Hey neighbors, are those sky-high electricity bills every month got you thinking about solar panels? I put a system on my home a few years ago and can confirm first-hand—the savings are REAL.
As a long-time New York resident saddled with utility bills creeping towards $200 some months, I had enough. I crunched the numbers and took the solar plunge. With the sweet incentives in our state, my 8 kW array will pay for itself in under 10 years! Once the system hits that payback period, it’s all free power from the sun after that.
Let’s walk through why solar is a financial slam dunk for so many New Yorkers and exactly how you can cash in on all the rebates, tax credits and bill savings our renewable-loving state offers. I’ll provide some insider tips as a solar customer to ensure you maximize every dollar.
Why Go Solar in New York?
First, let’s get grounded on a few basics. New York has lofty goals to fight climate change by transitioning to 100% carbon-free electricity by 2040. That’s just around the corner! A centerpiece is the target to install 10 GW worth of solar panels statewide by the end of this decade.
- We’ve currently got about 4,400 megawatts of solar capacity up and running.
- So to hit the 10 GW mark, our solar stocks need to more than DOUBLE in the next 7 years. Big growth ahead!
I don’t know about you, but I’m planning to get a piece of the action. The state is basically begging people to add solar. And the incentives…hoo boy, do they make it attractive!
There’s another key factor that makes solar so appealing here – our sky-high utility rates. As a Central Hudson customer, I pay around 19 cents per kWh delivered. Con Edison bills are even worse! The typical NY home shells out $1,700 a year for electricity. And rates just seem to creep higher every year.
By locking in a fixed solar price for decades, you dodge the utility rate rollercoaster. Take my system for example. Over the past year my panels cranked out about 9,000 kWh. My utility payments dropped from $1,900 annually to $700. That’s $1,200 in immediate electricity savings, even as rates continue rising for my neighbors.
When you tally up avoided bills over 25+ years, solar nets over $23,000 in utility savings for a standard home array. And with incentives, you could cut the total installed price by 50% or more upfront!
Let’s uncover all the ways New Yorkers can slash solar costs…
New York State Solar Incentives—Cash in Now!
Solar incentives in New York state are among the most generous nationwide. And here’s the important thing to note: incentives can cover half or more of your total system cost. It’s basically free money on the table!
Between federal tax credits, state rebates, and other solar perks, I saved over $15,000 off what would have been a $30,000 sticker price. My out-of-pocket price ended up at $14,200 for a sweet 8 kW system. And with the utility savings, my investment earns a 60% annual return!
Let’s break down all the ways to save:
Federal Solar Tax Credit
The 26% federal Investment Tax Credit (ITC) for 2023 lets you deduct a quarter of your total solar installation cost from federal taxes owed. System, panels, labor, permitting fees, sales taxes—the credit covers it all.
- No annual limit; credit can be carried forward
- Covers both home battery storage and solar panel expenses
- phases down to 22% for systems installed in 2024
The table below gives you a sense of how much that all pans out to based on different solar setups:
| System Size | Total Cost | 26% ITC Savings |
|---|---|---|
| 4 kW | $11,600 | $3,016 |
| 8 kW | $23,200 | $6,032 |
| 10 kW | $29,000 | $7,540 |
Cha-ching! Up to $7,500 gone right off your tax bill.
NY State Solar Tax Credit
Known as the NY-Sun initiative, this state income tax credit complements the federal ITC beautifully. You can rack up credits equal to 25% of your solar costs, up to $5,000 max.
My 8 kW system example? I would’ve hit that $5,000 cap on the state credit. So combined, the state and federal tax incentives chopped $11,000 off my project cost.
Sweetening the deal even more, your new solar equipment also dodges NY state sales tax. That’s 4% back in your wallet.
Cash Rebates
For most parts of New York, you can stack on even more savings through the NY-Sun rebate program. This one sends straight-up checks back to solar owners per watt installed, up to $1,000 per kW.
That means rebates worth $4,000, $8,000 or even $10,000 depending on how extensive your array is. Cha-ching again!
Rebates mainly apply upstate closer to me. But ConEd and other downstate utility regions offer some nice upfront discounts and monthly bill credits too.
Here’s a snapshot of the potential cashback for different system sizes and utility regions:
| System Size | Upstate Rebate | ConEd Discount |
|---|---|---|
| 4 kW | $4,000 | $2,400 |
| 8 kW | $8,000 | $4,800 |
| 10 kW | $10,000 | $6,000 |
Even More Hidden Solar Perks
Whew! Still with me? I know it’s a ton to digest. But we’ve only just scratched the surface on opportunities to slash your solar cost in New York.
A few other key financial benefits that help solar payoff quicker:
- Net Metering – Utilities compensate excess solar energy fed to grid
- Property Tax Exemption – Solar value excluded for 15 years
- Electricity Savings – $1000s over system lifetime from utility avoidance
When all the incentives and savings stack up together, New Yorkers can recover their entire solar investment in UNDER 10 YEARS for a home system. That’s basically unheard of type of quick payback that also locks in decades of free renewable power.
Let’s walk through a full example…
Solar Payback Analysis for a New York Home
Let’s take a real-world 8 kW solar system for a New York suburban home. This would cover most typical household energy needs.
- 22 panel array with microinverters
- Premium equipment but not luxury top-of-market
- Rooftop pitch/direction well-suited for sun exposure
Okay, first tally up incentive values:
- Federal tax credit (ITC) at 26%: $6,032
- State tax credit at 25%: $5,000 cap reached
- Upstate rebate at $1,000 per kW = $8,000
Total Incentives: $19,032
Gross Pre-Incentive Cost: $30,800
- Net Equipment & Installation Cost: $11,768
Now let’s determine payback timeframe. With annual utility bill savings around $1,200 for a system offsetting 50% of household use, simple payback is just 9.8 years.
Once my system hits that threshold next year, it’s essentially an annual $1,200 bonus in my bank account from all the free solar power. Over the 25+ year panel lifespan, I’ll pocket over $23,000.
My panels increase the value of my home. And I’m doing my small part to transform New York’s energy mix for the better. That feels priceless!
Go Capture Your Free Money Now!
The financial case for solar in New York state keeps getting more compelling. All projections point to electricity rates continuing their rise over years ahead. Meanwhile, equipment prices and financing rates are so low right now.
There’s no better time than now to lock in decades of solar savings!
Hope walking through my own first-hand experience gives you confidence in the numbers yourself. I’m happy to chat more anytime and point you to my awesome installer.
Here are a few closing tips as you explore project options:
- Run quotes with 2-3 installers to compare equipment packages/prices
- Max your federal tax appetite over the next 5 years to leverage credits
- Size system to cover 50-100% of annual household electricity use
- Purchase option nets way more savings than leasing!
Reach out anytime for more advice! Let’s get your solar journey started.
