Is solar worth it in New York in 2026?

For a home with a $150 monthly bill, a 4.8 kW system in New York costs about $18,682 at the state's median price and pays for itself in roughly 10.4 years, with no federal tax credit. That ranks 4 of 25 states we cover.

Updated October 7, 2026 · Estimates, not a quote

Residential electricity price

29.4¢per kWh

Source: EIA, 2026 year to date

Solar output in New York City

1,279kWh per kW a year

Source: PVGIS, NSRDB data

Median installed cost, 2025

$3.90per watt

Source: Berkeley Lab

Calculator · 2026 data, no federal tax credit

How long would solar take to pay for itself?

StateAverage monthly electric bill$Installed cost per watt (state median; use your quote)$Value of solar power vs. retail rate (why)%

Simple payback

10.4 years

System size: 4.8 kW
Installed cost: $18,682
Savings, year one: $1,800
Net over 25 years: $23,719

Sized to cover your yearly use at today's price. Panels lose 0.5% a year; prices held flat. Method

How New York pays for your solar power

Net metering at the retail rate. Residential exports are credited kWh for kWh (net metering) for most utility customers, but systems installed since Jan 1, 2022 pay a monthly Customer Benefit Contribution per kW.

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 100% of retail (our default for this kind of rule), so each solar kWh is worth 100% of the retail price on average. Change it if your utility pays more or less. Method

State or utility incentive	What it is worth
NY state Solar Energy System Equipment Credit	25% of cost, up to $5,000 (non-refundable, 5-year carryover)
NY-Sun Affordable Solar Residential Incentive (income-qualified households)	$0.80/W upstate and Con Edison, $0.40/W Long Island
State sales tax exemption on residential solar equipment	State and MCTD sales tax exempt; local exemption varies by county
Real property tax exemption for solar (RPTL 487)	15-year exemption on added property value, unless the locality opted out

How exports are credited

New York has moved most solar customers to the Value of Distributed Energy Resources (VDER) “value stack”, but home solar was kept on a net metering option. In its July 2020 successor order, the Public Service Commission (PSC) kept Phase One net energy metering for on-site residential and small commercial systems installed after January 1, 2022. Under net metering, power sent to the grid is credited kWh for kWh against what you draw, and unused credits carry forward. The PSC’s own description of Phase One NEM says it runs for 20 years from interconnection and does not pay cash for leftover credits.

The change for newer systems is a fee. Residential and small commercial systems that connect on or after January 1, 2022 pay a monthly Customer Benefit Contribution (CBC), charged per kW of installed DC capacity. It funds low-income, energy efficiency and clean energy programs. The rate is set by each utility every year, and owners do not lock one in when they interconnect. The 2026 residential rates for net metered systems, per kW per month, are:

Central Hudson: $1.67
Con Edison: $1.29
LIPA (PSEG Long Island): $1.13
National Grid: $0.97
NYSEG: $1.19
Orange & Rockland: $1.00
RG&E: $1.31

Systems interconnected before January 1, 2022 do not pay the CBC. Owners can instead opt into the value stack, which has lower CBC rates (for example $0.65 per kW per month for Con Edison in 2026), but it pays for exports by time and place rather than kWh for kWh.

State incentives in 2026

State tax credit. The Solar Energy System Equipment Credit is 25% of qualified costs, capped at $5,000. It is not refundable, but any unused amount can be carried forward for up to five years. It applies to purchases, leases and long-term power purchase agreements at a principal residence. Claim it on Form IT-255.
NY-Sun. The standard residential megawatt blocks are closed. The Con Edison residential block closed May 29, 2025, and the last upstate residential block (Block 14, $0.15/W, National Grid, NYSEG and RG&E) closed December 17, 2025, according to NYSERDA’s dashboards. What remains is the Affordable Solar Residential Incentive for low- to moderate-income households: $0.80 per watt in the upstate and Con Edison regions and $0.40 per watt on Long Island. Check the NYSERDA dashboard for your utility, since blocks can be added.
Sales tax. Residential solar equipment is exempt from the 4% state tax and the 3/8% Metropolitan Commuter district tax. Local sales tax is exempt only where the county or city passed the exemption. Publication 718-S lists which ones (the March 2022 edition was the one reviewed).
Property tax. Real Property Tax Law section 487 exempts the added value from a solar system for 15 years, but a county, city, town or village can opt out by local law. Ask your assessor.

What it means for payback

Net metering keeps the value of each exported kWh high, so sizing a system to cover most of your annual use works well. The monthly CBC works like a fixed charge that grows with system size, so it trims savings a little each month and matters more in utility areas with higher CBC rates. Without the federal credit, the 25% state credit (capped at $5,000) is now the main upfront incentive for most households. Income-qualified households may stack the NY-Sun rebate.

Other rules worth knowing

The CBC is not locked in, so it can change each year. The income limits and application steps for the Affordable Solar incentive are in the NY-Sun program manual. The state tax credit page was last updated in December 2019, so confirm the figures with the Department of Taxation and Finance before filing.