Solar panel cost in New York 2026: NY-Sun rebates and real quotes
New York solar runs $2.80–$3.40 per watt in 2026. Two things changed this year: the 30% federal credit expired, and NY-Sun's standard-income Megawatt Block closed in Con Edison and Upstate. What's left — the 25% state credit, tax exemptions, and income-qualified incentives.
In 50 words: New York solar costs $2.80–$3.40 per watt installed in 2026, or roughly $22,000–$27,000 for a typical 8 kW system before incentives. The 30% federal credit expired December 31, 2025, and NY-Sun's standard-income blocks are fully subscribed in Con Edison and Upstate — leaving the 25% state credit as the main offset.
New York has spent a decade as one of the best states in America to go solar, on the strength of stacked incentives: a federal credit, a state credit, an upfront NY-Sun rebate, property and sales tax exemptions, and strong net metering.
Two of those pillars fell away in the last eight months. Anyone quoting 2024 payback numbers for a New York install is describing a program that no longer exists. Here is the current picture.
Table of contents
- What New York solar costs in 2026
- What changed: two incentives gone
- What remains — and it's still substantial
- Worked example: 8 kW system
- Payback by utility territory
- FAQ
- What to watch next
1. What New York solar costs in 2026
| System size | $/W range | Gross cost |
|---|---|---|
| 5 kW | $3.00–$3.60 | $15,000–$18,000 |
| 8 kW (typical) | $2.80–$3.40 | $22,400–$27,200 |
| 12 kW | $2.70–$3.20 | $32,400–$38,400 |
The state average sits near $2.80–$3.40 per watt, with some trackers reporting an average closer to $2.77/W. New York City and Long Island installs price at the high end — labor rates, permitting complexity and roof access — while Upstate installs are typically 15–25% cheaper per watt.
Cost drivers specific to New York: NYC permitting and fire-code setback requirements add meaningful soft cost, snow-load engineering matters upstate, and older housing stock frequently needs an electrical service upgrade before interconnection.
2. What changed: two incentives gone
The federal 30% credit expired December 31, 2025. The residential clean energy credit (25D) is no longer available for new installations. On a $24,000 system that is $7,200 gone — by far the biggest change to New York solar economics in a decade. Unused credit from a qualifying pre-2026 install may still be carried forward.
NY-Sun standard-income Megawatt Blocks closed. The MW Block program pays an upfront per-watt rebate that steps down as each block fills. As of March 2026, the standard-income blocks are fully subscribed in both the Con Edison and Upstate regions — meaning the $0.20–$0.40/W rebate that most homeowners counted on is not currently available in those territories.
Those two changes together removed roughly $8,000–$10,000 from a typical New York project's incentive stack. The honest framing: solar in New York went from an unusually subsidized purchase to a more ordinary one.
3. What remains — and it's still substantial
New York still has one of the better remaining incentive stacks in the country:
| Incentive | Value | Notes |
|---|---|---|
| NY State solar tax credit | 25% of cost, capped at $5,000 | Personal income tax credit; carries forward up to 5 years |
| Sales tax exemption | ~4% state (plus local where adopted) | Applied at purchase |
| Property tax exemption | 15 years | Added home value is not taxed |
| NYC property tax abatement | Up to 30% of cost over 4 years | New York City only — significant |
| Affordable Solar (≤80% AMI) | $0.80/W Upstate and Con Ed; $0.40/W Long Island | Income-qualified; still open |
| Net metering / VDER | Varies by utility | The long-run economics |
Two of these deserve emphasis. The 25% state credit capped at $5,000 is unusually generous and still fully available — for an $24,000 system it delivers the full $5,000. And New York City's property tax abatement stacks on top, which is why NYC installs can still pencil despite the highest per-watt pricing in the state.
For income-qualified households, the Affordable Solar Residential Incentive remains open at $0.80 per watt in the Upstate and Con Edison regions — worth $6,400 on an 8 kW system, which more than replaces what standard-income customers lost.
4. Worked example: 8 kW system
Standard-income household, Upstate, $2.95/W:
| Line | Amount |
|---|---|
| Gross system cost (8 kW × $2.95) | $23,600 |
| NY-Sun MW Block rebate | $0 (blocks closed) |
| Sales tax saved (~4%) | ~$900 |
| NY State tax credit (25%, capped) | −$5,000 |
| Federal 25D credit | $0 (expired) |
| Net cost | ~$17,700 |
At a typical Upstate consumption of 9,000 kWh/year offset at roughly 19–22¢/kWh, annual savings land near $1,700–$2,000, giving a payback of roughly 9–10 years on a system warrantied for 25.
The same system in 2024, with the federal credit and an open MW Block, netted around $10,000 and paid back in five to six. That is the honest before-and-after.
5. Payback by utility territory
| Territory | Typical rate | Est. payback (post-2025) |
|---|---|---|
| Con Edison (NYC/Westchester) | Highest in state | 7–9 years (plus NYC abatement) |
| Long Island (PSEG-LI) | High | 8–10 years |
| Upstate (National Grid, NYSEG, RG&E) | Moderate | 9–11 years |
| Income-qualified, any region | — | 5–7 years (Affordable Solar) |
The pattern is straightforward: payback tracks your electricity rate, and Con Edison's high rates plus the NYC abatement keep the city among the strongest solar markets in the country even after the federal credit's loss.
One structural consideration: New York's move from traditional net metering toward VDER (Value of Distributed Energy Resources) compensation for newer installs changes how exports are valued. Where export credit falls below retail rate, pairing with storage to self-consume becomes more attractive — the same logic driving battery adoption nationally, which we work through in the home battery buyer's guide.
6. FAQ
How much do solar panels cost in New York in 2026?
$2.80–$3.40 per watt installed, or roughly $22,400–$27,200 for a typical 8 kW system before incentives. Upstate is cheaper per watt than NYC and Long Island.
Is the NY-Sun rebate still available?
For standard-income customers, the Megawatt Block is fully subscribed and closed in the Con Edison and Upstate regions as of March 2026. The income-qualified Affordable Solar incentive ($0.80/W Upstate and Con Ed) remains open.
Is there still a federal solar tax credit?
No, not for new residential installations — the 30% residential clean energy credit (25D) expired December 31, 2025. Credit from qualifying earlier installs may be carried forward.
What is the New York State solar tax credit?
A personal income tax credit worth 25% of system cost, capped at $5,000, carried forward up to five years. It remains fully available and is now the largest single incentive for most New York homeowners.
What is solar payback in New York now?
Roughly 7–9 years in Con Edison territory, 9–11 years Upstate, and 5–7 years for income-qualified households using Affordable Solar — against a 25-year system life.
7. What to watch next
Three things to track through the rest of 2026. Whether NYSERDA opens new Megawatt Blocks — the program has re-funded before, and an announcement would restore $1,600–$3,200 to a typical project, so it is worth asking your installer to flag it. State legislative response to the federal credit's expiry: New York has historically backfilled federal gaps, and any expansion of the state credit cap would be the single most consequential change. And VDER and net-metering policy, which quietly determines whether your exported afternoon solar is worth retail or wholesale — the variable that matters more over 25 years than any upfront rebate.
This guide was researched and drafted with AI assistance and edited by a named member of the Earth Energy Log editorial team. Prices are New York market composites for mid-2026; incentive programs, block availability and tax rules change frequently — verify current terms with NYSERDA and your installer. This is general information, not tax advice. See our editorial standards and AI disclosure. Related reading: home battery buyer's guide, whole-home backup, EV charger rebates by state. Explore solar, policy and the United States hub.