What is the Tax Credit for Solar Panels in NY?
The tax credit for solar panels in NY is the Solar Energy System Equipment Credit. It is available for purchased solar equipment, including systems installed under a financing agreement.
Power Solutions is one of the most trusted solar panel installers on Long Island. Learn how tax credits can reduce the real cost of switching to home solar, and talk to us today to begin your solar journey.
How Much is the New York Solar Energy System Equipment Credit Worth?
New York’s state solar tax credit is worth 25% of your solar installation and is non-refundable.
- You are eligible for a 25% state solar tax credit when you install solar at your principal residence in New York State.
- Although it’s non-refundable, if the credit exceeds what you owe, you can carry the excess over for up to five years.
- The credit is limited to a maximum value of $5,000.
This credit significantly reduces the actual cost of switching to solar panels on Long Island. The savings can increase your return on investment and reduce the time it takes your solar system to pay for itself.
What is the Average Cost of a Solar Panel Installation
According to the latest data collected by Consumer Affairs, the average cost of a New York solar panel installation in 2025 was $19,389, resulting in average 25-year savings of up to $71,770.
In the example of an average system, the New York State solar tax credit could cover more than 25% of the total system cost.
How Do Solar Panels Pay for Themselves?
Solar panels pay for themselves by reducing your electrical bill on Long Island.
Solar is often promoted as being “free energy”, which is true in the sense that savings eventually cover the cost of installation and then provide a return on the initial investment. Long Island solar systems typically have a payback period of around 6 to 10 years, depending on the size of the system. Solar panels last at least 25 years, allowing plenty of time to enjoy long-term savings after the payback period.
How Do I Know if Home Solar is Right for Me?
The best way to learn if solar is the right fit for your home is to talk to a qualified solar contractor on Long Island. Power Solutions is one of the most experienced solar contractors in New York. We take crucial steps to help ensure that home solar is a valuable investment.
- We provide detailed consultations and an in-depth cost/benefit analysis. This analysis looks at your monthly electrical consumption, your average bill, and predicts savings over the lifetime of a potential solar system.
- We use efficient solar panels and microinverters. A system with microinverters is more efficient under different conditions, because each panel operates independently within a larger system. This means more average output, even if your solar array is partially shaded at certain times of day.
Solar panels can help you save on your monthly electric bill, but there is a cost to install them. We help you understand the investment in a long-term context so you can make the best decision for your financial situation.
Talk to Your Local Solar Installer on Long Island
Are you ready to learn more about solar and see what you could save? Talk to the team at Power Solutions and see how our data-driven approach to solar installation makes everything clear and predictable. Contact us today for your free home solar estimate.
