A worked example: 8 kW in New York
An 8 kW system — about 19 × 425-watt panels — at New York's assumed installed cost of $2.75–$3.55 per watt runs roughly $22,000–$28,400 before incentives. At about 1,180 kWh of production per installed kW, it would generate around 9,440 kWh per year. Valuing self-consumed electricity at the assumed $0.25/kWh retail rate and exports conservatively, first-year savings land near $1,945 — a simple payback of roughly 11–15 years.
There is no federal tax credit in that math: the Section 25D residential credit ended for systems installed after December 31, 2025. State or utility incentives, where they exist, would shorten payback from here.
Average cost of solar panels in New York by system size
Most New York quotes land between 6 and 12 kW. At the state's assumed $2.75–$3.55 per watt, here is what each size costs to install, what it produces, and how long it takes to pay for itself on electricity savings alone — no incentives applied.
| System size | Panels | Installed cost | Annual production | Est. payback |
|---|---|---|---|---|
| 6 kW | 15 | $16,500–$21,300 | 7,080 kWh | 11–15 yrs |
| 8 kW | 19 | $22,000–$28,400 | 9,440 kWh | 11–15 yrs |
| 10 kW | 24 | $27,500–$35,500 | 11,800 kWh | 11–15 yrs |
| 12 kW | 29 | $33,000–$42,600 | 14,160 kWh | 11–15 yrs |
Size should follow your electricity usage, not a round number — these are reference points, not a recommendation. Note that cost per watt rises on smaller systems, because permitting, labor and the inverter do not shrink with the array.
What solar costs per kWh in New York
Spread across a 25-year life, with 0.5%/yr panel degradation and no financing cost, solar electricity in New York works out to roughly 9.9¢–12.8¢ per kilowatt-hour. The New York retail rate this page assumes is 25.0¢. That gap — not the sticker price — is what determines whether solar pays here, and it is why a sunnier state with cheap electricity can be a worse investment than a cloudier one with expensive electricity. See how every state compares on cost per kWh.
Net metering and export rates in New York
New York offers residential net metering with a modest monthly Customer Benefit Contribution charge, under the VDER framework. Exports are effectively near retail value for typical homes.
Export rules are worth reading as an incentive, because they set what every kilowatt-hour you do not use on site is worth — see how New York compares with every other state on net metering.
New York solar incentives
New York offers a 25% state income tax credit up to $5,000, NY-Sun upfront rebates (block funding varies by region), plus sales tax exemption — among the best state incentive stacks.
The most valuable program is 25% state tax credit plus ny-sun rebates. With no federal credit for 2026 installs, state and utility programs are now the whole picture — see the full New York incentives guide.
What changes a New York solar quote?
Equipment, roof condition, electrical upgrades, permitting, labor, system size, batteries and financing can all change the installed price. Savings also depend on the specific utility rate, how much solar electricity the home uses directly, and what the utility pays for exports.
Frequently asked questions
What is the average cost of solar panels in New York?
The average installed cost in New York runs $2.75–$3.55 per watt before incentives, which puts a 6 kW system at $16,500–$21,300, an 8 kW at $22,000–$28,400, and a 10 kW at $27,500–$35,500. Spread over a 25-year life, that works out to about 9.9¢–12.8¢ per kilowatt-hour, against a New York retail rate assumed at 25.0¢.
How much does it cost to install solar panels in New York?
Installation is not priced separately — the $2.75–$3.55 per watt above is a turnkey figure covering panels, inverter, racking, labor, permitting and interconnection. What moves it most in NY is roof complexity, whether the main panel needs upgrading, and whether a battery is included. Expect a site visit to change any online estimate, including this one.
How much do solar panels cost in New York?
Using an assumed installed cost of $2.75–$3.55 per watt, a typical 8 kW home system in New York costs roughly $22,000–$28,400 before incentives. Smaller and larger systems scale roughly with size, though small systems cost more per watt.
Is solar worth it in New York?
With New York electricity around $0.25/kWh and production around 1,180 kWh per installed kW per year, an 8 kW system could save roughly $1,945 in year one, for a simple payback of about 11–15 years with no federal credit. Whether that is "worth it" depends on your rate plan, export compensation, roof, and how long you plan to stay in the home.
How many solar panels do I need in New York?
It depends on your electricity usage, not your roof. At New York's assumed 1,180 kWh per installed kW, a 6 kW system (about 15 panels at 425 watts) generates roughly 7,080 kWh a year, and a 10 kW system (about 24 panels) roughly 11,800 kWh. Compare that against your annual kWh from a utility bill — our calculator sizes it from your monthly bill in about a minute.
Does New York have net metering?
New York offers residential net metering with a modest monthly Customer Benefit Contribution charge, under the VDER framework. Exports are effectively near retail value for typical homes.
What solar incentives does New York offer in 2026?
New York offers a 25% state income tax credit up to $5,000, NY-Sun upfront rebates (block funding varies by region), plus sales tax exemption — among the best state incentive stacks. Note that the federal Section 25D residential credit ended for systems installed after December 31, 2025, so state, local and utility programs are now the main incentives for purchased systems.
Is there still a federal solar tax credit in New York?
No — the 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Leased or PPA systems may still benefit indirectly because the system owner can claim the commercial 48E credit through 2027.
Use this as a starting point
This page provides broad state assumptions, not a current market survey or binding quote. Before purchasing, verify applicable incentives, utility rules, installer licensing, warranties and financing terms.
Where these numbers come from
State assumptions are informed by public data and reviewed periodically (September 2026):