Should You Go Solar in New York? Here‘s Everything You Need to Know

New York has ambitious plans to combat climate change. The state aims to generate 70% of its electricity from renewable energy like wind and solar by 2030. Already one of the leading states for solar power, analysts expect rapid growth in residential solar adoption over the next 5-10 years.

But what does that rapid expansion mean for homeowners? More specifically, can installing solar panels cut your electricity bills?

This guide examines that question in-depth. I‘ll provide a detailed overview of costs, available incentives and bill savings projections to help you decide if solar power is right for your home.

How Popular is Residential Solar in New York?

Thanks to decreasing prices and supportive policies, solar panels are exploding in popularity across New York. The state currently ranks:

• 4th nationally for cumulative solar capacity installed
• 2nd for solar growth in 2021 adding over 500MW
• 9th for projected 5-year solar expansion

Solar made up over 6% of New York‘s in-state electricity generation in 2021. Under the state‘s 70% by 2030 renewable standard, that number is expected to rise rapidly.

Over 100,000 New York homes have already gone solar. And the next 5 years should see similar rapid adoption as financial incentives phase down while electricity rates move higher across regions.

With increasingly attractive economics, solar shoppers have more choices than ever. Over 280 solar companies now operate in New York. But with so many options, where do you start?

That‘s what this guide aims to provide – a comprehensive overview of every aspect to weigh when considering home solar in New York.

Let‘s dive into the details!

What Do Solar Panels Cost in New York?

Average pricing for solar panels in New York ranges from $2.30 per watt up to $3.50 per watt. Given decreased equipment costs but regional variables, you‘ll generally pay between $14,000 and $21,000 to install a 6 kilowatt system.

But averages only tell part of the story. Actual solar panel cost depends on:

• Your specific location
• Roof type and sun exposure
• System size needed
• Equipment efficiency

For example, highly efficient SunPower panels cost roughly $0.75 per watt more than standard options from companies like REC Solar or Longi.

However, greater efficiency leads to 43% higher annual energy output from the same size system. So they can provide better financial performance despite 25% higher initial equipment prices.

Location also plays a major role. Permitting and grid connection costs vary widely across New York counties. Rural areas generally see lower pricing than dense urban zones.

Use the table below to compare average solar costs by region for a 6 kW installation:

So while statewide pricing averages around $2.86 per watt, actual solar panel costs can swing in either direction.

Getting quotes from at least 3 top-rated local installers is the best way to estimate pricing for your specific property.

What Incentives Exist for Going Solar in New York?

Beyond the monthly utility bill savings from generating your own sunlight, New York offers some of the strongest financial incentives to lower out-of-pocket solar costs.

Chief among them, the 26% federal solar tax credit (ITC) provides nearly $3,500 in credits for a 5 kW system. When claimed on your next tax return, the ITC saves over $1 per watt installed.

The state also provides up to $5,000 via a 25% New York solar tax credit. Plus additional incentives like:

• NY-Sun rebates – Up to $7,500
• Sales tax exemption – Saves ~$1,000 on 5 kW install
• Net metering – Get credited at retail electric rates
• Property tax exemption – Waived increase after solar install
• Community solar – Buy shares from offsite solar farms

Third party ownership through solar leases or PPAs allows installing solar with no upfront costs. But you won‘t qualify for federal or state tax credits and miss out on long-term ownership. Purchasing tends to provide the best return on investment.

Let‘s examine the combined savings from solar incentives and credits for a 5 kW purchase in Westchester County:

With over 50% of the system cost covered through credits and ongoing net metering benefits, solar becomes extremely affordable in New York.

How Quickly Do Solar Panels Pay for Themselves?

Another common question New York homeowners have is "how many years before solar panels pay off?" The answer can vary based on your specific conditions, but we can develop an estimate.

• Assume an average household uses 7,000 kWh of electricity yearly (at ~$0.22 per kWh)
• A properly sized 5 kW solar array for that home generates about 6,200 kWh per year
• At 90% production ratio (to account for real-world conditions over 25 years), lifetime solar output = 173,000 kWh
• Electricity savings valued at $38,060 over 25 years

Compare that to the $15,500 system cost, minus the $7,905 tax credits/incentives. The net out-of-pocket total equals $7,595.

With annual bill savings of $1,439, a 5 kW solar system would effectively pay itself off in under 6 years for this homeowner. After hitting that break-even point, their solar panels will continue generating free renewable energy for another 15-20 years!

Extending that analysis across your full 25 year savings shows an average annual return on investment of over 20%. As electricity costs rise while equipment prices stay flat, that ROI will keep increasing.

Clearly, with outcomes like that, solar is an extremely wise investment for New Yorkers serious about eliminating energy bills and securing financial returns.

How Do I Choose A Solar Company in New York?

With nearly 300 solar installers now operating in New York, it can get overwhelming evaluating all the options. Here is a quick checklist of what to look for as you compare quotes:

✅ NABCEP certified installation professionals
✅ Established local company (5+ years in business ideal)
✅ Reviews from 100+ recent New York customers
✅ Provides system production guarantee
✅ Handles all permits and grid connection paperwork
✅ Highly-rated equipment for your region (cold hardy)
✅ Monitors system performance and notifies you of any issues
✅ Quick emergency repair response time guarantees

Get Matched With Top-Rated New York Installers →

Reputable solar companies will provide a detailed analysis outlining:

☀️ System size recommendation matching your usage
☀️ Projected annual production accounting for roof specifics
☀️ All itemized costs – equipment, labor, fees
☀️ Eligible incentives you can utilize
☀️ Bill savings estimates and time to payback system

Using this solar analysis for your property, rather than generic estimates, ensures the proposal accurately reflects potential performance and savings.

Ready To Go Solar?

I hope this guide provided a transparent, comprehensive overview of everything to factor when weighing residential solar panels in New York. By understanding costs, incentives, estimated savings and vetting installers, you can determine if going solar makes sense for your situation.

To get free, precise quotes from the best solar companies near you, simply enter your address and power bill details below. They will custom-build and model proposals for your review. And remember, all consultations are 100% free!

Get Your Custom New York Solar Quotes

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2. Angie Hermann
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I welcome any additional questions – just ask! Let‘s chat about getting your home powered by the sun.