeowners pay some of the highest electricity prices in the country, and that single fact is what makes rooftop solar pay off from Montauk to the Nassau line. The question here is rarely whether solar works, it is the local detail: your utility is PSEG Long Island, your NY-Sun rebate window looks different than it does upstate, and what your town permitting office asks for varies from Hempstead to Islip to Brookhaven. This is a whole-island guide, Nassau and Suffolk together, covering what solar actually costs on Long Island in 2026, how PSEG Long Island net metering credits your power, the New York incentives that still pay, and where to check the numbers for your own town, then you can see what you qualify for in about a minute.
Why Long Island’s electric rates make solar worth it
The reason solar pays on Long Island is the price of the power it replaces. New York residential electricity averages about 28.55 cents per kWh (EIA, as of March 2026), one of the highest rates in the country, and PSEG Long Island customers sit at the top of that range once you add the delivery charge, the supply charge, and the surcharges together. So every kilowatt-hour your roof makes offsets an expensive grid kilowatt-hour, and a Long Island home spending $150 to $300 or more a month on electricity is a strong solar candidate. For the exact cents on your own bill, add the delivery and supply lines on your PSEG Long Island statement, since both move on their own schedule.
Your production is what turns that high rate into savings. Long Island sits at a solar resource typical of the coastal Northeast, and a well-placed roof offsets a large share of a normal home’s yearly use. A standard 6 kW system produces about 8,095 kWh a year in Hempstead in Nassau County and about 8,090 kWh in Islip in Suffolk County (NREL PVWatts, as of 2026), which is roughly 1,350 kWh for every kilowatt of panels. Because output depends on your roof’s pitch, shading, and orientation, estimate your own roof rather than lean on a county average. Your production drives your net-metering credits, so it is worth getting right before you size a system.
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What solar costs on Long Island, and how fast it pays back
Long Island runs a little pricier than the New York average, and the payback is still strong. A turnkey residential install on Long Island typically runs about $3.20 to $4.50 per watt before incentives, with competitive quotes clustering near $3.25 to $3.75 (NYS Essential Power Long Island cost guide, as of 2025; New York sits in the $2.90 to $3.60 high-cost tier per NRG Clean Power 2026 cost guide). The table below runs our own estimate at a representative $3.30 per watt, applies the 25% New York state credit (capped at $5,000), and uses the live PVWatts production for Long Island against the 28.55 cent rate. It does not include the federal 25D credit, because that homeowner credit ended after December 31, 2025.
| System size | Est. production (kWh/yr) | Est. gross cost at $3.30/W | 25% NY credit (max $5,000) | Est. net cost | Est. first-year bill savings | Est. annual CBC charge | Est. payback (net of CBC) |
|---|---|---|---|---|---|---|---|
| 6 kW | 8,090 | $19,800 | $4,950 | $14,850 | $2,310 | about $80 | about 6.7 years |
| 8 kW | 10,790 | $26,400 | $5,000 | $21,400 | $3,080 | about $110 | about 7.2 years |
| 10 kW | 13,480 | $33,000 | $5,000 | $28,000 | $3,850 | about $135 | about 7.5 years |
How to read this table. Production comes from NREL PVWatts for Long Island (about 1,350 kWh per kW per year, PVWatts, as of 2026). First-year savings assume PSEG Long Island net metering credits your exports near the retail rate of 28.55 cents per kWh (EIA, as of March 2026). Net cost applies only the 25% New York credit, which caps at $5,000, so the larger systems hit the cap and their net cost falls more slowly. The annual CBC charge is the PSEG Long Island Customer Benefit Contribution at $0.0372 per kW of DC capacity per day (LIPA CBC Statement No. 5, as of 2026), and the final payback column already subtracts it from your yearly savings, so these are net figures, not gross. These are estimates to show the shape of the math, not a quote: your roof, usage, shading, financing, and final installed price move the numbers. Run your own address to see real figures.
Note: this math deliberately leaves out the 30% federal residential tax credit. That credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of 2026), so a Long Island homeowner buying in 2026 should not budget for it. The 25% New York State credit is a separate program and is still active. If a quote still shows a 30% federal credit line for a 2026 homeowner purchase, that is a red flag to question.
How PSEG Long Island credits the power your roof sends back
Here is the detail that sets Long Island apart from the rest of New York: it keeps true retail net metering. When your panels make more than you use, the extra flows to the grid and PSEG Long Island credits your account for it at the full retail rate, the same per-kilowatt-hour price other residential customers pay, banked month to month (LIPA Tariff for Electric Service, effective January 1, 2026, leaf 34F). That matters because most of New York State moved residential solar to the VDER Value Stack, a lower export-crediting formula, but LIPA’s own tariff keeps residential rooftop, its Mass Market class, on traditional retail-rate net metering, and NYSERDA confirms Mass Market LIPA projects cannot opt into VDER (NYSERDA 2026 Customer Benefit Contribution rates, footnote 4, as of 2026). So a sunny spring surplus helps cover a low-sun December, and once a year PSEG Long Island trues up your account and pays out any remaining excess credits at an avoided-cost rate. If you are on a time-of-day rate, exports and imports are valued in their own peak and off-peak bands, so sizing and usage timing matter more.
One Long Island wrinkle: the Customer Benefit Contribution charge. New York’s net-metering framework lets utilities bill a Customer Benefit Contribution (CBC), a small charge based on the size of your system in kilowatts, so a rooftop customer still pays a share of fixed grid costs. On Long Island the residential CBC is $0.0372 per kW of DC capacity per day, about $1.13 per kW per month, and it applies only to systems that became substantially interconnected on or after January 1, 2022 (LIPA Customer Benefit Contribution Statement No. 5, effective January 1, 2026, as of 2026). For a typical 7 kW system that is roughly $8 a month, or about $95 a year, modest next to the bill you offset, but it is why net metering here is worth a bit less than a pure one-for-one swap. Systems interconnected before 2022 do not pay it. The deep mechanics of PSEG Long Island’s net metering, rate bands, and the CBC live on our PSEG Long Island solar guide; this page keeps to the island-wide picture. For how crediting works in general, see how net metering credits your solar exports.
The New York incentives that still pay a Long Island homeowner
Beyond net metering, a Long Island home stacks the same statewide New York benefits as the rest of the state, with one important Long Island caveat on the NY-Sun rebate. These are New York’s own programs, separate from the federal residential credit that ended for systems placed in service after December 31, 2025, and they still pay a 2026 buyer.
| Incentive | What it gives you | The Long Island detail |
|---|---|---|
| NY State Solar Energy System Equipment Credit | 25% of system cost, capped at $5,000, claimed on Form IT-255 | Applies to a purchase or a 10-year-plus lease or PPA, in effect for 2026 with the cap at $5,000 (NY Tax Dept., as of 2026) |
| Real property tax exemption (RPTL Section 487) | A 15-year exemption from the added property-tax value of the system | Some towns can opt out, so confirm your Nassau or Suffolk town or village has not (DSIRE, as of 2026) |
| NY State sales tax exemption | Residential solar equipment and installation are exempt from the 4% state sales tax | Local county sales tax is separate and is not automatically waived (DSIRE, as of 2026) |
| NY-Sun Megawatt Block (upfront rebate) | An upfront dollars-per-watt rebate paid through the installer in some NY regions | The standard residential block has been fully subscribed on Long Island since February 2019; the income-eligible Affordable Solar Residential Incentive still remains for those who qualify (NYSERDA NY-Sun program manual, as of 2026) |
The NY-Sun caveat is the honest Long Island disadvantage. Generic New York solar guides often promise an upfront NY-Sun rebate. For most Long Island homeowners that no longer applies, because the standard residential Megawatt Block in the PSEG Long Island region has been fully subscribed since February 2019, unlike parts of upstate where blocks may still be open (NYSERDA NY-Sun program manual, as of 2026). What remains for Long Island is the income-eligible Affordable Solar Residential Incentive for qualifying households and a solar-paired battery-storage incentive (NYSERDA Long Island storage incentive, as of 2026). The full statewide incentive detail lives on our New York solar guide, so we keep to the Long Island angle here.
What the federal tax-credit change means for Long Island
The federal homeowner credit is gone, but New York’s programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a Long Island homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit; SEIA, as of 2026). You will still see installer pages and search results implying the 30% credit is available; the accurate answer for 2026 is that the homeowner version already ended. The 25% New York State credit, net metering, and the property and sales-tax exemptions were not affected, and at Long Island’s high rates the bill offset alone is substantial. For the full picture, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner (IRS Clean Electricity Investment Credit, as of 2026). On a leased Long Island system you do not file a federal credit yourself; the company that owns the panels does, and it may pass some value through in your rate. The 25D homeowner credit, by contrast, ended after December 31, 2025.
Nassau versus Suffolk: what changes across the island
The solar economics are similar island-wide, but the ground-level details shift by town. Nassau County’s denser, older neighborhoods, from Hempstead and Valley Stream to Great Neck, tend to have smaller lots, more shading from mature trees, and in some villages a design-review step for street-facing panels. Suffolk County, from Islip and Babylon out to Brookhaven and the East End, tends to have larger lots and roofs but a wider spread of town permitting practices and, near the water, wind-load and flood-zone considerations that shape the mounting. Production barely differs, about 8,095 kWh a year for a 6 kW system in Hempstead versus 8,090 in Islip (NREL PVWatts, as of 2026), so the swing between a good and a poor Long Island solar project is your roof and your installer, not your county.
Town permitting is the variable most Long Island homeowners underestimate. Every Long Island town and incorporated village runs its own building department and solar permit process, and timelines and fees vary widely from Hempstead to Islip to Brookhaven to the East End villages. New York’s statewide Unified Solar Permit streamlines the paperwork in the many jurisdictions that adopted it, but not all have, so an installer who works your specific town regularly is worth more than a lower bid from one who does not. If your home is in an incorporated village with an architectural review board, plan for an extra step and a few extra weeks.
| Long Island factor | What to plan for |
|---|---|
| Nassau village design review | Some incorporated villages review street-facing panels; all-black, low-profile hardware clears more smoothly |
| Suffolk coastal and flood zones | Near-shore homes may need wind-load-rated racking and a flood-zone electrical detail |
| Town-by-town permitting | Timelines and fees vary; the statewide Unified Solar Permit speeds towns that adopted it |
| Older roof or 100-amp panel | An aging roof is best re-shingled before install; a 100-amp service may need an upgrade for solar plus a battery |
| Heavy tree shading (mature Nassau lots) | A shade study; fewer high-efficiency panels can beat a larger array |
Solar in your Long Island town
This whole-island guide links down to our town-level pages, where the local rate, production, and permitting notes get specific. Start with your town:
- Solar in Hempstead, the largest township in Nassau County.
- Solar in Westbury in central Nassau.
- Solar in Hicksville in the town of Oyster Bay.
- Solar in Valley Stream in southwestern Nassau.
- Solar in Garden City in central Nassau.
- Solar in Great Neck on the North Shore.
For the utility mechanics behind all of them, see the PSEG Long Island solar guide; for statewide rules, the New York solar guide. If your home is served by a different downstate utility, compare Con Edison solar in New York and National Grid solar in New York.
Paying for solar on Long Island: cash, loan, lease, or PPA
There is no single right way to pay for solar; the best fit depends on whether you want to own the system and claim the New York credit yourself, or avoid an up-front cost. A lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar. New York is unusual in that its 25% state credit can be claimed by a homeowner on a 10-year-plus lease or PPA, not only on a purchase (NY Tax Dept., as of 2026), which changes the math versus most states. To weigh the long-run numbers, see whether solar panels are worth it and the cost of adding a solar battery.
| Path | Up-front cost | Who claims the NY credit | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime savings |
| Solar loan | Little to none, financed | You, the owner | You want ownership without paying cash up front |
| Lease or PPA (10-year-plus) | $0-up-front where eligible | You, the resident, on a qualifying 10-year-plus term | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer on Long Island
Long Island has a deep market of licensed installers, from local Nassau and Suffolk companies to national brands, which is good for you because it means real competition on price and service. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid New York State home improvement contractor license and the electrical licensing your town requires.
- A clear workmanship and equipment warranty in writing.
- Real experience with PSEG Long Island interconnection and your specific town’s permitting, including any village architectural review, so the paperwork and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that shows the 25% New York credit correctly and does not promise the ended federal credit for a 2026 purchase. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your Long Island town so you can compare real local quotes side by side, with no obligation. See how MySolarFY works and our data and methodology.
Check which solar programs are available at your Long Island address →
Frequently asked questions
Are solar panels worth it on Long Island in 2026?
For most owner-occupied Long Island homes with decent sun, yes. New York residential electricity averages about 28.55 cents per kWh (EIA, as of March 2026), among the highest in the country, and PSEG Long Island’s all-in rate sits at the top of that range, so every kilowatt-hour your roof makes offsets an expensive grid one. A typical 6 kW system makes about 8,090 kWh a year here (PVWatts, as of 2026), and on our own math a cash system pays back in roughly 6 to 8 years after the 25% New York credit. Savings are not guaranteed and depend on your roof, usage, and how you pay, but the high local rate is what makes Long Island a strong solar market.
Who is my electric utility for solar on Long Island, and does it buy back solar power?
Your utility is PSEG Long Island, which operates the electric grid across Nassau and Suffolk counties on behalf of the Long Island Power Authority (LIPA). Your rooftop net metering, interconnection, and Permission to Operate all run through PSEG Long Island, and it credits residential exports at the full retail rate through traditional net metering rather than the lower VDER Value Stack most of New York uses (LIPA Tariff, effective January 1, 2026, as of 2026). Credits bank month to month, and once a year PSEG Long Island trues up your account and pays out any leftover excess credits at an avoided-cost rate. A small Customer Benefit Contribution charge of $0.0372 per kW per day applies to systems interconnected since 2022. For the full utility detail, see our PSEG Long Island solar guide.
Does Long Island still get the NY-Sun rebate?
Mostly not. The standard residential NY-Sun Megawatt Block, the upfront dollars-per-watt rebate, is fully subscribed on Long Island, so most homeowners here can no longer receive it, even though some upstate regions still have open blocks (NYSERDA NY-Sun, as of 2026). What remains for Long Island is an income-eligible Affordable Solar incentive for qualifying households and a battery-storage incentive that pairs with PSEG Long Island’s storage program. The bigger financial levers on Long Island are net metering and the 25% New York State tax credit, which are not tied to the NY-Sun block.
Is the 30% federal solar tax credit gone for Long Island homeowners?
Yes for homeowner purchases. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a Long Island homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS, as of 2026). A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. New York’s 25% state credit, net metering, and the tax exemptions were not affected, so the Long Island payback case still holds.
How does the 25% New York state solar tax credit work?
New York’s Solar Energy System Equipment Credit is worth 25% of your system cost, capped at $5,000, and you claim it on Form IT-255 with your state income taxes (NY Dept. of Taxation and Finance, as of 2026). It is in effect for 2026, and unusually it applies not only to a purchase but also to a lease or power purchase agreement of at least 10 years, where the resident claims it based on payments. If your credit is larger than your tax bill in one year, New York generally lets you carry the unused amount forward. It is separate from the federal residential credit, which ended for systems placed in service after December 31, 2025.
How much do solar panels cost on Long Island?
A turnkey residential install on Long Island typically runs about $3.20 to $4.50 per watt before incentives, with competitive quotes nearer $3.25 to $3.75 (NYS Essential Power, as of 2025). For a common 8 kW system that is roughly $26,000 to $30,000 before incentives, which the 25% New York credit can cut by up to $5,000. On our own estimate at $3.30 per watt, an 8 kW system nets about $21,400 after the New York credit and pays back in roughly 7 years at Long Island rates. Your final price depends on your roof, equipment, and installer, so compare a few written quotes and run your own address.
Can I get solar with no up-front cost on Long Island?
Some homeowners can, through a lease or power purchase agreement (PPA) where eligible, which can mean no out-of-pocket cost at installation in exchange for monthly payments. This is not free solar; it is a long-term agreement, typically 20 to 25 years, and total payments may exceed a cash purchase. New York is one of the few states where the resident on a 10-year-plus lease or PPA can still claim the 25% state credit, which improves the case (NY Tax Dept., as of 2026). If you want to own the system outright, a cash purchase or solar loan keeps the most lifetime savings. Check what you qualify for before deciding.
Reviewed by the SolarFY Editor. Figures were verified against the linked EIA, NREL PVWatts, NYSERDA, NY Department of Taxation and Finance, DSIRE, and IRS sources as of July 2026; net-metering terms, the PSEG Long Island Customer Benefit Contribution charge, NY-Sun block status, and town permitting can change, so confirm current terms with PSEG Long Island, NYSERDA, and your town before you decide. Learn more about the SolarFY editorial team and our data and methodology. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. The federal residential solar credit (Section 25D) ended for expenditures after December 31, 2025, and Long Island homeowners buying in 2026 cannot claim it; the 25% New York State credit is a separate, still-active program. Solar panels are not free and monthly payments apply on financed options. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.