In 2026 a typical New York home solar system runs about $23,000 before incentives, near $18,100 after the state’s 25% tax credit (the federal residential credit ended after December 31, 2025). Whether it is worth it comes down to payback, and in New York that splits sharply by region: roughly 6 to 7 years in New York City versus about 11 to 14 years upstate, because downstate Con Edison rates and stronger city sun both work in your favor.
By SolarFY Editor · Last reviewed August 2026
The two questions New York homeowners actually ask are simple: how much do solar panels cost here, and is it worth it? The honest 2026 answer is that the sticker price is roughly the same across the state, but the payback is not. New York is really two solar markets. Downstate, in New York City and on Long Island, sky-high electricity rates and good sun make solar pay back fast. Upstate, lower rates and a bit less sun stretch that same system out for years longer. This page shows what a New York system really costs in 2026, walks through our own payback model for a downstate versus an upstate home, and gives you a straight worth-it verdict based on where you live.
A typical 7 kW New York system costs about $23,000 before incentives and near $18,100 after the state’s 25% credit, and it pays back in about 6 to 7 years in New York City but roughly 11 to 14 years upstate. That regional gap, not the price tag, is the real story of solar cost in New York.
Updated for 2026. Every figure below is dated to its source and was last reviewed in August 2026. Installed prices, utility rates, the NY-Sun rebate, and net-metering terms change on their own schedules, so treat these as estimates and confirm the numbers for your own roof, utility, and address.
How much do solar panels cost in New York in 2026?
A typical New York home installs a 7 to 8 kW system, and at about $3.30 per watt that runs roughly $23,000 before incentives in 2026.
There is no official published New York average cost per watt for 2026, so we model it from the national benchmark: residential solar averaged about $3.35 per watt before incentives in the fourth quarter of 2025 (SEIA U.S. Solar Market Insight, as of 2026), and New York, with its higher labor and permitting costs, typically runs at or slightly above that. So a 7 kW array at about $3.30 per watt lands near $23,000 gross. Your real quote depends on panel choice, roof complexity, and installer, which is exactly why comparing local quotes matters.
Here is how that gross price becomes your net cost in 2026, after the incentives a New York homeowner can actually use.
| Line item (7 kW system) | Amount, as of August 2026 | Source |
|---|---|---|
| Gross system price, about $3.30 per watt | About $23,100 | SEIA national benchmark, NY at or above |
| New York 25% state credit (capped at $5,000) | Minus $5,000 | NY Tax & Finance |
| Federal 25D residential credit | $0, ended after December 31, 2025 | IRS |
| Net cost before any NY-Sun rebate | About $18,100 | MySolarFY model |
| NY-Sun up-front rebate (per watt, varies by region and block) | Lowers it further | NYSERDA NY-Sun |
Inputs and assumptions: gross price modeled at about $3.30 per watt for a 7 kW system, grounded in the SEIA national residential average of about $3.35 per watt in Q4 2025 with New York running at or above it; New York Solar Energy System Equipment Credit at 25% of system cost, capped at $5,000 (NY Department of Taxation and Finance, as of 2026). The federal 25D residential credit ended after December 31, 2025 (IRS), so a 2026 cash or loan buyer does not get it. NY-Sun rebates vary by region and step down by megawatt block, so we leave them out of the net figure to stay conservative. Estimate only, not a quote.
The one thing that changed the math for 2026 is the federal credit. 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 (IRS, as of January 2026), so a New York homeowner who buys with cash or a loan in 2026 cannot claim it. New York’s own 25% state credit, net metering, and NY-Sun were not affected, which is why the state case for solar holds up on its own. For the national methodology behind system pricing, see our guide on how much solar panels cost, and for the state incentive details see New York solar tax credits in 2026.
Is solar worth it in New York? Payback by region
Solar is worth it in New York when your payback lands comfortably inside the 25-year life of the panels, and downstate it clears that bar easily while upstate it is a longer, closer call.
Worth-it is really a payback question, and payback is your net cost divided by the electricity you offset each year. In New York two things swing that offset hard by region: the all-in electricity rate you get to erase, and how much sun your roof sees. Downstate has both a high rate and strong sun; upstate has a lower rate and a bit less sun. Same panels, very different payback.
The table below is our own model, computed from the New York electricity rate and local NREL PVWatts production, not a figure lifted from another site. It holds one representative 7 kW system constant and drops it on a New York City roof and an upstate Buffalo roof to show the spread.
| Where the system sits | 7 kW production a year (PVWatts) | All-in rate used | Annual bill offset | Simple payback on about $18,100 net |
|---|---|---|---|---|
| New York City, Con Edison (ZIP 10009) | About 9,364 kWh | About 30 to 33 cents/kWh (Con Edison) | About $2,800 | About 6 to 7 years |
| Upstate Buffalo, National Grid (ZIP 14201) | About 8,399 kWh | About 20 cents/kWh (National Grid) | About $1,650 | About 11 to 14 years |
Inputs and assumptions: net cost about $18,100 for a 7 kW system after the 25% state credit (above); production from NREL PVWatts v8, about 9,364 kWh a year in New York City (ZIP 10009) and about 8,399 kWh upstate in Buffalo (ZIP 14201), run in August 2026; New York City rate near the statewide all-in figure of about 29.9 cents/kWh (EIA, 2026) with Con Edison running into the low 30s, and upstate all-in rates in the high teens to low 20s. Annual offset is production times the all-in rate, less the small monthly Customer Benefit Contribution, capped at your usage. Estimate only, not a quote.
According to MySolarFY’s analysis (August 2026), the same 7 kW system pays back in about 6 to 7 years in New York City but roughly 11 to 14 years upstate, a spread of five to seven years driven almost entirely by the rate and sun gap between downstate and upstate. In New York City, 9,364 kWh a year at Con Edison’s low-30s rate offsets around $2,800, so about $18,100 net divides down to roughly 6 to 7 years. In Buffalo, 8,399 kWh at about 20 cents offsets closer to $1,650, which stretches the same net cost past 11 years, and toward 13 to 14 years in the lowest-rate upstate territories such as NYSEG, where the all-in rate you erase can dip into the high teens. Both still beat the 25-year panel warranty, but the downstate case is far stronger.
Two honest caveats sit on top of this. First, net metering credits your exports at that all-in rate, but a year-end surplus is valued below full retail and the credit does not erase the fixed monthly customer charge, so sizing the system near your annual usage rather than oversizing it is what protects the payback. Second, New York is moving newer systems onto its Value of Distributed Energy Resources (VDER) Value Stack, so the exact export value depends on your utility and when you interconnect. We keep those mechanics on our New York net metering and VDER explainer. For the pure worth-it framework across states, see is solar worth it in 2026 and the state solar payback index.
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Why solar payback is so different downstate versus upstate
The regional spread comes from two levers stacking: the rate you erase and the sun you capture.
Downstate, Con Edison in New York City and Westchester carries the highest average residential bills in the state, into the low 30s cents per kWh all-in, and PSEG Long Island is not far behind (Con Edison, as of 2026). Every kWh your roof makes there erases one you would have bought at that high rate. Upstate, National Grid, NYSEG, RG&E, and Central Hudson run in the high teens to low 20s all-in, so the same kWh is worth less. On top of that, a New York City roof makes about 9,364 kWh a year from a 7 kW system while an upstate Buffalo roof makes about 8,399 kWh (NREL PVWatts, August 2026), because downstate sees more annual sun and less lake-effect cloud and snow. Higher rate times more production is why downstate payback is roughly half the upstate number.
The practical read: if you are served by Con Edison or PSEG Long Island, solar is one of the strongest home investments available to you, and the payback math is not close. If you are on an upstate utility like National Grid, solar still pays over the life of the system, but the case leans harder on the NY-Sun rebate, on rising rates, and on right-sizing the array. For the full rate breakdown by utility, see our New York electricity rates for 2026, and for local cost detail see the Buffalo solar guide.
What incentives cut the cost of solar in New York
New York offers something most states do not: a 25% state income tax credit that stacks with net metering and the NY-Sun rebate, even though the federal 25D homeowner credit ended after December 31, 2025.
The New York Solar Energy System Equipment Credit is worth 25% of your system cost, capped at $5,000, nonrefundable with a 5-year carryforward, and it applies to a purchase, or a lease or power-purchase agreement of at least 10 years (NY Department of Taxation and Finance, as of 2026). That 10-year minimum for lease and PPA is a real rule, not a formality, so a short-term agreement does not qualify. On top of that, net metering credits your exports at the retail rate, and the NY-Sun program adds an up-front rebate per watt that steps down over time and varies by region (NYSERDA, as of 2026).
| Incentive | What it is worth | Who receives it |
|---|---|---|
| New York Solar Energy System Equipment Credit | 25% of system cost, capped at $5,000, nonrefundable with a 5-year carryforward | The homeowner; also available on qualifying leases and PPAs of at least 10 years |
| Net metering / VDER credits | Credit against your bill for exported power; newer systems increasingly on the VDER Value Stack, with year-end surplus valued below full retail | The utility account holder |
| NY-Sun rebate | An up-front incentive per watt that steps down by megawatt block and varies by region | Usually passed through to the homeowner by the installer |
| Federal residential credit (Section 25D) | Ended for systems placed in service after December 31, 2025 | Not available to 2026 homeowner-buyers |
One federal detail is worth stating plainly so a quote does not mislead you. A separate commercial credit, Section 48E, can apply to a leased or PPA system, but the company that owns the panels claims it, not the homeowner (IRS, as of 2026). On a lease or PPA you do not file for a federal credit yourself, though you may still qualify for New York’s 25% state credit. The 25D federal homeowner credit, by contrast, ended after December 31, 2025. For the full picture of what remains, see New York solar tax credits and solar incentives that still cut your cost.
How to pressure-test a New York solar quote against your own rate
Because your utility rate is the thing solar competes with, the smartest way to judge cost and worth-it is to start from your own bill, then compare quotes on objective terms rather than a “best installer” list. When you weigh quotes:
- Start from your all-in rate, not the supply rate. Divide a recent bill’s total dollars by the kWh used, then ask each installer to model payback against that number and your real usage. This matters most downstate, where the all-in rate is far above the supply-only figure.
- Confirm the quote uses 2026 rules. A quote should reflect current net-metering or VDER terms and New York’s 25% state credit, and it must not lean on the federal residential credit that ended after December 31, 2025. A quote built on that ended credit is not comparable to one built on 2026 reality.
- Screen every installer the same way. Look for NABCEP certification, valid New York licensing and contractor registration, a written workmanship and equipment warranty, and real experience with your utility’s interconnection. For a full checklist, see the right questions to ask a solar installer.
- Compare ownership paths honestly. Cash and loan keep the most lifetime savings and the full state credit; a lease or PPA can mean no up-front cost for eligible homeowners and can still qualify for New York’s state credit at a 10-year-plus term, but it is a long-term agreement with monthly payments, not free solar. See whether solar panels are worth it and how much homeowners save on energy with solar.
New York has a deep, competitive installer market across Long Island, New York City, the Hudson Valley, and upstate, which is good for pricing. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. To see how we build these numbers, read how MySolarFY works and our data and methodology, and for the full state picture start at our New York solar guide.
See what solar costs and pays back at your New York address →
Frequently asked questions
How much do solar panels cost in New York in 2026?
A typical 7 to 8 kW New York home system costs about $23,000 before incentives in 2026. We model that at roughly $3.30 per watt from the national residential benchmark of about $3.35 per watt in late 2025 (SEIA), with New York running at or above that. After New York’s 25% state credit, capped at $5,000, the net cost lands near $18,100, and the NY-Sun rebate can lower it further. The federal 25D credit ended after December 31, 2025, so a 2026 cash or loan buyer does not get it. Your real quote depends on panels, roof, and installer, so compare local quotes.
Is solar worth it in New York?
Yes, and it is clearly worth it downstate, where high Con Edison and PSEG Long Island rates plus strong sun pay a system back in about 6 to 7 years, well inside the 25-year panel life. Upstate it is still worth it but a closer call: lower rates and a bit less sun stretch payback to roughly 11 to 14 years, so the case leans more on the NY-Sun rebate, rising rates, and right-sizing the array. In both cases the state’s 25% credit and net metering carry the economics now that the federal homeowner credit has ended.
What is the solar payback period in New York?
Simple payback on a typical 7 kW system, about $18,100 net after the 25% state credit, is roughly 6 to 7 years in New York City and about 11 to 14 years upstate (MySolarFY analysis, August 2026). The gap comes from two levers: downstate you erase a rate near 30 cents per kWh and capture about 9,364 kWh a year, while upstate you erase a high-teens to low-20s rate and capture closer to 8,399 kWh (NREL PVWatts). Your own payback depends on your installed price, roof, usage, and utility, so treat these as estimates and check your address.
Why is solar payback faster in New York City than upstate?
Because two things stack in New York City’s favor: the electricity rate you erase and the sun you capture are both higher. Con Edison bills run into the low 30s cents per kWh all-in, versus the high teens to low 20s upstate, so each solar kWh is worth more downstate (Con Edison, 2026). A New York City roof also makes about 9,364 kWh a year from a 7 kW system while an upstate Buffalo roof makes about 8,399 kWh, because downstate sees more annual sun and less lake-effect cloud and snow (NREL PVWatts). Higher rate times more production roughly halves the downstate payback.
Did the 30% federal solar tax credit end for New York homeowners?
Yes. 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 (IRS, as of January 2026), so a New York homeowner who buys with cash or a loan in 2026 cannot claim it. New York’s own 25% state credit, capped at $5,000, is a separate program and is still active in 2026 (NY Department of Taxation and Finance), and net metering and NY-Sun were not affected, so the state-level case for solar holds up on its own.
Does the New York 25% solar tax credit apply to a lease or PPA?
Yes, with a condition. New York’s Solar Energy System Equipment Credit, worth 25% of system cost up to $5,000, applies to a purchase, a qualifying lease, or a power-purchase agreement, but the lease or PPA must run at least 10 years to qualify (NY Department of Taxation and Finance, as of 2026). That 10-year minimum is a real requirement, so a short-term agreement does not count. On a lease or PPA you do not claim the federal credit yourself, and the federal 25D homeowner credit ended after December 31, 2025, but this New York state credit can still apply to you.
Reviewed by the SolarFY editorial team. Figures were verified against the linked EIA Electric Power Monthly (Table 5.6.A), NREL PVWatts, SEIA U.S. Solar Market Insight, the New York Department of Taxation and Finance, NYSERDA, the New York Department of Public Service, Con Edison, and IRS sources as of August 2026. Installed prices, utility rates, the NY-Sun rebate, and net-metering terms change on their own schedules, and net metering is transitioning to VDER, so confirm current terms with your installer, utility, and NYSERDA before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, a utility, an electricity supplier, a financing company, or a 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. Homeowners do not get the federal residential credit that ended after December 31, 2025, though New York’s separate 25% state credit may still apply on a purchase or a 10-year-plus lease or PPA. Solar panels are not free and monthly payments apply. Electricity rates, incentives, savings, and net-metering terms vary by utility and are not guaranteed. See our full disclaimer.
