The cost of solar panels typically starts at $20,000. Thanks to the federal 30% tax credit and NY State rebates, your final cost can be much lower, and long-term savings can exceed $100,000.
These are great numbers to look at, but what does it really mean? Here’s a full solar panel cost breakdown so you can see exactly where your money is going and why.
In the solar energy world, just like other industries, there is something called solar panel soft costs. This basically means pricing for anything needed for the installation that isn’t hardware.
These non-material costs include:
This can be from 50-60% of the total cost.
Your solar system is a collection of key parts working together. These main components represent a good portion of the total installation cost:
These make up about 40-45% of your total cost.
Feature |
Flexible Financing |
One-Time Cash Payment |
|---|---|---|
| Estimated Cost | Starting from $20,000+ after incentives | Starting from $20,000+ after incentives |
| Initial Payment | $0 Down – No upfront cost | Pay in full at installation |
| Total Lifetime Savings | Up to $100,000 in energy savings | Up to $100,000 in energy savings |
| System Ownership | You own it from day one | You own it from day one |
| Solar Incentives | 30% Federal Tax Credit, NYS & NYC Rebates, Property Tax Abatements | 30% Federal Tax Credit, NYS & NYC Rebates, Property Tax Abatements |
| Warranty Coverage | 25-Year Full System Protection | 25-Year Full System Protection |
| Guaranteed Energy Production | Yes | Yes |
| Permits & Paperwork | We handle everything, zero hassle for you | We handle everything, zero hassle for you |
| Smart System Monitoring | 24/7 real-time energy tracking | 24/7 real-time energy tracking |
| Ideal For | Homeowners, Businesses, Multi-Unit Buildings | Homeowners, Businesses, Multi-Unit Buildings |
Prices vary based on system design, roof complexity, and equipment.
System Size |
Avg. Price (Before Incentives) |
Avg. Price After 30% Federal Tax Credit |
|---|---|---|
| 5 kW | $20,000 | $14,000 |
| 7 kW | $28,000 | $19,600 |
| 10 kW | $40,000 | $28,000 |
For us New Yorkers, we have generous amounts of New York State tax credits. Not only that, but with incentives and rebates you can reduce upfront costs massively while increasing your savings long term. While we will help you navigate through New York solar panel incentives, here are some to take note of:
There are several factors dependent on the average cost of solar panels in New York. Everything is included, from the shape of your roof to the system’s size and the panels’ quality. While these variables affect pricing, they also allow you to customize a solar system that maximizes your savings and qualifies for more incentives.
Panel size is a key factor in solar panel cost. Larger systems produce more power but require a bigger setup. The ideal system size depends on your energy needs, roof size, and property type. Our local solar panel installers work with all property types – homes, businesses, and condos – to match the right system to your consumption.
Most home solar systems range from 5kW to 10kW, depending on how much household energy you want to offset.
Sizes are generally required to be shared or multi-unit, complicating installation a bit. Community solar programs and tax credits help bring down costs.
These are larger commercial systems of 50kW+, or more, requiring greater investment but offer much greater long-term savings and tax benefits for businesses.
Solar panel models play a big role in cost, efficiency, and durability, especially regarding weather conditions. Higher-efficiency solar panels have a big advantage as they generate more electricity from the sun. In turn, they are also durable and sturdy. Other panel models can offset initial payments but degrade faster in the long run.
Your roof plays a big part in your home’s journey to solar. Understanding its condition and style is key, as these factors directly affect your installation and the overall project.
If your roof is old and needs replacing soon, it’s best to do that beforehand. Complex roofs with many angles, dormers, or steep pitches mean more involved installed, which can affect the price.
Standard shingle roofs are easy. Materials like slate, tile, or certain metals found on some New York homes might need specialized tools or mounting, which can add to the cost.
Trees or nearby buildings creating shade affect how much power your panels make. We plan layouts to work around chimneys, skylights, or shading, sometimes we us microinverter technology to maximize energy production in tricky spots.
Both work, but flat roofs (common in NYC) often need custom racking to tilt panels for optimal sun exposure, which can be a different cost than direct mounts on pitched roofs.
A common question we hear is, “How long until my solar panels pay for themselves?’ This is called your payback period, and it’s when the money you save on electricity bills (plus any incentives) adds up to cover your initial investment. After this point, all the energy your panels make is essentially free electricity for your home.
For New York homeowners, the average solar payback period is between 5 to 7 years.
This is a great time frame, especially considering solar panels are built to keep producing clean energy for 25 years or more. This means you’ll enjoy many years – often 15 to 20 years or even longer – of nearly free electricity once your initial investment is recouped.
A few things can influence how quickly your system pays itself back.
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Incentives such as the 30% Federal Solar Tax Credit, New York State Solar Tax Credit, NYC Property Tax Abatement, and NY-Sun Rebates can be used to your advantage in lowering solar panel installation costs in NYC. Other options that help to reduce upfront expenses include our $0 down financing program. Also, investing in a system that is sized based on your energy usage ensures you are not overspending on unnecessary capacity.
Yes, solar panels are a smart investment in NYC. Due to high electricity rates and very generous incentives, both homeowners and businesses alike can realize up to $100,000 in long-term savings over the system’s lifespan. Moreover, net metering in New York will let you build credits for excess energy produced, further reducing your electricity bill. Most systems pay for themselves within 5-7 years, making solar a financially sound choice.
Our solar quotes in NYC cover the full installation, including solar panels, inverters, mounting hardware, wiring, and labor. Additional costs may arise for roof modifications, electrical upgrades, or battery storage. A detailed breakdown ensures full transparency on what’s included.
Yes, a permit is required to install solar panels in NYC to ensure compliance with building, electrical, and zoning codes. For more detailed information, visit the Department of Buildings Solar Panels page.
Solar panels do not require much maintenance because they have no moving parts. Their basic maintenance involves cleaning from time to time and checking the system for efficiency. Our panels come with a 25-year warranty, while inverters may need to be replaced after 10 to 15 years. Even with low maintenance, solar panels will continue generating savings beyond their installation date.
Make the smart choice for your wallet and the environment by switching to solar energy. Contact us now to learn about our solar solutions.
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