How Do We Rate Solar Companies?
TL;DR: We rate solar installers from 1 to 5 stars to help you pick the best one. High stars mean they’re really good at what they do and treat their customers right. Low stars? Not so much. We give credit to companies that have been around for a while, know what they are doing, have a high standard of workmanship and equipment, don’t hire subcontractors to keep the bar of solar installation quality high and have good local reviews from real customers (yes, we check if the reviews are actually real or fake). Companies we choose as top-rated know and can help with federal and local solar incentives to help you save, have good financing plans, and guarantee their work. We’re here to point you to the solar companies that truly rock, making going solar easy and worthwhile for you.
Check our detailed review process here.
Is It Worth Going Solar in New York?
Financial Savings: Solar power can lead to substantial electricity savings over the life of the system. When you compare the price of electricity per kilowatt-hour, solar emerges as a much cheaper option. For instance, a 7.6 kW solar system in Brooklyn, after factoring in the average sunlight, roof angle, and panel degradation over time, is expected to produce 233,329 kWh of electricity over 25 years. The cost per kilowatt-hour of home solar plus battery storage for this customer in Brooklyn comes to 6.5 cents per kWh.
Incentives and Tax Credits: Homeowners in New York can take advantage of ongoing federal, state, and local incentives. These include tax credits, rebates, and beneficial net metering policies. For example, the Investment Tax Credit (ITC) is a federal incentive that allows you to deduct 26% of the cost of your solar energy system from your taxes.
Increased Home Value: Installing solar panels can increase your home value. If you plan to sell your house in the future, solar panels can be an attractive perk for potential homebuyers.
By generating your own electricity, you can minimize your reliance on the grid. This creates stability during periods of electric rate changes.
*However, the decision to go solar also depends on your specific circumstances, such as your energy consumption, the orientation and shading of your roof, and your budget. It’s recommended to get a personalized quote from a solar installer to understand the potential savings and payback period for your home.
How much does solar save homeowners in New York?
Solar Savings: A typical 10 kW solar system in New York can save homeowners more than $100,000 in electricity costs over its lifetime. The average homeowner saves $36,397 over the lifetime of their solar system.
Payback Period: The payback period is the time it takes for the energy savings to exceed the cost of installing solar panels. In New York, the average payback period for residential solar is around 7-10 years, although this can vary depending on your utility rates, incentives, system size, and other factors.
Comparison with Traditional Electric Bills: Before installing solar panels, homeowners are subject to fluctuating electricity rates and monthly bills from their utility company. After installing solar panels, homeowners can generate their own electricity, reducing or even eliminating their electricity bills. Any excess electricity generated by the solar panels can be fed back into the grid in exchange for credits, further reducing electricity costs.
Bills After Solar Installation: After solar installation, the balance due on your monthly bills will be much lower – or even negative – because your solar production replaces and offsets the cost of buying grid electricity from your utility. Oftentimes, electric bills after solar installation are zero or credited through net-metering, meaning the homeowner sent more electricity to the grid than they consumed.
What is the average cost of going solar in New York?
As of March 2024, the average cost of a solar panel system in New York is approximately $3.10 per watt, including installation. For a typical 5 kW system, this comes out to about $15,507 before incentives. However, prices can range from $13,181 to $17,833.
- Cost After Incentives: The Federal Investment Tax Credit (ITC) can lower the cost of your solar system by 30% of all your solar equipment and installation costs. So, after applying the ITC, the cost of a 5 kW system could drop to around $10,855.
- Cost Variation: The cost of solar panels can vary based on the system size, equipment type, and installation factors. For instance, the cost of a solar panel system in New York ranges from around $30,000 to $50,000 before tax credits.
- Cost per Watt: The cost-per-watt is a valuable metric for comparing system sizes and types. The cost-per-watt in New York averages around $3.20.
*It’s important to note that these are average costs and the exact cost can vary depending on specific circumstances. Therefore, it’s recommended to get a detailed quote or consult with a solar professional to understand the potential costs in your specific situation.
New York Solar Incentives
New York offers several incentives and rebates for homeowners who choose to go solar:
Federal Incentives: The federal government offers the Investment Tax Credit (ITC), which allows homeowners to deduct 30% of the cost of their solar energy system from their taxes. This credit applies to systems installed between 2022 and 2032.
New York State Solar Equipment Tax Credit: This state-level incentive allows you to deduct 25% of the cost of your solar energy system from your state taxes, up to $5,000.
Megawatt Block Incentive: This program provides an upfront dollars-per-watt ($/W) rebate for both commercial and residential solar panel systems. The size of your subsidy depends on the size of your system, the current Megawatt block, and your region.
NY-Sun Initiative: This is an umbrella program for a number of solar industry support mechanisms in New York State. It provides the backbone for the state’s Community Solar and K-Solar programs.
Net Metering: This policy ensures you get paid a fair price for the solar electricity that you send into the grid. Any credits for excess solar power that you accrue are stored in a “credit bank” and can be used in future months.
Sales Tax Exemption: Solar energy systems are exempt from state sales tax.
Property Tax Exemption: Any increase in property value from installing solar is exempt from property tax.
*These incentives make solar energy a more affordable and attractive option for homeowners in New York. However, it’s important to note that most incentive programs are only authorized for a certain period of time or until funding runs out.
Net Metering Policies in NY
Net Metering Basics: Net Metering is a billing arrangement between you and your utility. When your solar system produces more electricity than you use, the excess power is exported back to the grid. In return, you receive credits on your electricity bill.
New York has offered net metering to solar homeowners since 1997. As of March 2023, net metering is still available in New York State.
Transition to VDER: New York is currently transitioning to a new solar billing program called Value of Distributed Energy Resources (VDER). VDER is designed to reflect both the benefits and costs of home solar, providing a more accurate billing rate for excess solar energy.
Customer Benefit Contribution (CBC): New Yorkers who go solar qualify for full-retail net metering, but have to pay a monthly CBC charge. The CBC charge ranges between $0.30 to $1.33 per kilowatt of solar installed on your roof, depending on your utility.
Choice of Plan: Homeowners can choose to either use the current transitional net metering program, called “Phase One plus CBC”, or they can opt into the VDER program.
Benefits of Net Metering: Net metering can provide an incentive to go solar by offsetting your electric bill, save you money on your electric costs over time, help you become less reliant on your utility company, and allow you to generate clean, renewable energy.
Are There Any Community Solar Programs in New York?
Yes, New York offers several community solar programs:
- Community Solar for Your Home – NYSERDA: This program allows New Yorkers to save money every month on their electric bills. Unlike traditional solar, where an array is installed on your roof or property, community solar is installed at an offsite location. You can subscribe to the community solar project and receive credits on your regular electric bill for the clean energy produced.
- Find a Community Solar Project – NYSERDA: This tool helps New Yorkers find community solar providers offering subscriptions. The results show the providers offering community solar in your utility’s service territory.
Community solar programs help support local renewable energy jobs and project development in New York, connecting you directly to clean energy projects in your community. You can save 5-10% off of your annual electricity costs with community solar.
These programs make it easier for homeowners, renters, and businesses to access the benefits of solar energy, even if they can’t install solar panels on their own property. They also support the growth of local renewable energy jobs and project development.
