Cost of Solar Panels in New York

Solar Panels in New York: Pricing, Savings, and Financial Benefits

Key Details

• The average cost of solar panels in New York is $19,200 (before the federal tax credit)
• In 2021, the average price per kWh of grid electricity in NY was 16.11 cents; 5.01 cents higher than the national average.
• Solar panel installation costs depend on wattage and range from $15,800 to $44,200 before tax credit.
• To power an average home with solar panels will require ten to fifteen 3.5 kWp panels which will produce 12,500 kWh of energy each year.

How Much Do Solar Panels Cost in New York?

As of 2023, New York solar panels cost an average of $3.15 per watt, this figure is higher than the national average of $2.93 per watt. The average solar panel cost in New York is about $19,200. However, after applying for the federal tax credit, the average cost of solar panels in New York will fall to about $13,500.

Solar installation cost in New York for 5 kW and 6 kW panels ranges from $15,800 to $19,000. These figures reduce to $11,700 and $14,000 after applying the investment tax credit (ITC).

New York State offers solar tax credits and other state programs and incentives. As of 2021, New Yorkers pay an average of 16.11 cents per kWh of grid electricity, this figure is 5.01 cents higher than the national average of 11.10 cents per kWh.

Average Solar Panel Cost in New York

How Many Solar Panels do I need for a 3-bedroom Home in New York?

The number of solar panels for a 3-bedroom house in New York depends on factors that include but are not limited to:

• Energy consumption
• Solar panel wattage
• Climate conditions (sunlight)

A 3-bedroom house in New York typically covers 1,200 to 1,400 square-foot of space and runs on an average of 10,600 kWh of electricity annually.

Producing this amount of energy will require 10 to 15 solar panels of 3.5 kWp (kilowatt peak). The kWp of solar panels is the peak performance of the system on sunny days.

How Many Solar Panels do I need for a 4-bedroom house?

A 4-bedroom house in New York measures 2,500 square feet. The number of solar panels you need for a 4-bedroom house depends on your yearly energy consumption.

Typically, a 4-bedroom home consumes about 11,000 kWh of electricity annually. If you live in New York and with a production ratio of 1.2, you need about 23 400-watt solar panels (11,000 / (1.2 x 400)).

Do all Solar Panels Produce the Same Energy?

Solar panels do not all produce the same energy. Under similar weather conditions, the amount of energy solar panels produce depends on their wattage ratings and production ratios.

Solar panels with higher wattages produce more electricity than the lower-wattage ones. For instance, a 400-watt solar panel produces more energy than a 200-watt solar panel, which in turn produces more than a 100-watt panel.

For solar panels with similar wattages, those with higher production ratios will produce more energy. For instance, two different brands of solar panels have production ratios of 1.4 and 1.6. The one with a production ratio of 1.6 will produce more energy.

Is it Better to Lease or Buy in New York?

Buying or leasing offers unique benefits. The best option is one that fits your budget and meets your needs.

A cash purchase confers ownership of the solar panel system to the buyer, while a lease is a third-party ownership (TPO) structure. With a lease, the solar system is owned and operated by the installation company, and the property owner pays for power consumption at a predetermined price for 25 years.

The electricity rate for lease purchase is usually 10% to 30% lower than the average cost of electricity.

Pros of Cash Purchase:

• The solar system may be eligible for tax credits and incentives
• It insulates the solar system owner from future increases in the price of solar energy
• It helps the owner to maximize savings on solar energy.

Cons of Cash Purchase

• The owner is responsible for the system’s maintenance
• Interest payments on loans (if the purchase is financed through loans)
• Solar systems are expensive to install and require huge capital that may not be available

Pros of Lease Purchase

• The lease owner is not responsible for maintenance and repairs
• It is an easy way to overcome the huge initial capital required for solar panel installation
• The cost of future electricity is not affected by rate increases

Cons of Lease Purchase

• You will not be eligible for incentives and rebates because the solar system does not belong to you
• The solar system will not add to the market value of the property since it is third-party ownership

Which Type of Solar Panel is Best for Home Use in New York?

The location of New York exposes it to much rainfall and cloudy weather conditions. The type of solar panel to use in New York may be those that give good performance under harsh weather conditions experienced in the state. However, other factors may influence your choice of solar panels. These include but are not limited to:

• Solar panel cost in New York
• The efficiency of the solar panel
• Longevity of the solar panel
• Warranty offered by the solar panel installation company

To make the best choice, you evaluate the pros and cons of the different types of solar panels available in the market to determine which meets your needs based on your budget.

There are three types of commercially available solar panels in the New York market, these are:

• Monocrystalline solar panels
• Polycrystalline solar panels
• Thin-film solar panels

The table below outlines the advantages and disadvantages to help you choose the type of solar that best meets your needs.

Can you Run a House Solely on Solar Panels in New York?

Yes, you can run a house solely on solar panels in New York. To power a home exclusively on solar panels, combine them with battery storage to store energy. Before you decide to run your house entirely on solar panels, you need to consider the following:

• Your monthly and annual energy consumption to enable you to calculate the number of solar panels you need
• The cost of solar panels in New York
• The size of battery storage you need to store energy and how much they cost
• The climate condition of your location and the average daily, monthly, and yearly sunlight hours to evaluate the capability of the solar system you want to install

The size and cost of solar panels to run your home in New York may be high, but you can leverage federal, state, and local tax credits, rebates, and incentives to reduce costs.

How Big of a Solar System do I need to go Off-Grid in New York?

The size of the solar system you need to go off-grid depends on your energy consumption. The average New York home consumes 12,500 kWh (34.25 kWh per day) of electricity as of 2023 and occupies 2,500 square-foot space. To calculate the size of the solar system you need to:

Step I

Calculate your yearly energy consumption

Step 2

Divide the daily energy consumption by the average peak sun hour per day (3.83 for New York) to get the solar power required.

Step 3

Divide the required solar power by the panels' wattage and Use the formula:

Number of solar panels = annual energy consumption / (peak-sun-hour per day x solar panel wattage)

For instance, if you are using 400-watt solar panels, then:

Required solar power = 34,250 / (3.83) = 8,942.56

Number of solar panels = 8,942.56 / 400 = 22 panels

However, due to solar panel losses (about 23%), we make adjustments for this by multiplying the required solar power by 1.4 and dividing it by the panel wattage. Hence, you may need 31 solar panels (22 x 1.4)

With 200-watt solar panels, you will require 63 panels.

In addition to the number of solar panels that will meet your needs, you must also consider the space available for solar system installation. The table below lists some system sizes using 200-watt panels, the estimated number of solar panels in each, the required space for their installation, and the cost per each system.

Are Tesla Solar Panels Available in New York?

Yes, Tesla solar panels are available in New York. Tesla solar panels in New York rank among the best brands. Tesla solar roofs in New York are among the top rooftop solar panels and can be installed with Tesla Powerwall batteries to deploy electricity whenever needed. The Powerwall batteries compare favorably against other brands both in storage and performance. In New York, Tesla solar roof solar panels are available through authorized contractors.

How Many Solar Panels Do I Need in New York?

The number of solar panels you need to power your home in New York boils down to your energy needs. In addition, factors like solar panels' wattage and production ratio also play major roles in determining how many panels you will need. To calculate the number of solar panels you need, divide the system size (electricity consumption) by the product of the production ratio and the panel wattage.

The number of panels = electricity consumption / (product ratio x power output of the solar panels)

Annual electricity consumption - This is the amount of electricity that sufficiently meets your yearly power needs. The average American homes consume about 890 kWh of electricity monthly, or 10,680 kWh annually. For more accurate numbers on your power consumption, contact your utility provider for information.

Production ratio - This is the actual energy output of the solar panel system (in kWh) over time compared to the estimated output (in W) over the same period. For instance, a 5 kW panel that produces 7 kWh of electricity yearly has a production ratio of 1.4 (7 / 5). Solar panel systems reduction ratios are never 1;1. In the U.S., production ratios are between 1.3 and 1.6.

Solar panel wattage - This is the power rating or energy output (in watts) of the solar panel under ideal conditions. Typically, New York solar panels' wattages range from 300 watts to above 400 watts. For clarity, we will use 400 watts as our solar panel wattage for subsequent calculations.

How to calculate the number of solar panels you need

Using the information above ( i.e. 10,680 kWh, 1.3 (or 1.6), and 400 watts as the yearly energy consumption, production ratio, and panel wattage), the following calculation estimates the number of solar panels you need to run an average home.

Number of solar panels = 10,680 kWh / ((1.6 or 1.3) x 400) = 17 or 21 panels.

However, New York experiences cloudy weather conditions due to cloudy weather conditions, and this averages the production ratio to about 1.2. Using 1.2 as the production ratio, the number of panels you will require to power a 3-bedroom house using 400-watt panels is:

Number of solar panels = 10,680 kW / (1.2 X 400) = 22 panels

Alternatively, you can calculate the number of solar panels you need by dividing your annual electricity consumption by the product of the sunlight hours in your location and the panel wattage. For instance, if you live in Syracuse (New York) with 2120 hours of annual sunlight, using 400-watt solar panels, the number of panels is calculated as follows.

The number of solar panels = 10,680 / (2120 x 400) = 13 panels

Note: if you use panels of high wattage and production ratio, the number of solar panels reduces and vice versa.