Free Solar Panels in New York: How to Get Started

New York is a state with electricity rates higher than the national average, but it also means there’s a potential to save big with solar. Installing a solar system requires a significant upfront investment, which can be difficult for homeowners. But if you’re planning to switch to solar, there’s a good chance you get free solar panels in New York.

You, however, don’t have ownership of these panels, so an alternate option is to opt for the solar incentives on offer. This guide discusses the way you can get free solar panels, the incentives, and your savings with installing a solar system. So, without further ado, let’s dig in!

How much do solar panels cost in New York in 2024?

Solar panel prices in New York range from $2.68 to $3.62 per watt, averaging $3.15 per watt. It’s just higher than the national average of $3.00 per watt. Now, the actual cost of solar panels depends on your energy usage, the size, type, and the manufacturer, but here’s an estimation:

As per EIA’s Average Monthly Bill-Residential Report 2022, the average electricity consumption of US residents was 592kWh, so 7kWh should suffice your power needs. Considering $3.15 as the average per-watt cost of solar panels in New York, an average resident pays around $22,000, excluding the incentives.

Here’s the estimated cost of solar panels with size in the state:

System Size (in kW)	Estimated Average Cost
3	$9,450
4	$12,600
5	$15,750
6	$18,900
7	$22,050
8	$25,200
9	$28,350
10	$31,500

You can invest in quality, efficient, cheaper solar systems like Renogy Bifacial 450 Watt Monocrystalline Solar Panel. These are around 30% efficient (much higher than traditional systems), durable, and efficient. You need around 6-7 units to build a 3kW system, costing about $5,260. Even after including the installation costs, you might end up paying less than the state average.

How to get free solar panels installed in New York

Multiple programs in New York offer free solar panels and installations to homeowners, but your options vary with where you live, energy usage, your ideal system, and income status. Depending on these factors, you qualify for even more financial benefits like tax credits and rebates. Here are the options to get free solar panels in the state:

Power Purchase Agreement (PPA)

The best way to get “free” solar is to establish a PPA between you and a state-licensed solar energy company. Under this, the company bears the full cost of the panel and the installation. Technically, the company is the owner of these panels. They are also responsible for any maintenance or repairs the system might require.

Unlike the unpredictable costs of traditional utilities, you must pay a fixed cost for the electricity you procure from the solar system. It can be a great option if you can’t pay the sum upfront for solar panels. You can still reap the perks of solar energy and save a chunk of dollars on electric bills.

New York Solar Programs

Although New York doesn’t offer any rebates on solar system installation, it has some of the best incentives in the country. The best is Solar Energy System Equipment Credit, where the credit is equal to 25% of your qualified equipment expenditures and is limited to $5000.

Other than that, there’s the NY-Sun Initiative Megawatt Block Program, which pays you for every kW of energy you generate from solar panels. It varies with where you live; for instance, the rate is $0.20 per watt for Con Edison service territory and $0.30 per watt in upstate regions.

Other than that, you can look for incentives from local governments and utility companies, which, combined as a whole, can deliver massive financial returns.

New York Solar Incentives and Tax Credit

Although the benefits of solar panels are pretty apparent, their upfront cost remains a deterrent. Luckily, there are a number of local, state, and federal programs that can decrease the expense. These are as follows:

Federal Tax Credit: This federal incentive, also known as the Residential Clean Energy Credit or Investment Tax Credit, allows residents to get 30% tax credits for their fully installed solar system. It, however, dips to 26% for solar panels purchased after 2033 and 22% for after 2034. And there’s no cap on the amount you can claim.

Solar Energy System Equipment Credit: Under this program, eligible homeowners can get a 25% tax credit on the purchase of solar panel systems. The amount is, however, limited to $5,000.

Megawatt Block Incentive: Also known as the NY-Sun Initiative Megawatt Block Program, it provides incentives to homeowners in certain parts of the state, which equals the number of megawatts they generate. For example, people in Upstate New York get up to $0.30 per watt, which translates to a refund of $2,400 for an 8kW system.

NY-Sun Initiative: NY-Sun Initiative overlooks the Megawatt Block Incentive and others such as EmPower+ or Affordable Solar Program. It lowers the cost of solar systems for people whose income is 80% less than the median income of the country.

Net Metering: Similar to other states, New York has its net metering programs for residents using electricity from regulated providers such as Con Edison, PSE&G, and National Grid.

Net metering in New York is available for systems less than 25kW. With the program, you can bank the extra electricity your solar system generates with utility companies. Then, you can pull those banks when the system isn’t producing much power.

Property Tax Exemption: Under the Real Property Tax Law (RPTL) Section 487 of New York State Real Property Tax Law, solar energy systems won’t cause any property taxes to increase for up to 15 years. In other words, solar panel installations won’t be factored into property tax calculations.

How much could you save by going solar in New York?

If you're considering solar in New York, the biggest win is the amount of savings you'll see over the years. Although solar comes with a hefty price tag, it is more cost-effective than paying ongoing electricity bills.

Considering the average electricity price and consumption at 23.60 cents per kWh and 592kW, respectively, the average bill of a New Yorker stands at $139. Let’s assume a 5kW solar system meets all your energy needs, so you save around $1,668 every year. So, with $15,750 being the average price of a 5kW solar system in New York (barring incentives), your payback period will be around ten years.

Besides applying incentives (federal, state, and local), a 5kW solar panel would cost around $10,316, which cuts down the payback period to six years. You can also opt for a net metering program to earn credits and further reduce the payback period. After that, you get free electricity for a lifetime and earn credits, amounting to your savings of up to $40,000 in the next 20 years.

In addition to electricity savings, solar and battery storage can increase your property value, especially in New York. Properties with solar systems are valued around 5% more than homes without them. In short, the possibility of saving is huge when you go solar in New York.

How to determine if solar panels are worth it for your New York home

New York isn’t particularly a sunny state, and it sees a fair number of cloudy days. Although the metrological department hasn’t given a fixed number for NYC’s sunshine hours, the city averages around 205 cloudy days a year. Besides, energy assessment programs and tax incentives make it difficult to justify the upfront and long-term savings.

The best way to determine the worthiness of solar panels is to contact a trusted local contractor. They will analyze your home setup, roof capacity, and exposure to the sun. They’ll also help you parse through various incentives for which you’re eligible.

Conclusion

The free solar panels in New York can be a viable option if you don’t have the financial ability to spend big on the solar system. There are plenty of incentives (federal, state, and local) available to bring down the price to almost half. Regardless, the opportunities to save with solar panels are huge. Or you can opt for affordable Renogy solar panels. Despite being affordable, these are reliable, durable, and more efficient than traditional solar panels.

FAQs

1. Can solar panels be installed for free in New York?

Yes, solar panels in New York can be installed for free. For that, you need to enter into a Power Purchase Agreement with a state-licensed solar energy company. They will bear the cost of installation and equipment and are technically the owners of the system. You will pay a fixed rate for the electricity you consume, which is still less than the traditional electricity bills.

2. How much value does solar add to a home in New York?

There isn’t a fixed value as to how much a solar system adds value to a home in New York, but some reported an increase in the range of 4.1-5.4%. For a median-valued home, this translates to an additional $37,800 in value.

3. How long do solar panels last?

Solar panels last for decades, with an estimated lifespan between 20-40 years. Most companies including Renogy provide a 25-year warranty on their solar panels after which their efficiency and power production capability decreases. However, Renogy’s solar panels are made with advanced encapsulation materials and multi-layer sheet laminations to provide 95% of their rated power after five years, 90% after ten years, and 80% even after 25 years.