Is Solar Worth It in New York in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for New York homeowners — without the federal ITC.
Cost Per Watt
$3.60
installed
Electricity Rate
$0.150
per kWh
Payback (No ITC)
19.4 yr
current reality
Payback (With 30% ITC)
13.6 yr
hypothetical
25-Year ROI
29%
return on investment
Incentive Breakdown — New York
Available incentives for a typical 7kW residential solar system in New York
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$5,000New York offers a state personal income tax credit of 25% of qualified solar electric system costs, up to $5,000.
SREC Market
~$140/yrNY-Sun NY-SREC program provides Solar Renewable Energy Credits valued at approximately $20/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Low-Income Program
AvailableNew York offers programs to help low-income households access solar energy.
Key Incentives: State tax credit worth $5,000; Property tax exemption for solar; Sales tax exemption on solar equipment; SREC market value ~$140/year; Utility rebate of $1,400; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in New York
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.60/W
- Gross Cost
- $25,200
- Federal ITC
- $0
- Net Cost
- $25,200
- Annual Savings
- $1,298/yr
- Payback Period
- 19.4 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.60/W
- Gross Cost
- $25,200
- Federal ITC (30%)
- -$7,560
- Net Cost
- $17,640
- Annual Savings
- $1,298/yr
- Payback Period
- 13.6 years
Impact: Without the federal ITC, New York homeowners face a 5.8-year longer payback period — paying $7,560 more out of pocket.
Net Metering Policy — New York
How New York compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
New York offers full retail net metering for residential solar under the VDER (Value of Distributed Energy Resources) transition.
Cost Per Watt Benchmark — New York
New York Average
$3.60/W
National Average
$3.05/W
Typical 7kW System
$25,200
New York's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in New York breaks even in 19.4 years. With the former 30% ITC, payback would drop to 13.6 years.
Without Federal ITC
19.4
years to break even
With Former 30% ITC
13.6
years to break even
Production Details
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