Newburgh sits in the mid-Hudson Valley, in Central Hudson Gas & Electric territory, and pays New York’s higher-than-average electricity prices, which is the main reason rooftop solar pays off here. The wrinkles in an older Hudson River city are local: who your utility is, one charge that is the highest of its kind in the state, and whether your 19th-century home needs an electrical-panel or historic-review step first. This page covers what solar actually costs in Newburgh, the New York incentives you may qualify for, how Central Hudson credits the power you send back, and the local hurdles to plan around, then you can check your address in about a minute.
The 60-second answer for Newburgh (2026)
- Central Hudson power is expensive, which is what makes solar pay. New York residential electricity averages about 28.55 cents per kWh (EIA, as of March 2026), above the national average.
- A typical Newburgh roof makes real power. A 6 kW system at ZIP 12550 produces about 7,567 kWh a year (NREL PVWatts, as of July 2026).
- Your utility is Central Hudson Gas & Electric, so your net metering and one Newburgh-specific charge run through Central Hudson (Central Hudson, as of July 2026).
- Central Hudson has the highest solar CBC charge in New York, $1.67 per kW of system size per month for 2026 (NYSERDA 2026 CBC schedule, as of April 2026).
- New York gives a 25% state tax credit, capped at $5,000, on a qualifying home solar system (NYS Tax & Finance, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so a Newburgh homeowner who buys solar in 2026 cannot claim it.
Why Newburgh’s electric rates make solar worth it
The reason solar pays in Newburgh is the price of the power it replaces. New York residential electricity averages about 28.55 cents per kWh (EIA, as of March 2026), above the national average, and Central Hudson’s delivery-plus-supply bills sit in that upper range. So every kilowatt-hour your roof makes offsets an expensive one you would otherwise buy from the grid. A Newburgh home spending $130 or more a month on electricity is a strong solar candidate. For the exact cents on your own bill, read the supply and delivery lines on your Central Hudson statement, since both reset on a schedule.
Your production is what turns that high rate into savings. A 6 kW system at ZIP 12550 is modeled to produce about 7,567 kWh a year, with a solar resource of 4.61 peak sun-hours a day (NREL PVWatts, as of July 2026). Because output depends on your roof’s pitch, shading, and orientation, and the Hudson Valley’s tree cover and hillsides add real shading, estimate your specific roof with NREL’s free PVWatts calculator rather than a generic number. Your production drives your net-metering credits, so it is worth getting right before you size a system.
See what solar programs are available in your Newburgh ZIP code
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Your Newburgh utility is Central Hudson Gas & Electric
For solar, your electric utility is Central Hudson Gas & Electric. Central Hudson serves the mid-Hudson Valley, including the City and Town of Newburgh and most of Orange County, and New York gives each utility an exclusive electric-delivery territory, so your net metering, your interconnection, and one Newburgh-specific solar charge are all administered by Central Hudson (Central Hudson, as of July 2026). This is a different utility from Con Edison, which serves New York City and parts of Westchester, and from Orange & Rockland, so the rates, the credits, and the charges on this page are the Central Hudson ones, not the downstate ones. For the full utility picture, including interconnection and the customer-side steps, see our Central Hudson solar guide.
How Central Hudson credits the power your Newburgh roof sends back
Net metering is the engine of your savings, and in Central Hudson territory a normal home is credited near full retail value. New York keeps mass-market residential systems, 25 kW or less, on Phase One net metering, where the power you export is netted against the power you import at close to the full retail rate, and enrolled systems are grandfathered for 20 years (NYSERDA / value of distributed energy resources, as of April 2026). Net metering is one method inside New York’s broader Value of Distributed Energy Resources (VDER) framework; larger and non-residential systems are compensated on the VDER Value Stack instead. For the mechanics of how exports become credits, see our New York net metering and VDER guide and the plain-English how net metering works.
Here is the Newburgh catch worth knowing before you sign anything: Central Hudson has the highest solar CBC charge in New York. The Customer Benefit Contribution (CBC) is a fixed monthly charge, based on your system’s size, that net-metered solar customers pay, and for 2026 Central Hudson’s residential CBC is $1.67 per kW of system size per month, the highest of any major New York utility (NYSERDA 2026 CBC schedule, as of April 2026). On a 6 kW system that is about $10 a month, or roughly $120 a year, shaved off your net savings. It does not change the 1-for-1 value of the power you export, and it is why the honest payback math below builds the CBC in rather than ignoring it.
| Central Hudson solar customer | 2026 residential CBC | For context |
|---|---|---|
| Central Hudson (Newburgh) | $1.67 per kW per month | Highest in NY |
| RG&E | $1.31 per kW per month | Upstate |
| Con Edison (NYC / Westchester) | $1.29 per kW per month | Downstate |
| National Grid | $0.97 per kW per month | Lowest of the majors |
Source: NYSERDA 2026 Utility-Published CBC Rates, as of April 2026.
What solar really costs and saves in Newburgh (our estimate)
Here is our own payback math for Newburgh, built from the real local numbers on this page, not a national average. We take the PVWatts production for ZIP 12550, value it at New York’s 28.55 cents per kWh, subtract Central Hudson’s $1.67 per kW-month CBC, and apply New York’s 25% state tax credit against a typical installed price. This is an estimate to frame the decision, not a quote. It deliberately excludes any NY-Sun rebate (the standard residential block is winding down, see below) and any federal credit (the homeowner credit ended after 2025).
| Input (MySolarFY estimate, as of July 2026) | 6 kW system | 8 kW system |
|---|---|---|
| Annual production, ZIP 12550 (PVWatts) | ~7,567 kWh | ~10,090 kWh |
| Yearly bill offset at 28.55 cents/kWh (EIA) | ~$2,160 | ~$2,880 |
| Less Central Hudson CBC ($1.67/kW-month) | −$120 | −$160 |
| Net yearly benefit | ~$2,040 | ~$2,720 |
| Gross install price at ~$2.80/W (ConsumerAffairs NY, 2026) | ~$16,800 | ~$22,400 |
| Less New York 25% state tax credit (max $5,000) | −$4,200 | −$5,000 |
| Net cost after state credit | ~$12,600 | ~$17,400 |
| Simple payback | ~6.2 years | ~6.4 years |
Assumptions and honesty check: installed prices in New York run roughly $2.76 to $3.30 per watt (ConsumerAffairs, as of 2026), so at the higher end payback stretches toward 7 to 8 years. The two local frictions this page flags move that range in the same direction: on a 6 kW system, going from the $2.80/W base to the higher $3.30/W end lifts the net cost from about $12,600 to roughly $14,850 and pushes payback from about 6.2 years toward 7.3, and a service-panel upgrade or a historic-district permit adds cost and a few weeks on top, so a Newburgh homeowner in the East End district should plan on the upper end of the range rather than the headline figure. The math assumes you own the system (cash or loan) so you keep the state credit, uses simple payback rather than a discounted return, and ignores future rate increases that would shorten it. Plug your own quote and usage into the same steps, or check what you qualify for, before deciding. For a deeper look at the long-run numbers, see are solar panels worth it.
New York solar incentives on a Newburgh home
Beyond net metering, a Newburgh homeowner can stack New York’s statewide benefits, which we cover in full on our New York solar guide. These go to the system owner, so on a lease or PPA the company that owns the panels keeps them, while the net-metering bill credit still follows your Central Hudson account.
- New York State’s 25% solar tax credit. New York gives a personal income-tax credit worth 25% of a qualifying solar system’s cost, capped at $5,000, claimed on Form IT-255. It is non-refundable but you can carry any unused amount forward for up to five years (NYS Tax & Finance, as of 2026). This is a New York State credit and is separate from the expired federal 25D credit, which ended December 31, 2025.
- A 15-year property-tax exemption (RPTL Section 487). New York exempts the added home value from a qualifying solar system from property tax for 15 years, so your assessment does not jump because you installed panels. It applies to the increase in assessed value, and a municipality or school district may opt out or ask for a payment-in-lieu-of-taxes (PILOT) agreement, so confirm your local status (NYSERDA RPTL 487, as of 2026).
- NY-Sun, but read this carefully. NY-Sun is New York’s upfront per-watt rebate program, run in “Megawatt Blocks” that fill up and close. For standard (non-income-qualified) residential customers the program is winding down, and Central Hudson is on its final residential block, so a new Newburgh homeowner may find a small rebate or none by the time they install (NYSERDA NY-Sun dashboards, as of July 2026). Income-qualified households may still qualify for Affordable Solar or the Solar Energy Equity Framework. Confirm the current Central Hudson block on the live dashboard; we do not count a NY-Sun rebate in the payback math above. For the current picture, see our New York NY-Sun incentive guide.
What the federal tax-credit change means for Newburgh
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 Newburgh 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 asking whether the 30% credit is going away; the accurate answer for 2026 is that the homeowner version already ended. New York’s net metering and its 25% state tax credit were not affected, and at Central Hudson’s rates the bill offset alone is substantial. For the full timeline, see what the federal solar tax credit change means in 2026. MySolarFY does not provide tax advice; confirm your own situation with a tax professional.
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 system you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
Going solar on an older Newburgh home
Newburgh’s older housing stock is what makes its solar projects distinct. Newburgh is a historic Hudson River city with a large stock of older homes, many of which predate modern electrical service, so two checks a newer suburban home usually skips come up often (City of Newburgh, as of July 2026; ENERGY STAR panel-upgrade guidance, as of 2026). First, an older home may still run a smaller or dated electrical service panel that needs an upgrade to carry a modern solar system, especially if you also want a battery, EV charging, or heat pumps. Second, an older roof usually needs a structural look before panels go on, and a slate or steep older roof changes how an array is mounted and priced.
Note on Newburgh’s historic districts: Newburgh’s East End Historic District is a large local historic district listed on the National Register of Historic Places (1985). If your home is in a locally regulated historic district, exterior changes visible from the street, including rooftop solar, can require a Certificate of Appropriateness from the City’s Architectural Review Commission before installation, and street-facing panels are often restricted to rear roof planes, which adds time to the schedule (City of Newburgh, as of July 2026). An installer who has done Newburgh historic-district projects will prepare the drawings and photos for you. Confirm your address with the City before you assume a timeline.
A Newburgh permitting note: New York offers a Unified Solar Permit, a streamlined building-and-electrical permit that many municipalities have adopted for residential rooftop systems of 25 kW or less. But a key eligibility condition is that the project is not subject to historic or architectural review, so a home in Newburgh’s historic district generally cannot use the streamlined permit and follows the City’s standard permit-plus-review path instead (NYSERDA Solar Guidebook, Unified Solar Permit, as of July 2026). Ask your installer which path your specific address falls under.
| Newburgh roof or site factor | What to plan for |
|---|---|
| Older / dated electrical service panel | May require a service upgrade for solar plus a battery or EV charging |
| Older or slate roof | A structural check and mounting suited to the roof type |
| East End (or other local historic) district | Certificate of Appropriateness from the Architectural Review Commission; rear-plane placement clears more smoothly; adds weeks |
| Unified Solar Permit eligibility | Available for many homes but not for historic-review addresses |
| Hudson Valley shading (trees, hillsides) | A shade study; fewer, higher-efficiency panels may beat a larger array |
Paying for solar in Newburgh: 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 state 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, and the system owner, not you, collects New York’s 25% state tax credit. To weigh the long-run numbers, see are solar panels worth it.
| Path | Up-front cost | Who keeps the NY 25% state 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 | $0-up-front where eligible | The third-party owner | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer in Newburgh
The mid-Hudson has a mix of local Hudson Valley installers and larger regional companies, 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 electrical / home-improvement license and proper insurance.
- A clear workmanship and equipment warranty in writing.
- Real experience with Central Hudson interconnection, Orange County and City of Newburgh permitting, and historic-district review if your home needs it, so the paperwork and permission to operate go smoothly.
- A written production estimate and a transparent quote that builds in the Central Hudson CBC and does not assume the expired federal 25D credit, which ended December 31, 2025, or a NY-Sun rebate that may no longer apply. 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. See how MySolarFY works and our data and methodology.
Check which solar programs are available at your Newburgh address →
Frequently asked questions
Are solar panels worth it in Newburgh, NY?
For most owner-occupied Newburgh homes with decent sun, yes. New York residential electricity averages about 28.55 cents per kWh (EIA, as of March 2026), above the national average, so every kilowatt-hour your roof makes offsets an expensive grid one. By our estimate a typical 6 kW system at ZIP 12550 offsets around $2,000 a year after Central Hudson’s CBC charge and pays back in about six to seven years once New York’s 25% state credit is applied. Savings are not guaranteed and depend on your roof, usage, and how you pay, but the high local rate makes Newburgh a strong solar market.
Who is my electric utility for solar in Newburgh?
Central Hudson Gas & Electric. It serves the City and Town of Newburgh and most of Orange County, and New York utility territories do not overlap, so your net metering, interconnection, and the Customer Benefit Contribution charge are all administered by Central Hudson (Central Hudson, as of July 2026). This is a different utility from Con Edison and Orange & Rockland, so use the Central Hudson rates and rules, which our Central Hudson solar guide covers in full.
What is the CBC charge and why does Newburgh pay more?
The Customer Benefit Contribution is a fixed monthly charge, based on system size, that net-metered solar customers in New York pay. Central Hudson’s 2026 residential CBC is $1.67 per kW of system size per month, the highest of any major New York utility (NYSERDA 2026 CBC schedule, as of April 2026). On a 6 kW system that is about $10 a month. It does not change the near-retail value of the power you export, but a good quote builds it into the savings estimate rather than ignoring it.
Is solar ever free in New York?
No, solar is not free in New York. Some Newburgh homeowners can install with no up-front cost through a lease or power purchase agreement (PPA), which trades a monthly payment for the electricity, but that is a long-term contract, not a giveaway, and the company that owns the panels keeps New York’s 25% state tax credit. New York’s NY-Sun rebate and its state tax credit can lower a purchase, but the standard residential NY-Sun block is winding down, so confirm what is currently available (NYSERDA NY-Sun, as of July 2026).
Do I need historic-district approval for solar in Newburgh?
Only if your property is in a locally regulated historic district, such as the East End Historic District, which is listed on the National Register of Historic Places. There, exterior changes visible from the street, including rooftop solar, can require a Certificate of Appropriateness from the City’s Architectural Review Commission before installation, and a home in that district generally cannot use New York’s streamlined Unified Solar Permit (City of Newburgh, as of July 2026). Panels on a rear or less-visible roof plane usually clear review most smoothly. Confirm your address with the City, and pick an installer who has handled Newburgh historic-district work.
What happened to the federal solar tax 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, so a Newburgh 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 net metering and its 25% state tax credit were not affected, so the local payback case still holds. MySolarFY does not provide tax advice; consult a tax professional.
Can I get solar with no up-front cost in Newburgh?
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, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. On a lease or PPA the third-party owner, not you, collects New York’s 25% state tax credit, while your benefit is a lower or fixed power price. If you want to own the system and capture that credit yourself, a cash purchase or solar loan is the path that keeps it. Check what you qualify for before deciding.
About this guide. Written and reviewed by the SolarFY Editorial team. Figures are sourced from EIA (electricity rate), NREL PVWatts (production), NYSERDA (CBC schedule, RPTL 487, NY-Sun), the New York State Department of Taxation and Finance (state credit), and the City of Newburgh, each cited inline with an “as of” date. Last reviewed July 2026.
MySolarFY is not a solar installer and does not provide tax advice. We are a free service that matches homeowners with licensed installers in their area. Solar savings depend on your roof, usage, utility, and financing, and are not guaranteed. “$0-up-front” options refer to lease/PPA financing where eligible; these are long-term agreements that may include an annual escalator, may cost more over time than a cash purchase, and are not free solar. The federal 25D homeowner tax credit ended December 31, 2025. Confirm incentives and your tax situation with a qualified professional before deciding.