New York's electricity prices average $0.19/kWh, well above the national average of $0.14/kWh. The state consistently ranks in the bottom five for per capita electricity consumption, and the bottom two for capita energy consumption generally. This is largely attributable to the fact that nearly 30% of the state's population relies on public transit for their work commute.
The average cost of a 6kW (equivalent to saving roughly 100 trees a year) solar power system starts around $21,000 in New York. Before any incentives, in the first year you’d save about $1,500, compared to if you had been paying the normal rates for the energy you used. With incentives you can effectively halve the initial cost while saving on the energy bill. These savings can continue for well over 25 years, improving with inflation.
We're proud to have sold over 800 solar power systems in New York just since 2016. Our NABCEP-certified sales team have helped to develop PV systems for some pretty diverse applications. Here are two highlights:
This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:
From our example above, the homeowner purchased a 6.2kW system to offset their energy bill. Overhead cost was $21,000, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over just six years.
Most solar power systems have a warranty lifetime of 25 years. In that time, between incentives and paying lower rates you could make a profit of around $34,000 - more than the up-front cost of the system!
Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.
Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.
Starting with that same 6.2kW system costing $21,000 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $1,500, you could see a revenue surplus of about $9,500 at the end of the first year.
Save some of that money though. Your loan payments will likely exceed your power savings by about $30/month for the 15-year term. Once the loan is paid off, you can expect to save about $1,500 a year. Over 25 years you could expect to make about $27,000.
With a Power-Purchase Agreement (PPA) the homeowner leases their roof to an outside party, usually a power company. Generally PPAs feature a fixed price per kWh, with either a fixed term or an annual escalator.
With a PPA, the cost of installation, repair, and maintenance to the homeowner is usually $0.00. For that 6.2kW system, with a PPA you could expect to save about $1,500/month on energy. Over 25 years, you could see about $15,000 in revenue - without accounting for inflation. That’s technically an infinite return!
PPA’s can be complicated, as you are effectively ceding at least some control of your home to the third party, but they are an excellent way to get into solar because they have no overhead.
Data from DSIRE. For more info visit: https://www.dsireusa.org/
|Name||Implementing Sector||Program Type||Administrator||DSIRE ID|
|Local Option - Solar, Wind & Biomass Energy Systems Exemption||State||Property Tax Incentive||192|
|Solar Easements & Local Option Solar Rights Laws||State||Solar/Wind Access Policy||309|
|NY-Sun PV Incentive Program (Residential, Low-Income, and Small Business)||State||Rebate Program||New York State Energy Research and Development Authority||701|
|Appliance and Equipment Energy Efficiency Standards||State||Appliance/Equipment Efficiency Standards||1569|
|Town of Southampton - Photovoltaic (PV) Rebate Program||Local||Rebate Program||Town of Southampton||3177|
|Local Option - Refuse (Including Energy Waste) and Garbage Improvement Districts||State||PACE Financing||3662|
|Local Option - Municipal Sustainable Energy Programs||State||PACE Financing||Programs administered locally||3765|
|Mandatory Low Income Alternative Energy Option||State||Line Extension Analysis||3891|
|New York City - Residential Solar Sales Tax Exemption||Local||Sales Tax Incentive||4703|
|Local Option - Solar Sales Tax Exemption||State||Sales Tax Incentive||4857|
|Residential Wood Heating Fuel Exemption||State||Sales Tax Incentive||New York State Department of Taxation and Finance||4874|
|Suffolk County - LEED Program for County Construction||Local||Energy Standards for Public Buildings||4993|
|NY Green Bank||State||Other Incentive||NY Green Bank||5539|
|Energize NY Finance||Non-Profit||PACE Financing||Energize New York||5546|
|EFS New York Loan Program||State||Loan Program||5574|
|ConEd (Electric)- Demand Management incentive||Utility||Rebate Program||ConEdison and NYSERDA||5664|
|NY-Sun Commercial and Industrial Incentive Program||State||Grant Program||New York State Energy Research and Development Authority||5755|
|Clean Energy Standard||State||Renewables Portfolio Standard||New York Public Service Commission||5883|
|New York State Electric and Gas - Energy Profiler||Utility||Energy Analysis||New York State Electric and Gas||14074|
|Rochester Gas & Electric - Energy Profiler Online||Utility||Energy Analysis||Rochester Gas & Electric||14081|
|Rochester Gas & Electric - Energy Efficiency Programs||Utility||Energy Analysis||Rochester Gas & Electric||17300|
|Central Hudson Gas & Electric - Commercial Energy Retrofits||Utility||Energy Analysis||Central Hudson Gas & Electric||17439|
|Rochester Gas & Electric - Hourly Pricing Program||Utility||Energy Analysis||Rochester Gas & Electric||17462|
|U.S. Department of Energy Industrial Assessment Center (IAC): Syracuse University||Federal||Energy Analysis||U.S. Department of Energy||17599|
|Consolidated Edison Co. Of New York - Commercial and Industrial Energy Efficiency Rebates and Incentives||Utility||Other||Consolidated Edison Co. Of New York||17638|
|New York Industrial Retential Network - RenewableNY Program||Local||Energy Analysis||New York Industrial Retential Network||18549|
|National Fuel (Gas) - Rebates||Other||Energy Analysis||National Fuel (Gas)||18820|
|Rochester Gas & Electric - Wind Energy||Utility||Other||Rochester Gas & Electric||20322|
|The BOC - Building Operator Certification Program||Utility||Training and Information||The BOC||21650|
|National Grid - Existing Facility Incentives||Utility||Energy Analysis||National Grid||21651|
|National Grid - Energy Profiler Online||Utility||Energy Analysis||National Grid||21653|
|National Grid - Power Quality Enhancements Program||Utility||Other||National Grid||21685|
|National Grid - Enhanced Metering||Utility||Energy Analysis||National Grid||21687|
|National Grid - Energy Saving Programs||Utility||Energy Analysis||National Grid||21715|
|National Grid - Rhode Island Energy Efficiency Services||Utility||Energy Analysis||21716|
|National Grid - New Construction Program||Utility||Energy Analysis||21717|
|Northeast Energy Efficiency Council - Building Operator Certification (BOC)||Other||Training and Information||Northeast Energy Efficiency Council||21737|
|Energy Efficiency Resource Standard||State||Energy Efficiency Resource Standard||New York Public Service Commission||21863|
|PSEG Long Island- Commercial Solar PV Feed-in Tariff||Utility||Feed-in Tariff||PSEG||21865|
|PSEG Long Island- Fuel Cell Resource Feed-in Tariff||Utility||Feed-in Tariff||PSEG Long Island||21866|
|Rochester Gas & Electric - CA$H Back||Utility||Other||Rochester Gas & Electric||21952|
|Northeast Energy Efficiency Partnerships - EM&V Forum||Non-Profit||Training and Information||Northeast Energy Efficiency Partnerships||22022|
|Energy Conservation Improvements Property Tax Exemption||State||Property Tax Incentive||New York State Department of Taxation and Finance||22072|
|NYSERDA Bulk Energy Storage Incentive Program||State||Rebate Program||NYSERDA||22097|
|Con Ed Demand Management for Industrial and Commercial Customers||Utility||Rebate Program||ConEdison||22108|