New York solar panels: The complete guide in 2025

Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average New York homeowner needs a 11.91 kW solar panel system to cover their electricity needs, which comes out to $33,482 before incentives. Prices range from $28,460 to $38,504, but after the federal tax credit, that drops by 30%, and New York has some great local incentives as well.

While this may sound high, it will pay off in New York. That's why over 65,000 New York homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 8.12 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.

Solar panel systems are expensive, but there are ways to finance your investment and reduce upfront costs.

• Cash purchase: You pay for your system outright, which typically provides the best long-term savings.

• Solar loan: You pay for your system in monthly installments like a lease but maintain ownership like a cash purchase. Generally, the best solar loans are subsidized clean energy loans through local incentive programs. If you don’t have access to that, a home equity loan or a personal loan are often your next best options. Private solar loans typically come with higher interest rates or upfront fees.

• Solar lease or power purchase agreement (PPA): You make monthly payments on your system like a loan, but a third-party company owns your system. You’ll either sign a solar lease or purchase the electricity the panels generate through a PPA. Third-party ownership models typically deliver the lowest savings and have earned some bad press. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.