What is the Solar Payback Period on Long Island in 2026?

The average solar payback period on Long Island (Suffolk and Nassau Counties) is between 7 and 10 years in 2026. The solar payback period, sometimes called the break-even period, is the time it takes to generate savings equal to the total cost of installation. It’s one of the most important metrics to determine the real value of solar.

How Tax Credits Affect the Break-Even Period After You Install Solar Panels

Estimates in the last 10 years have often cited Long Island as having a solar payback period of around 7 – 8 years. The figure has increased due to a change in solar tax credits.

• The Federal Solar Tax Credit expired at the end of 2025.

Although homeowners can no longer claim a federal credit, New York State still offers a significant credit.

• New York’s solar tax credit is worth 25% of the total cost of installation.
• It is capped at $5,000 as of February 2026.
• Some homeowners may qualify for additional rebates and incentives, such as PSEG LI’s Battery Storage Rewards Program, which can decrease the upfront cost of a solar battery and provide credits/rewards for supporting the grid during periods of high demand.

Incentives vary depending on where you are and the type of system you install. It’s important to choose a top-rated Long Island solar company that can take you through the incentives that apply in your case. Power Solutions is one of the most experienced solar contractors on Long Island and has some of the highest customer ratings in the region. Our team will happily explain solar incentives and potential savings, and how they will affect your payback period.

The Cost/Benefit Analysis for Solar Panels on Long Island

At Power Solutions, we believe that hard data is crucial to your decisions around solar panels and battery backup systems. An initial energy savings evaluation will look at your home’s solar potential (based on satellite data) to estimate savings and the payback period.

After a detailed consultation, we will visit your home to assess your property with a physical inspection and drone survey. We will consider the size of your roof, your home’s average consumption, orientation to the sun, and the impact of surrounding shade structures. Collecting this data helps us build an accurate computer model to predict your long-term savings. We will prepare a cost/benefit analysis so you can see how much you would save with solar.

Is Long Island Solar Still Worth it in 2026?

Yes, Long Island solar is still worth it in 2026 and will be for many years unless there are drastic (and unrealistic) changes in the energy market. Long Island has some of the highest electricity rates in the nation, so installing solar here is often more valuable in many of the sunniest states like California, Texas, Nevada, and New Mexico.

Think of solar as an investment in your future savings. By generating electricity on your rooftop, you will pay less to PSEG LI. If rates increase, the real economic value of your solar panels will increase. Even with a 10-year payback period, you will have another 15 years of savings from solar panels that are expected to last at least 25 years.

Don’t assume the solar potential of your home. Get accurate data from a team that is trusted to install the best solar panels on Long Island. Get your free estimate and schedule your energy savings evaluation with Power Solutions today.