Solar Financing in New York
Lease vs. Buy vs. PPA — Complete financing guide for NY homeowners
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Going solar in New York? With electricity rates averaging 24¢/kWh and good solar resources, choosing the right financing option can save you $50,400 or more over 25 years. This guide breaks down every option available to New York homeowners.
Avg Rate
24¢
per kWh
Solar Resource
Good
NY
Typical System
8kW
residential
Payback
~6.3 yrs
estimated
Solar Incentives & Tax Credits in New York
New York homeowners can take advantage of the following solar incentive programs:
Federal Solar Investment Tax Credit
30% federal tax credit via Section 48E for qualifying projects (leases, PPAs, commercial) that begin construction before July 4, 2026. The residential ownership credit (25D) expired December 31, 2025.
30% of system cost
NY-Sun Megawatt Block Incentive
NY-Sun provides upfront $/W rebates, typically $0.20-$0.80/W depending on region and block availability.
Up to ~$1,400
New York State Solar Tax Credit
New York offers a state personal income tax credit of 25% of qualified solar system costs, up to $5,000.
25% up to $5,000
Solar Property Tax Exemption
Solar electric systems are exempt from property tax increases for 15 years under Real Property Tax Law Section 487.
15-year exemption
Solar Sales Tax Exemption
Solar electric systems and installation are exempt from state sales tax (4%) and most local sales taxes.
State sales tax exempt
Net Metering in New York
New York offers full retail net metering for residential solar under the VDER (Value of Distributed Energy Resources) framework.
✓ New York offers a property tax exemption for solar installations, meaning your property taxes won't increase despite the added home value.
✓ New York exempts solar equipment from sales tax, saving you money at purchase.
Compare Financing Options in New York
See how cash purchase, solar loan, lease, and PPA compare based on New York's average rates:
Solar Financing Comparison for New York
Based on 24¢/kWh electricity rate and a 8kW system
Cash Purchase
Pay upfront — maximum long-term savings
- Upfront Cost
- $16,800
- Monthly Savings
- $224/mo
- Tax Credit Eligible
- Yes
Solar Loan
$0 down — own the system over time
- Down Payment
- $0
- Monthly Payment
- $164/mo
- Net Monthly
- $60/mo
- Tax Credit Eligible
- Yes
Solar Lease
$0 down — provider owns the system
- Down Payment
- $0
- Monthly Payment
- $104/mo
- Net Monthly
- $120/mo
- Tax Credit Eligible
- No
Power Purchase Agreement
$0 down — pay per kWh produced
- Down Payment
- $0
- Annual Savings
- $2,072/yr
- Tax Credit Eligible
- No
Estimates based on average New York (NY) rates and system costs. For a personalized comparison, use our full financing calculator.
Lease vs. Buy vs. PPA in New York
Buying (Cash or Loan)
Best for: Maximizing long-term savings and home value.
- You own the system and all electricity it generates
- Eligible for the 30% Federal Tax Credit (~$7,200 on a 8kW system)
- Property tax exempt in New York
- Increases home value by an average of 4.1%
- Highest 25-year savings: ~$50,400
- You handle maintenance (panels need little)
Solar Lease
Best for: Zero upfront cost with predictable payments.
- $0 or low upfront cost
- Fixed monthly payment (no surprise bills)
- Maintenance and repairs typically covered
- Not eligible for tax credits or incentives
- Lower 25-year savings (~$36,000)
- May complicate home sale (lease transfer)
Power Purchase Agreement (PPA)
Best for: Paying only for what you produce, $0 down.
- $0 upfront cost
- Pay a per-kWh rate (typically lower than utility)
- Provider owns and maintains the system
- Not eligible for tax credits
- Rate escalates 2-3% annually (read the contract)
- Lowest 25-year savings of the three options
Solar Financing FAQ — New York
Is solar worth it in New York?
Yes, solar is an exceptionally strong investment in New York. With above-average electricity rates averaging 24¢/kWh and good solar resources, a typical 8kW system can offset most of your household electricity usage. The estimated payback period is 6-8 years, after which you enjoy more than a decade of largely free electricity. new york offers full retail net metering for residential solar under the vder (value of distributed energy resources) framework is the main policy factor to verify with your utility.
What solar incentives are available in New York?
New York residents can claim the 30% Federal Solar Investment Tax Credit (worth $7,200 on a typical 8kW system). The state also offers NY-Sun Megawatt Block Incentive, New York State Solar Tax Credit, Solar Property Tax Exemption, Solar Sales Tax Exemption. New York offers a property tax exemption, so your property taxes won't rise despite the added home value; New York exempts solar equipment from sales tax, saving you money at purchase.
Should I lease, buy, or get a PPA in New York?
Buying your solar system (cash or loan) maximizes long-term savings and qualifies you for the 30% Federal Tax Credit. On a typical 8kW system in New York, that's about $7,200 back. Buying yields roughly $50,400 in net savings over 25 years. Leasing or a PPA requires $0 down and includes maintenance, but you won't get tax credits and your 25-year savings will be much lower (around $36,000). If you can afford the upfront cost or qualify for a low-rate loan, buying is the clear winner in New York.
How much does a solar system cost in New York?
A typical 8kW residential solar system in New York costs approximately $24,000 before incentives. After the 30% Federal Tax Credit (~$7,200), the net cost drops to about $16,800. Actual costs vary based on equipment quality, installer, roof complexity, and whether you add battery storage. New York offers a property tax exemption, so your property taxes won't rise despite the added home value; New York exempts solar equipment from sales tax, saving you money at purchase.
Does New York have net metering?
New York offers full retail net metering for residential solar under the VDER (Value of Distributed Energy Resources) framework.
What is the solar payback period in New York?
The typical solar payback period in New York is approximately 6-8 years. With a net system cost of about $16,800 after the federal tax credit and annual electricity savings of roughly $2,419-$2,957 (based on 24¢/kWh), most New York homeowners see full payback within 8 years and enjoy 17+ years of largely free electricity thereafter.
Related Solar Tools
Estimates are based on New York average rates, system costs, and the 30% Federal Solar Investment Tax Credit. Actual savings vary by installer, equipment, roof, and utility policy.