How much do solar panels cost in New York?

Installing residential solar panels can cost between $10,000 and $30,000 or more, though individual costs vary. Your system size greatly affects how much you pay overall. The typical system size for solar systems in New York is 6.5 kilowatts (kW).

How do you know if the average size system is enough for your home or if you need a bigger one? Check out the amount of electricity you used in the last year in kilowatt-hours (kWh). You’ll find this information in your electric account dashboard online.

Then, divide your annual kWh by 1,200 to find the system size you need. For example, if your home used 30,000 kWh last year, you would need a 25-kW system.

» WHAT’S THE DIFFERENCE? kW vs. kWh

Average cost by system size in New York

Are solar panels worth it in New York?

Many New Yorkers we talk to seem happy with their savings since getting solar panels. For example, Joseph in Queens is saving “about $300 a month even with the cost of the lease.”

Before going solar, John in New York City said his electric bill would be anywhere from $100 to $300 each month. “I bought three Tesla batteries from Sunrun, and now, I noticed my bill is only $32 with tax. I'm happy, and those batteries are precious,” John told us.

“We only have the $19 service charge from the company for line upkeep,” Christopher in Warwick, who got a 400-watt system, said. “The solar panels produce enough power for our house.”

“The only thing is I'm getting a little less production than was projected,” Barry in Pawling told us. “I'm getting about 44% of my electrical needs and I'm saving about a little $1,000 a year. I expect them to be more like $1,500 a year.”

The cost of electricity is generally higher in NYC, making the return on investment (ROI) for solar potentially more favorable. While electricity might be cheaper in rural areas, the larger installations might offset the lower prices.

Cost factors of going solar in New York

The final price tag on your panels can vary a lot based on things, including your system’s power output, the quality of your equipment, the solar company you choose, permit costs and the condition of your roof. Here are some things to consider.

Equipment costs

Typically, your equipment costs will vary depending on the size of your system and the efficiency of the panels you choose. Solar panel efficiency is how well each panel can turn sunlight into electricity. The better the efficiency, the fewer panels you need, lowering your overall cost.

New York receives an average of 3 to 3.5 peak sun hours a day.

Another equipment cost is solar batteries. These are optional, but if you do decide to add them, you could be looking at an extra cost of $7,000 to $18,000.

You can also include a monitoring system with your solar equipment. The monitoring system can alert you to problems with your solar panels, track your net metering and more. These run from $80 to $400.

» COMPARE: Most efficient solar panels

Where you live

Compared with the rest of the state, going solar is a little different in New York City. Most New Yorkers live in apartment buildings with limited roof space, so large-scale solar installations may be shared among many residents.

For instance, Paul in Queens said: “On our block here on 69th Avenue, we have a couple of brownstones that we own and on two of the two-family brownstones, we put in solar panels and we were able to divide up the panels. Eleven for the first floor and 11 for the second floor. And that gives my tenants 100% of their heating in the winter and 100% of their air conditioning in the summer. So, they pay the flat $18.62 a month, winter and summer.”

Condition of your roof

Solar panels tend to be large and heavy, and your roof needs to be able to support this weight. It’s important to get a roof inspection if you plan on getting a new solar system.

You want your roof to not only support the system but also to last. Solar panels last around 25 to 30 years, and your roof needs to last the same number of years. Otherwise, you’ll have to pay the extra expense of having your panels removed during your roof renovation.

» MORE: Should you replace your roof before going solar?

How you pay

There are various options to help you pay for solar if you can’t pay upfront with cash. Solar loans are available in New York to finance solar panels. Other options include leasing solar equipment or getting a PPA (power purchase agreement). With a PPA, you’re basically borrowing the equipment and paying for the energy it produces.

» SOLAR PANELS: Lease vs. buy

Permit costs

Each town in New York has rules about permits you must acquire before installing a solar system. These permit costs can add up. Some cities in the state, like Riverhead, offer discounts on solar-related permits.

• NYC: The dense urban environment means more bureaucracy. There might be more permits required, more complex fire department regulations and potential historic preservation considerations.
• Rural areas: There are still permits and regulations, but they are often less intricate than in the city.

» GUIDE: Solar panel installation guide

Solar incentives, tax credits and rebates in New York

The federal solar investment tax credit (ITC) is the best way to save money while going solar in New York. If you install your system by the end of 2032, you can deduct 30% of the system's total cost. The 30% includes equipment, labor and permits.

All you need to do is report your system on your federal taxes. Those who wait will see the credit drop to 26% in 2033 and 22% in 2034.

The average ITC value in New York is $5,753 in 2023.

The Empire State offers a wide range of state-specific incentives for those going solar. You may qualify for 100% property tax and sales tax exemption for your home. This will save you thousands over the years. You can also take advantage of state tax deductions and special solar loan programs.

» EXPLORE: New York solar incentives

Compare solar installation companies in New York

Compare popular solar companies available in New York below. Read our guide to finding the best solar companies for more.

» TIPS: Tips for getting the best solar quotes

Bottom line

It will set you back about $13,423 to install solar panels in New York after the federal tax credit. While this sounds like a lot, it's about 20% cheaper than the national average. You can expect to pay around $19,176 before the tax credits kick in. In addition to the federal tax credit, state tax breaks and some great loan programs can help you pay for your solar system.

» STILL NOT SURE? Solar pros and cons

Solar costs: New York vs. nearby states