The Advantages and Disadvantages of Switching to Solar Power in New York State: Incentives and Drawbacks

The Advantages and Disadvantages of Switching to Solar Power in New York State: Incentives and Drawbacks

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Going Solar in New York State: Pros, Cons, and Incentives

By Sam Wigness | Dec 29, 2023

At first glance, New York State and rooftop solar don’t exactly feel like a natural pairing.

The Empire State isn’t exactly known for sunshine, but between sky-high utility rates and some of the country’s best state-level solar incentives, going solar in New York State is a great long-term investment.

In this article we’ll cover:

See how much you can save by going solar in New York State.

Pros and cons of solar in NY State

Let’s start with a birds-eye view of the pros and cons of going solar in New York State.

Pros Cons
Home solar is cheaper than buying grid electricity New York isn’t especially sunny
Tax-free increase in home value Need cash or access to financing
Lower carbon footprint Panels (usually) stay with home if you move
Contribute to a cleaner, more resilient grid
Robust slate of federal and state incentives
1 to 1 net metering

The pros of going solar in New York State

Despite receiving less sunlight than much of the country, New York State is one of the leaders in residential solar adoption and ranks sixth for projected growth over the next 5 years.

That’s largely due to the state having some of the highest electricity prices and arguably the best solar incentives. In other words, solar is more affordable than grid electricity in New York State – plain and simple.

Let’s crunch the numbers using an actual quote presented to a solar.com customer in Brooklyn to see how it pencils out.

Related reading: Going Solar in Hudson Valley New York: Incentives, Savings, and Installers

Solar is much cheaper than grid electricity in New York State

The biggest advantage of going solar in New York State is substantial electricity savings over the life of the system.

Yup, solar comes with a big scary price tag, but when you compare apples to apples – the price of electricity per kilowatt hour – solar emerges as the much cheaper option.

Let’s take a look at a real quote for solar and battery presented to a solar.com customer in Brooklyn, NY to see how it stacks up against paying for grid electricity.

7.6 kW solar system Amount
Gross price $36,740
NYSERDA rebate and cash discount -$7,856
Contract price $28,884
State and federal solar tax credits -$13,665
Net cost $15,219

Factoring in the customer’s average sunlight, roof angle, and panel degradation over time, the 7.6 kW system is expected to produce:

  • 10,141 kWh of electricity per year
  • 233,329 kWh of electricity over 25 years

If you divide the net cost of the project by the lifetime production, the cost per kilowatt-hour of home solar plus battery storage for this customer in Brooklyn comes to 6.5 cents per kWh.

If you add in 11.4 kW of battery storage for $10,000 (after discounts and tax credits), the cost rises to 10.7 cents per kWh.

Now, let’s compare the cost of electricity from home solar to the cost of grid electricity.

 

 

Solar vs grid energy prices in New York

Source of electricity Cost of electricity (cents/kWh) Cost per year of 10,141 kWh of electricity
Solar.com – solar only 6.5 $659
Solar.com – solar + battery storage 10.7 $1,085
Grid – New York State average 21.63* $2,193

*June 2023 per EIA.

When comparing apples-to-apples, solar electricity – even with battery storage – is substantially cheaper than grid electricity in New York State. Going solar also fixes your electricity costs at a low rate – sort of like buying a house to hedge against the constantly rising cost of rent.

From 2017 to 2022, electricity prices statewide increased at an average rate of 3.57% per year. Here’s how the cost of solar versus grid energy in New York compares over 20 years of 1:1 net metering (including the CBC fee).

chart depicting the cost of grid electricity versus home solar in New York State

One way to think about going solar is buying electricity in bulk at a deep discount. Sure, it takes some cash or financing to do it, but the investment more than pays for itself in the long run.

Based on a real binding quote for a solar.com in Brooklyn, a typical solar customer in New York City could save over $45,000 over their 20-year net metering period – almost enough to buy six tall beers at a Yankees game!

Project type Break-even point 20-year savings
Solar-only (cash) Year 6-7 ~$45,000
Solar-only (20-year loan) Day 1 ~$35,000

A good chunk of these savings are created by New York State’s solar incentives, which we will cover later in the article. But, for the sake of argument, let’s say you paid the full sticker price of $36,740 for a 7.6 kW solar system. You can still save over $25,000 over 20 years.

Solar increases home value in New York State

In addition to electricity savings, solar and battery storage can increase the value of your home – especially in New York State.

Data analysis by Zillow found that homes with solar panels in New York City sell for 5.4% more than comparable homes without them. The 5.4% premium for solar panels was higher in New York City than any other major metro, and higher than the national average of 4.1%.

Solar panels provided a markup of $23,989 to the median-valued home in 2019. After three years of rapid home price growth, a 5.4% premium for solar panels would amount to $37,800 for a median-priced home in New York City in 2022.

And if you’re worried about solar panels increasing your property value, take a deep breath. In most of New York State there is a 15-year property tax exemption that applies to the value of solar systems. You still have to pay property taxes, but the value of your solar system will not increase your property tax rate unless your local government opts out.

Better yet, New York City has the Solar Electric Generating Systems Tax Abatement Program, which can reduce what you own in property taxes by up to 30% of the project cost. We’ll cover this more in-depth later in the article.

Related reading: 5 Things to Know About Going Solar in Con Edison New York

Home solar can help New York State clean up its energy mix

As of June 2023, more than 50% of New York State’s electricity generation came from natural gas, which emits 12 times more lifecycle emissions per kWh than rooftop solar.

chart depicting New York's electricity generation mix in June 2023

Natural gas is mainly methane, a greenhouse gas with 80 times the warming effect of carbon dioxide. Before it’s even burned, natural gas accounts for 29% of methane emissions and 3% of total greenhouse gas emissions. Once natural gas is burned, it emits carbon dioxide and particulate matter that contribute to climate change and local air pollution.

Less than 7% of New York State’s electricity mix comes from non-hydroelectric renewables like solar and wind. Homeowners can help move the needle away from fossil fuels by installing rooftop solar and battery storage.

 

112 thoughts on “The Advantages and Disadvantages of Switching to Solar Power in New York State: Incentives and Drawbacks”

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