Usually, yes. PSEG Long Island charges about 28.55 cents per kWh (EIA, as of March 2026), one of the highest residential rates in the country, so rooftop solar tends to pay off fast here. According to MySolarFY’s analysis (July 2026), a typical 8 kW Long Island system produces about 10,800 kWh a year (NREL PVWatts, Hempstead), offsets roughly $3,050 a year through PSEG Long Island’s full net metering, and pays back in about 6 years after New York’s 25% state tax credit (capped at $5,000). The federal 25D tax credit ended after December 31, 2025, so 2026 buyers cannot claim it.
- PSEG Long Island credits exported power through full net metering, but on time-of-day rates those credits sit in separate peak and off-peak banks measured in kWh (PSEG Long Island, as of 2026).
- You can request to move credits between your peak and off-peak banks, so cheaper off-peak credits can offset costly 3pm to 7pm peak usage (PSEG Long Island time-of-day tips, as of 2026).
- New York’s state solar credit is 25% of system cost, capped at $5,000, and the 2026 proposal to raise that cap did not pass (NY Dept. of Taxation and Finance, as of March 2026).
- Long Island homes can add a block-based upfront battery storage incentive that pairs with PSEG Long Island’s Battery Storage Rewards program (NYSERDA, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of 2026), so most 2026 buyers cannot claim it.
Estimate, not a quote. Assumes an 8 kW system at about $2.90 per watt installed (roughly $23,200 before incentives), NREL PVWatts production modeled for Hempstead, and New York’s average residential rate. Your quote and payback vary by roof, usage, equipment, and installer.
If PSEG Long Island is your electric utility, this page explains what rooftop solar costs, what it saves, and how your credits work in 2026. PSEG Long Island net metering runs as full net metering, but because most residential customers are now on time-of-day rates, the credits you earn for exported power are tracked in separate time-of-day banks, and you can ask PSEG Long Island to move credits between your peak and off-peak banks. Below we walk through the price and payback math, the time-of-day banks, the battery incentive, the New York credits you can stack, and how to connect.
PSEG Long Island at a glance
PSEG Long Island operates the Long Island Power Authority (LIPA) electric system and is the interconnection authority for the whole region. If your roof is in its territory, your solar uses PSEG Long Island’s rules, not Con Edison’s and not PSE&G New Jersey’s.
| Detail | What to know |
|---|---|
| Service territory | All of Nassau County, all of Suffolk County, and the Rockaway Peninsula in Queens (PSEG Long Island SGIP) |
| Rate context | New York residential power averages about 28.55 cents per kWh (EIA, March 2026), among the highest in the country |
| Net metering | Full net metering; on time-of-day rates, credits accrue in separate peak and off-peak banks |
| Bank transfer | You can ask PSEG Long Island to move credits between your peak and off-peak banks |
| Battery storage | A block-based upfront incentive that pairs with the Battery Storage Rewards program |
| Before you switch on | PSEG Long Island must grant Permission to Operate (PTO) |
What solar costs and saves on Long Island in 2026
Long Island’s high power prices are what make the math work. A typical residential system on Long Island runs about $2.70 to $3.20 per watt installed before incentives in 2026, so a common 7 kW to 8 kW system lands near $20,000 to $26,000 gross (market pricing surveys, as of 2026). New York’s 25% state tax credit then knocks up to $5,000 off, and because PSEG Long Island credits your exports at the full retail rate, every kWh you offset is worth about 28.55 cents. The table below is our own estimate built from NREL PVWatts production for Hempstead and the EIA rate, so you can see how the payback lands.
| System size | Annual production (PVWatts) | Yearly bill offset at 28.55¢ | Typical gross cost | Net after NY 25% credit | Simple payback |
|---|---|---|---|---|---|
| 7 kW | about 9,400 kWh | about $2,700 | about $20,300 | about $15,300 | about 6 years |
| 8 kW | about 10,800 kWh | about $3,050 | about $23,200 | about $18,200 | about 6 years |
Source and assumptions: production is NREL PVWatts v8 modeled output for Hempstead (NREL PVWatts, as of 2026); the bill offset uses New York’s 28.55 cents per kWh average residential rate (EIA, March 2026); gross cost assumes about $2.90 per watt installed; the net figure subtracts New York’s 25% state credit capped at $5,000. The federal 25D credit ended after December 31, 2025, so 2026 buyers cannot claim it. These are estimates to frame the payback, not a quote, and a real bill offset is a little lower than the gross figure because a fixed monthly service charge stays on your account. Your own numbers depend on your roof, shading, usage, equipment, and installer. For a deeper walk-through, see our breakdown of whether solar panels are worth it.
How PSEG Long Island credits your solar: the time-of-day banks
Net metering still works here, but the timing matters more than almost anywhere else in New York. When your panels make more than your home uses, the extra power flows to the grid and PSEG Long Island credits it in kilowatt-hours. The twist is that most residential customers are now on a time-of-day rate, so those credits are not pooled together. They are tracked in separate banks by time period, and a kilowatt-hour exported during the expensive peak window is not automatically the same as one exported off-peak (PSEG Long Island, as of 2026).
The periods break down like this:
| Time-of-day period | When it applies | What it means for your solar |
|---|---|---|
| Peak | 3pm to 7pm on weekdays | Power costs the most, so usage you offset in this window is the most valuable |
| Off-Peak | All other weekday hours, plus weekends and federal holidays | Most of your midday solar production lands here |
| Super Off-Peak | Overnight, about 10pm to 6am, on the optional Rate 195 plan only | A deeply discounted overnight tier for customers who choose Rate 195 |
Source: PSEG Long Island time-of-day rates and time-of-day tips (as of 2026).
The feature worth knowing about is the bank transfer. Because rooftop solar tends to produce hardest in the middle of the day, much of your export piles up in the off-peak bank, while your most expensive usage falls in the 3pm to 7pm peak window. PSEG Long Island lets you request a transfer of credits between your peak and off-peak banks so that off-peak credits can offset peak usage (PSEG Long Island time-of-day tips, as of 2026). The transfer is documented between the peak and off-peak banks and is made on request, not automatically, so it is worth asking your installer or PSEG Long Island how to set it up. For the basics of how export credits work in general, see how net metering credits your solar exports. For how New York’s statewide net-metering and VDER Value Stack rules compare, see New York Net Metering & VDER Value Stack in 2026.
Note: PSEG Long Island’s time-of-day banks reward production that lines up with when power is expensive. A battery makes that easier, because it can store cheap midday production and discharge it during the 3pm to 7pm peak, instead of relying only on a bank transfer. That is one reason storage and solar are usually quoted together on Long Island.
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Battery storage on Long Island: an extra incentive layer
Long Island is one of the better places in New York to pair a battery with solar. Residents can tap an upfront storage incentive funded through NYSERDA and the Long Island system, and it is organized in blocks: each block holds a set amount of funding, the per-project amount is set for that block, and availability is limited until a block fills (NYSERDA Long Island storage incentives, as of 2026). Because the amount depends on the current block, your installer pulls the live figure at application time. We do not publish a fixed dollar-per-kWh here, since it changes as blocks subscribe.
The upfront incentive is designed to pair with PSEG Long Island’s Battery Storage Rewards program, the utility’s Dynamic Load Management offering. Under it, you agree to let your battery discharge during a small number of summer grid events, generally between May 1 and September 30, for up to four hours each and fewer than ten events per season (PSEG Long Island Battery Storage Rewards, as of 2026). In practice the upfront rebate and the rewards enrollment go together, so treat them as one decision when you compare quotes. A participating installer applies for the incentive on your behalf.
New York solar incentives PSEG Long Island customers can stack
Beyond net metering, several New York programs apply to a Long Island home. The picture has one important local wrinkle, so read the NY-Sun row carefully.
| 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 with a 5-year carry-forward (NY Tax) | Owned systems and leases or PPAs of at least 10 years qualify; the 2026 bill to raise the cap to $10,000 did not pass |
| Real property tax exemption (RPTL Section 487) | A 15-year exemption from the added property-tax value of the system (NY Senate, RPT 487) | Some local governments opt out, so confirm your town or county has not, using the state opt-out list |
| NY State sales tax exemption | Residential solar equipment and installation are exempt from the 4% state sales tax (DSIRE) | Local county or city sales tax is separate and is not automatically waived |
| NY-Sun Megawatt Block (upfront rebate) | An upfront dollars-per-watt rebate paid through the installer in some NY regions | The standard residential block is fully allocated on Long Island; an income-eligible Affordable Solar incentive remains active for those who qualify |
The NY-Sun caveat matters on Long Island. 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 here is fully subscribed, even though it is still open Upstate and in Con Edison territory (DSIRE, as of 2026). The one exception is the income-eligible Affordable Solar incentive, which is still active for qualifying Long Island households (NYSERDA Long Island dashboard, as of 2026). For New York’s statewide solar incentives in full, see New York’s statewide solar incentives. If you want to weigh the payback with these programs in mind, see our breakdown of whether solar panels are worth it.
How to connect solar to PSEG Long Island
Connecting a home system follows a set order under PSEG Long Island’s Small Generator Interconnection Procedures, and the rule that matters most is that you cannot turn the system on until PSEG Long Island issues Permission to Operate. The general path is:
- Interconnection application. You or your installer file the application package before installation, including the system design, inverter data, and net-metering designation (PSEG Long Island SGIP applications).
- Completeness and technical review. PSEG Long Island checks the package and runs an engineering review. Smaller residential systems generally move through a faster track than large or grid-constrained projects.
- Approval to install. You get conditional approval before construction begins. Do not start until you have it.
- Install and inspect. The system is installed and passes your local building department (AHJ) electrical inspection, then a PSEG Long Island inspection.
- Meter and Permission to Operate. PSEG Long Island installs or programs a bidirectional meter and issues Permission to Operate. The system only starts banking credits once it is approved to run.
Application fees are set by the LIPA interconnection tariff and scale with system size; confirm the current figure for your system size with PSEG Long Island or your installer rather than relying on a number from another utility (LIPA SGIP tariff, as of 2026). A licensed installer normally manages this whole process for you.
What changed federally, and what it 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 expenditures made 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 guidance, as of 2026). PSEG Long Island net metering, the NY 25% state credit, the property-tax and sales-tax exemptions, and the Long Island battery incentive were not affected, and together they carry the math in 2026. For the full timeline, see what the end of the federal solar tax credit means in 2026.
One federal exception remains, 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. 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, so do not let a sales pitch tell a 2026 cash or loan buyer otherwise.
How to choose a solar installer in PSEG Long Island territory
Nassau, Suffolk, and the Rockaways are a mature, competitive solar market, so you have many licensed installers to choose from. 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 Home Improvement Contractor license, which is issued at the county or local level in Nassau and Suffolk.
- A clear workmanship and equipment warranty in writing.
- Real experience with PSEG Long Island interconnection and Permission to Operate, plus the battery incentive paperwork if you are adding storage, so the process and the rebate go smoothly.
- A written production estimate and a transparent quote. For a full 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.
Check which solar programs are available at your address →
Looking at the specifics? Start with our whole-island Long Island solar guide, then the local guides for Hempstead, Garden City, Great Neck, Hicksville, Valley Stream, and Westbury in this service area.
Frequently asked questions
Is solar worth it on Long Island with PSEG Long Island?
For most homes, yes, because PSEG Long Island’s power is expensive, about 28.55 cents per kWh (EIA, March 2026), so every kWh your panels offset is worth a lot. By our estimate, a typical 8 kW Long Island system produces about 10,800 kWh a year (NREL PVWatts, Hempstead) and offsets roughly $3,050 through full net metering. After New York’s 25% state credit (capped at $5,000), and with the federal 25D credit ended after December 31, 2025, a net cost near $18,000 pays back in about 6 years. Your own payback depends on your roof, usage, and quote, so compare a few.
How does PSEG Long Island net metering work in 2026?
PSEG Long Island runs full net metering, crediting the power your panels export in kilowatt-hours. Because most residential customers are now on a time-of-day rate, those credits are tracked in separate banks by time period rather than pooled together, so when you export matters (PSEG Long Island, as of 2026). The peak window is 3pm to 7pm on weekdays, and almost everything else is off-peak. Sizing your system to your usage, and lining up production with expensive hours, is how you get the most from it.
What is the time-of-day net meter bank, and can I move credits between banks?
On a time-of-day rate, the credits you earn sit in separate peak and off-peak banks measured in kilowatt-hours. Because rooftop solar produces most in the middle of the day, a lot of your export lands in the off-peak bank, while your priciest usage is in the 3pm to 7pm peak. PSEG Long Island lets you request a transfer of credits between the peak and off-peak banks so off-peak credits can offset peak usage (PSEG Long Island time-of-day tips, as of 2026). The transfer is made on request, not automatically, so ask your installer how to set it up.
Does Long Island still get the NY-Sun upfront rebate?
For most Long Island homeowners, no. The standard residential NY-Sun Megawatt Block rebate is fully allocated on Long Island, even though it is still open Upstate and in Con Edison territory, so a generic promise of an upfront NY-Sun rebate usually does not apply here (DSIRE, as of 2026). There is one exception: an income-eligible Affordable Solar incentive remains active for qualifying Long Island households (NYSERDA Long Island dashboard, as of 2026). You can still stack net metering and the New York state credits regardless.
What battery storage incentive can PSEG Long Island customers get?
Long Island residents can claim an upfront storage incentive funded through NYSERDA and the Long Island system, organized in blocks: a set amount per block, available until that block fills (NYSERDA, as of 2026). The exact amount depends on the current block, so your installer pulls the live figure at application. The incentive is designed to pair with PSEG Long Island’s Battery Storage Rewards program, under which your battery discharges during a small number of summer grid events for up to four hours each (PSEG Long Island, as of 2026).
What happened to the federal solar tax credit for Long Island buyers?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a homeowner buying with cash or a loan in 2026 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, 25% state credit, and tax exemptions were not affected and still carry the payback.
Do I qualify for PSEG Long Island net metering if I lease or sign a PPA?
Net-metering credits follow the PSEG Long Island account, so the customer of record earns them whether you own, lease, or sign a PPA. The difference is the incentives: New York’s 25% state credit and the battery rebate flow to the system owner, so on a lease or PPA the third-party company keeps those, while your benefit is a lower or fixed power price with no up-front cost. If you want the state credit and rebate in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed July 2026 by the SolarFY Editor. Figures were verified against the linked PSEG Long Island, NYSERDA, DSIRE, EIA, New York State Department of Taxation and Finance, New York Senate, and IRS sources as of July 2026; cost, production, and payback figures are our own estimates for illustration and use simple (undiscounted) first-year payback, and net-metering terms, incentive blocks, and rates reset over time, so confirm current terms with PSEG Long Island and NYSERDA before you decide. See how we compute our estimates. 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, 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; on a lease or PPA the New York state credit and the battery rebate go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
