Is Solar Worth It in New York? ~7.8-Year Payback (2026)

New York is the clearest illustration of the rule that rates beat sunshine. It has some of the poorest solar resource in the continental US and is still one of the better places to buy a system.

The New York numbers

• Electricity rate: about 22¢/kWh — roughly a third above the national average, and considerably higher downstate.
• Sun: roughly 3.9 peak sun hours a day, among the lowest in the country.
• Typical system: about 8.8 kW (23 panels) for a home using 10,800 kWh a year.
• Cost: around $26,500 gross, near $18,500 after the 30% federal credit — before state incentives.
• Year-one savings: roughly $2,375.
• Simple payback: about 7.8 years, and materially faster once state incentives apply.

Work through your own figures on the New York solar cost page or with the Solar Savings Calculator.

What makes New York work

The state tax credit. New York offers a residential solar credit of 25% of system cost, capped at $5,000, which stacks with the federal credit. On the system above, that is close to the cap — dropping net cost toward $13,500 and payback under six years.

NY-Sun incentives. A per-watt rebate administered through your installer, with values that step down by region as capacity blocks fill. It is applied to the quoted price rather than claimed on your taxes, so ask the installer to show it as a line item.

Net metering, retained. New York kept residential net metering when many states scaled back, though newer customers pay a customer benefit contribution that trims the value slightly. See what is net metering.

Rates that keep climbing. Downstate delivery charges in particular have risen steadily, which raises the value of every kWh you generate.

What to watch out for

Shade has less margin here. At 3.9 sun hours you start with less production than a Georgia home, so a shaded roof bites harder. Get a proper shade analysis and consider microinverters or optimisers.

Snow. Expect several weeks of reduced winter output. Annual net metering carries summer credits forward to cover it — one more reason net metering matters here. See do solar panels work in winter.

Roof space. A 23-panel array needs roughly 500 sq ft of usable roof. On a small city or suburban roof, higher-efficiency panels may be the only way to fit enough capacity — see solar panel efficiency explained.

Utility differences. Con Edison, National Grid, NYSEG, RG&E and the municipal utilities have materially different rates and interconnection timelines. Statewide averages hide a lot.

When it is worth it in New York

• Above-average bills, which describes most of the state
• A south, southeast or southwest roof with limited shading
• Enough tax liability to use the federal and state credits — both are nonrefundable, so see how to claim the solar tax credit
• You own the system, so the credits and the resale premium are yours

When to be cautious

• Heavy tree cover, especially on the only usable roof plane
• A roof with under ten years of life left — replace it first
• A likely move within five years
• Little or no state and federal tax liability, which strips out most of the incentive value

Bottom line

New York proves you do not need sunshine to make solar pay — you need expensive electricity and good policy, and New York has both. Confirm current NY-Sun block pricing and the state credit cap with your installer, then check the arithmetic yourself.

Educational estimates only. Verify current New York incentives, utility tariffs and net metering terms before buying.