Yes, solar is generally worth it in New York in 2026: a typical 7 kW system pays back in about 9 years at the state’s roughly 28.6 cents per kWh rate, before New York’s 25 percent state tax credit worth up to $5,000. New York homeowners weighing solar want real numbers, not a sales pitch, so this page gathers the ones that matter in one place, each dated and sourced. The average residential electricity rate here is about 28.6 cents per kWh (EIA, as of March 2026), and a typical 7 kW rooftop system produces about 9,364 kWh a year (modeled at a New York City ZIP; upstate cities run a bit lower, see the city table). On top of that, New York keeps a 25 percent state tax credit worth up to $5,000. Below you will find installed cost, simple payback, per-city production, how each utility handles net metering, and the current state incentives, updated for 2026.
Updated for 2026.
Key statistics: New York solar at a glance (2026)
Key numbers (New York, 2026)
- Average residential rate: 28.6 cents per kWh
- Typical system size: 7 kW
- Typical annual production: 9,364 kWh per year
- Typical installed cost: $2.85 to $3.50 per watt
- Estimated system cost: $19,950 to $24,500
- Simple payback: about 9 years
- New York State tax credit: 25% of cost, capped at $5,000
According to MySolarFY’s analysis (July 2026), a typical 7 kW system in New York produces about 9,364 kWh a year, offsetting power that costs about 28.6 cents per kWh. These are our own compiled figures for New York; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our New York solar guide.
| Metric | Value | Source (dated) |
|---|---|---|
| Average residential rate | 28.6 cents per kWh | EIA, as of March 2026 |
| Typical system size | 7 kW | MySolarFY, typical residential array |
| Typical annual production | 9,364 kWh per year | NREL PVWatts v8, as of July 2026 |
| Typical installed cost | $2.85 to $3.50 per watt | MySolarFY cost range, as of July 2026 |
| Estimated system cost | $19,950 to $24,500 | MySolarFY, 7 kW, as of July 2026 |
| Simple payback | about 9 years | MySolarFY analysis, as of July 2026 |
| New York State tax credit | 25% of cost, capped at $5,000 | NY Dept of Taxation and Finance, as of July 2026 |
Every figure is dated and attributed. Rate is the EIA residential average for New York; production is a modeled NREL PVWatts v8 run for a 7 kW array at a New York City ZIP; cost and payback are MySolarFY estimates for planning, not a quote. Confirm current terms before you decide.
Want the numbers for your own roof? Check your New York ZIP to see the incentives, net-metering credits, and licensed installers that serve your address.
Solar cost and payback by city in New York
Production and payback vary within a state because the solar resource, the serving utility, and the local rate shift by location. The table below models a 7 kW system for representative New York cities using NREL PVWatts v8.
| City | System size | Annual production | Est. system cost | Est. annual bill savings | Simple payback |
|---|---|---|---|---|---|
| New York City | 7 kW | 9,364 kWh per year | $22,200 | about $2,560 | about 8.7 years |
| Buffalo | 7 kW | 8,399 kWh per year | $22,200 | about $2,320 | about 9.6 years |
| Rochester | 7 kW | 8,394 kWh per year | $22,200 | about $2,290 | about 9.7 years |
| Albany | 7 kW | 8,576 kWh per year | $22,200 | about $2,370 | about 9.4 years |
Production is a modeled NREL PVWatts v8 run per city ZIP. Bill savings value each net-metered kWh at New York’s full retail rate (about 28.6 cents) under Phase One net metering, then subtract the serving utility’s 2026 Customer Benefit Contribution (about $1.41 per kW per month for Con Edison in New York City, $1.31 for RG&E in Rochester, and $0.97 for National Grid upstate in Buffalo and Albany); power you use on-site offsets at the full retail rate. Payback is the system cost divided by that net savings, holding today’s rate flat and ignoring financing. The rate is held at the EIA statewide residential average for comparability, so the only per-city variable here is production; actual delivery rates differ by utility, shown in the utility table below. A written quote for your roof beats any table.
Utility rate and net metering comparison
Your utility sets the delivery rate and administers net metering, which is the credit you earn for the power your roof sends back to the grid. For a typical New York home, that credit is Phase One net metering at close to the full retail rate; see our New York net metering and VDER guide for the mechanics and the monthly Customer Benefit Contribution. See also how net metering credits your solar exports.
| Utility | Residential rate | Net metering treatment |
|---|---|---|
| Con Edison (New York City, Westchester) | About 28.6 cents per kWh (EIA statewide residential average, March 2026) | Phase One net metering near the full retail rate for residential systems up to 25 kW, 20-year term. A monthly Customer Benefit Contribution of about $1.41 per kW of system size applies to systems interconnected on or after January 1, 2022. A homeowner may instead elect the VDER Value Stack. |
| National Grid (Upstate New York) | About 28.6 cents per kWh (EIA statewide residential average, March 2026) | Phase One net metering near the full retail rate for residential systems up to 25 kW, 20-year term. Monthly Customer Benefit Contribution of about $0.97 per kW for systems interconnected on or after January 1, 2022. Value Stack is available as an option. |
| NYSEG | About 28.6 cents per kWh (EIA statewide residential average, March 2026) | Phase One net metering near the full retail rate, up to 25 kW. Monthly Customer Benefit Contribution of about $1.19 per kW for post-2022 systems. Value Stack optional. |
| RG&E (Rochester) | About 28.6 cents per kWh (EIA statewide residential average, March 2026) | Phase One net metering near the full retail rate, up to 25 kW. Monthly Customer Benefit Contribution of about $1.31 per kW for post-2022 systems. Value Stack optional. |
| Central Hudson | About 28.6 cents per kWh (EIA statewide residential average, March 2026) | Phase One net metering near the full retail rate, up to 25 kW. Monthly Customer Benefit Contribution of about $1.67 per kW for post-2022 systems. Value Stack optional. |
| Orange & Rockland | About 28.6 cents per kWh (EIA statewide residential average, March 2026) | Phase One net metering near the full retail rate, up to 25 kW. Monthly Customer Benefit Contribution of about $1.00 per kW for post-2022 systems. Value Stack optional. |
| PSEG Long Island (LIPA) | Local LIPA rate; not part of the PSC investor-owned framework | Net metering under LIPA’s own tariff for residential systems up to 25 kW, with a 20-year energy credit bank. LIPA is not regulated by the state Public Service Commission, so the PSC Customer Benefit Contribution does not apply on Long Island. |
Net metering rules are set by state law and the utility commission, not the installer. Con Edison, National Grid, NYSEG, RG&E, Central Hudson, and Orange & Rockland are the six investor-owned utilities the New York PSC regulates; PSEG Long Island runs the LIPA tariff separately. Customer Benefit Contribution rates are 2026 figures that vary by utility and can change, so confirm your utility’s current tariff before you size a system.
New York solar incentive stack (2026)
State programs, net metering, and any rebates make up the New York incentive stack; for the full breakdown see our New York solar tax credits guide and our NY-Sun incentive guide. These go to the system owner, so on a lease or PPA the company that owns the panels keeps the rebate while the net-metering bill credit follows your account.
New York State Solar Energy System Equipment Credit
A state income tax credit of 25 percent of your system cost, capped at $5,000; nonrefundable with a 5-year carry-forward. It applies to purchased systems and also to written leases or PPAs of at least 10 years, where it is taken over multiple years and stops after year 15. This New York State credit is active in 2026 and is entirely separate from the federal Residential Clean Energy Credit, which ended December 31, 2025 (NY Dept of Taxation and Finance, as of July 2026)
Phase One net metering
Residential systems up to 25 kW are credited for exported power at close to the full retail rate, kilowatt-hour for kilowatt-hour, for a 20-year term. A monthly Customer Benefit Contribution applies to systems interconnected on or after January 1, 2022 and varies by utility. A homeowner may instead elect the VDER Value Stack (active 2026) (NY PSC / Dept of Public Service, as of July 2026)
NY-Sun (NYSERDA Megawatt Block)
A declining per-watt rebate paid by NYSERDA to your installer as an upfront discount. In 2026 the standard residential blocks remain open only in the Upstate region; the Con Edison and Long Island standard residential blocks are fully allocated. Income-eligible households (at or below 80% of area median income) can still get about $0.80 per watt in the Con Edison and Upstate regions and about $0.40 per watt on Long Island. Confirm today’s values on the NYSERDA dashboard (active, limited 2026) (NYSERDA, as of July 2026)
New York State sales-tax exemption
Residential solar energy systems equipment and its installation are exempt from the 4 percent New York State sales and use tax; localities may opt in to exempt their local tax too, and where they have not, local tax still applies (active) (NY Dept of Taxation and Finance, as of July 2026)
Real property tax exemption (RPTL Section 487)
A 15-year exemption from the added property-tax value your solar system creates. It is a local-option exemption that counties, cities, towns, villages, and school districts can opt out of, so confirm your jurisdiction, and the statute currently has a January 1, 2030 construction deadline (active) (NY Dept of Taxation and Finance, as of July 2026)
New York City Solar Property-Tax Abatement
For New York City property only: an abatement of 7.5 percent of eligible installation cost per year for four years, about 30 percent in total, for systems placed in service through January 1, 2035, credited against your property tax bill. File before January 1, 2036 (active 2026, NYC only) (NYC Dept of Finance, as of July 2026)
Federal Residential Clean Energy Credit (Section 25D)
Ended December 31, 2025 and is not available to homeowners who buy solar in 2026, so no federal credit reduces the cost for cash or loan buyers (ended 12/31/2025) (IRS, as of July 2026)
The federal homeowner credit has ended, but New York’s programs have not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a New York homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). New York’s own 25 percent state tax credit, its net metering, and the incentives listed above were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.
Methodology and sources
- Electricity rate: the latest EIA residential retail price for New York (EIA retail sales, as of March 2026).
- Production: modeled with NREL PVWatts v8 for a 7 kW south-facing array at each city ZIP; the statewide typical is anchored to a New York City ZIP, and the upstate cities in the table produce somewhat less (NREL PVWatts v8, as of July 2026).
- Cost and payback: MySolarFY estimates built from installed cost per watt (informed by the DataForSEO cost SERP for New York) and the EIA rate, valuing net-metered exports at the full retail rate under Phase One net metering, subtracting the serving utility’s 2026 Customer Benefit Contribution, holding today’s rate flat, and ignoring financing.
- Net metering and Customer Benefit Contribution: the New York Public Service Commission / Department of Public Service and the utility tariffs; a home-sized system defaults to Phase One net metering with the CBC, and may elect the VDER Value Stack (NY DPS distributed energy resources, as of July 2026).
- Incentives: NYSERDA for NY-Sun (NY-Sun), the NY Department of Taxation and Finance for the state credit and exemptions (Solar Energy System Equipment Credit), and the NYC Department of Finance for the city abatement, all as of July 2026.
- Assumptions: a 7 kW system, standard losses, and a south-facing array. Your roof, usage, utility, and financing change the result, so treat these as planning figures, not a quote.
Citing this data
Citing this data?
Cite as: “MySolarFY, New York Solar Data & Statistics 2026, accessed July 19, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), the NY Public Service Commission and NYSERDA (net metering and incentives), the NY Department of Taxation and Finance (state credit and exemptions), and DataForSEO (cost SERP). Figures are dated in each table above.
Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/new-york-solar-data-statistics-2026/.
See what solar programs are available in your New York ZIP code
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How to choose a solar installer in New York
Rather than chasing a “best installer” list, screen any company against objective criteria: NABCEP certification, a valid state license, a written workmanship and equipment warranty, real experience with your utility’s interconnection, and a transparent quote that uses today’s incentive values. For a checklist, see the right questions to ask a solar installer. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. To compare with a neighboring state, see our Rhode Island solar data page.
Frequently asked questions
What is the average solar cost in New York in 2026? A typical residential system in New York runs about $2.85 to $3.50 per watt installed before any incentives (MySolarFY cost range, as of July 2026). A 7 kW system is a common size for a single-family home, roughly $19,950 to $24,500. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.
How does New York credit the solar power my roof sends back? A typical New York home is on Phase One net metering, credited for exported power at close to the full retail rate for a 20-year term on systems up to 25 kW (NY PSC, as of July 2026). A monthly Customer Benefit Contribution applies to systems interconnected on or after January 1, 2022 and varies by utility, and a homeowner may instead elect the VDER Value Stack, which is aimed more at larger and community projects.
Does New York have its own solar tax credit in 2026? Yes. New York’s Solar Energy System Equipment Credit is 25 percent of your system cost, capped at $5,000, with a 5-year carry-forward (NY Dept of Taxation and Finance, as of July 2026). It applies to purchased systems and to qualifying long-term leases and PPAs, and it is entirely separate from the federal Residential Clean Energy Credit that ended December 31, 2025.
Did the federal solar tax credit end? Yes for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a New York homeowner who buys solar in 2026 cannot claim it (IRS, as of 2026). New York’s 25 percent state credit, net metering, and the state exemptions were not affected by that change.
Reviewed by the SolarFY Editorial Team. Figures were verified against the linked EIA, NREL, NY PSC, NYSERDA, and NY Department of Taxation and Finance sources as of July 2026, following our data and methodology standards; rates, incentive values, and net-metering terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. 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, financing company, or government program. Solar panels are not free and any monthly payments apply. “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 may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
