Solar in New York: is it worth it in 2026?
New York is one of the best places in the country to own solar. Three things decide that: electricity here is among the most expensive in the country (7th of 51), it gets less sun than most states (45th of 51), and exported power earns full retail credit. Of the 51 states and DC, New York has the 5th-fastest payback for a typical home.
The average home here pays about $155 a month for 586 kWh. A 5 kW system sized for that home would knock about $1,703 off the first year's bills, 92% of the total.
Checked November 12, 2026
What makes solar pay off in New York
- Size the system to cover your yearly use. With full net metering, power you export is worth as much as power you use, so timing matters less than in most states.
- High electricity prices do the heavy lifting. At 26.4¢ per kWh, even a modest system saves real money, but the price still matters. At $3.34 per watt, the high end of what companies quote, payback for a typical system here stretches to 10 years.
Payback by system size
An average New York home uses about 7,032 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 46% | 2.5 kW | $6,425 | 3,228 kWh | 8 years | $18,189 |
| 73% | 4 kW | $10,280 | 5,164 kWh | 8 years | $30,676 |
| 101% | 5.5 kW | $14,135 | 7,101 kWh | 8 years | $43,144 |
| 129% | 7 kW | $17,990 | 9,037 kWh | 9 years | $45,993 |
The 2.5 kW system pays back fastest, but the 7 kW system saves the most over 25 years. Assumes exported power earns full credit, prices rise 2.5% a year and one inverter replacement.
How New York credits power you send to the grid
Full credit (net metering)
1:1 retail credits for home systems up to 25 kW; systems connected in 2026 lock this in for 20 years. Con Edison customers pay a small monthly charge.
By utility
- Con Edison: 1:1 net metering, with a Customer Benefit Contribution charge of $1.84 per kW of panels each month (2025 rate) for systems connected since 2022.
- National Grid (New York): 1:1 net metering for upstate customers, with a Customer Benefit Contribution of $1.49 per kW each month (2025).
- PSEG Long Island: 1:1 net metering on Long Island and the Rockaways, with the state's lowest Customer Benefit Contribution: $1.00 per kW each month (2025).
Before you sign in New York
Check the license. New York licenses contractors at the city and county level (in New York City, the Department of Buildings and the Department of Consumer and Worker Protection). Ask for the local license.
New York has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
New York compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| New York | 26.4¢ | 1,291 | 8 years | Full credit (net metering) |
| Vermont | 22.8¢ | 1,222 | 10 years | Full credit (net metering) |
| Massachusetts | 30.4¢ | 1,302 | 7 years | Full credit (net metering) |
| Connecticut | 29.3¢ | 1,291 | 8 years | Full credit (net metering) |
| New Jersey | 22.5¢ | 1,305 | 9 years | Full credit (net metering) |
| Pennsylvania | 19.3¢ | 1,356 | 10 years | Full credit (net metering) |
Questions about solar in New York
How long does solar take to pay for itself in New York?
About 8 years for a typical 5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does New York have net metering?
Yes. 1:1 retail credits for home systems up to 25 kW; systems connected in 2026 lock this in for 20 years. Con Edison customers pay a small monthly charge.
Is there a solar tax credit in New York in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 5 kW system in New York, that credit was worth about $3,855 and brought payback down to 6 years, instead of 8 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in New York?
Not for savings. New York credits exported power at the full retail rate, and storing power in a battery loses about 10% of it, so a battery saves nothing on the bill. It can still be worth it for backup during outages: a 13.5 kWh battery costs about $15,650 installed in 2026.
Is plug-in solar legal in New York?
Not yet. A bill (SUNNY Act (A.9111-C / S.8512-C)) is pending: passed the legislature; not yet sent to the governor.
How do I check a solar company's license in New York?
New York licenses contractors at the city and county level (in New York City, the Department of Buildings and the Department of Consumer and Worker Protection). Ask for the local license.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; SolarReviews: Net metering in 2026; NYSERDA: 2025 Customer Benefit Contribution rates; Palmetto: New York utility guide; Solar.com: Plug-in solar, the 2026 guide; EnergySage: median quoted price, first half of 2026.