Albany, NY
Solar in Albany
Albany solar installation is gaining momentum as New York electricity rates hit 24.37 cents per kWh—47% higher than the national average of 16.6 cents.
Understanding your home solar panel options helps Albany residents reduce high utility costs and switch to clean energy.
Key Takeaways
- Albany residents pay 24.4¢ per kWh which is 47% higher than the national average, making solar savings substantial.
- New York offers generous solar incentives including 30% federal credit plus state equipment credit up to $5,000.
- Solar systems in Albany save an average of $93,264 over 25 years with predictable energy costs.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Albany neighborhoods like Delmar, Loudonville, and Colonie. Get accurate pricing based on actual local projects, not generic estimates.
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Estimated Investment and Savings
Albany Electricity Prices
Albany residents face rising electricity costs that significantly impact monthly budgets and long-term financial planning.
New York electricity rates jumped from 19.5 cents per kWh in 2021 to 24.4 cents in 2024—a 25% increase in just three years.
Solar panels help Albany homeowners generate their own electricity, reducing dependence on the grid and protection against future rate increases.
Over 25 years, solar systems can provide predictable energy costs while traditional electricity rates continue climbing, offering substantial long-term savings.
Price of Energy: New York vs National Average
Albany Area Utility Providers
Albany residents receive electricity from two main utilities: NYSEG at 15.5¢ per kWh and National Grid at 17.0¢ per kWh (2023 data).
Both utilities charge below New York’s 22.20¢ state average, benefiting from the region’s diverse energy mix and established infrastructure networks.
With electricity rates trending upward annually, solar panels offer Albany homeowners predictable energy costs and protection from future utility increases.
Albany Utilities Electricity Rates
New York Solar Incentives
Albany residents can significantly reduce solar installation costs through various federal and state solar incentives in New York.
New York offers multiple programs including equipment tax credits, property tax exemptions, sales tax savings, and the NY-Sun rebate program for Albany homeowners.
These incentives can save thousands on your solar investment, making clean energy more affordable for Albany families.
Save an average of
$7,634
in solar rebates in New York
INCENTIVE | TYPE | DESCRIPTION | SOURCE |
---|---|---|---|
Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
Solar Equipment Tax Credit | State tax credit | Homeowners receive 25% off their solar panel equipment costs (up to $5,000). | Learn More |
Property Tax Exemption | State tax exemption | Prevents property tax increases from solar for 15 years. Local governments can opt out. Based on Real Property Tax Law §487. | Learn More |
Sales Tax Exemption | State tax exemption | 4% of system cost savings. No state sales tax on equipment and installation. Many localities also waive local portion. Saves $800 on $20k system. | Learn More |
NY-Sun Program | State program | $0.15-0.20 per watt installed. (~$1,500 for average sized system). Rebate and availability varies by region. Higher rates for income-eligible households. Unfortunately some areas no longer qualify (Long Island). | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
The New York Solar Equipment Tax Credit is a state tax incentive that helps homeowners reduce their tax burden when they invest in solar energy systems. This credit allows you to claim 25% of your qualified solar energy system equipment costs, up to a maximum credit of $5,000. You can qualify for this credit whether you purchase solar equipment outright, lease it through a written agreement, or enter into a long-term power purchase agreement (at least 10 years) for solar energy generated by equipment you don’t own.
To be eligible, your solar energy system must be installed at your primary residence in New York State and use solar radiation to produce energy for heating, cooling, hot water, or electricity for residential use. The credit is non-refundable, meaning it can only reduce your tax liability to zero – you won’t receive a cash refund if the credit exceeds your taxes owed. However, any unused credit amount can be carried forward for up to five years, giving you flexibility to use the full benefit over time. You’ll need to file Form IT-255 to claim this credit on your New York State tax return.
New York’s Property Tax Exemption for solar energy systems allows homeowners to avoid paying property taxes on the increased value that solar panels add to their home. When you install a solar system, your home’s assessed value typically increases, but this exemption protects you from paying higher property taxes on that added value for 15 years. The exemption applies to the increase in assessed value only – you’ll still pay property taxes on your home’s original value.
To qualify, your solar system must be constructed between January 1, 1991 and January 1, 2030, with construction considered to begin when you sign a contract or interconnection agreement with your utility company. The exemption is subject to local option, meaning your county, city, town, village, or school district can choose whether to allow it – so you’ll need to check if your local government has opted in. While you’re exempt from regular property taxes on the solar value increase, you may still be responsible for special assessments and ad valorem levies. Some local governments may also require a payment in lieu of taxes (PILOT) agreement, though this cannot exceed what you would have paid in regular property taxes and is limited to the same 15-year period.
New York’s Sales Tax Exemption for residential solar energy systems helps homeowners save money by eliminating sales tax on solar equipment purchases and installation. This state-level incentive has been available since 2005 and removes the standard 4% New York State sales tax, plus the additional 3/8% tax that applies in the Metropolitan Commuter Transportation District (which includes New York City and surrounding counties).
The financial benefit varies by location since local jurisdictions can choose whether to participate. In areas that provide the full exemption, homeowners pay 0% sales tax on their solar system. However, in counties and cities that haven’t enacted the local exemption, homeowners still pay local sales tax rates ranging from 1.5% to 4.5%. For example, a $20,000 solar system in Nassau County (which provides full exemption) would save homeowners about $800-900 in taxes, while the same system in Allegany County would still incur $900 in local sales tax.
This exemption applies to residential solar energy systems equipment and installation, with no income requirements or application process needed. The tax savings are automatically applied at the point of purchase when buying from qualified solar installers. Homeowners should verify with their installer that their specific location qualifies for local tax exemption, as the participating jurisdictions can change over time.
The NY-Sun Program is New York State’s comprehensive solar incentive initiative that provides financial support to make solar installations more affordable for homeowners, businesses, and communities across the state. Administered by NYSERDA (New York State Energy Research and Development Authority) in partnership with local utilities, this program offers direct cash incentives to reduce the upfront cost of installing solar panels on your property.
The program uses a regional approach with three main areas: Con Edison territory, Long Island, and Upstate New York. Each region has allocated megawatts (MW) of solar capacity that qualify for incentives, organized into blocks that decrease in value over time. As each block fills up with solar installations, the incentive amount steps down, encouraging early adoption. The specific dollar amount of your incentive depends on your location, system size, and which block is currently available when you apply. Real-time incentive levels are tracked through online dashboards that show current rates and remaining capacity in each region.
The program is designed to phase out incentives gradually as the solar market becomes self-sustaining, so acting sooner rather than later ensures access to higher incentive levels. Homeowners should work with participating contractors who can help navigate the application process and ensure their system qualifies for available incentives. The program also includes special adders for community solar projects and installations that meet certain workforce or community benefit requirements.
Net metering in New York allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive a 1:1 credit – meaning you get full retail value for every kilowatt-hour you export. These credits then offset your electricity usage during times when your panels aren’t producing enough power, like at night or on cloudy days.
The financial benefit varies by utility company, but all major New York utilities offer this 1:1 credit system. However, there is a monthly fee called the Contribution Benefits Charge (CBC) that ranges from $0.85 to $1.45 per kilowatt of your solar system’s capacity. For example, if you have a 10 kW system with National Grid, you’d pay $14.50 per month in CBC fees. Any unused credits roll over month to month and year to year for up to 20 years, after which they expire. You won’t receive cash payments for excess credits – they can only be used to offset future electricity bills.
Net metering is available to residential solar customers across New York state through all major utilities including Con Edison, National Grid, NYSEG, RGE, Central Hudson, Orange & Rockland, and PSEG Long Island. The program helps maximize your solar investment by ensuring you receive full value for all the clean energy your system produces, making solar more financially attractive for New York homeowners.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with New York incentives.
Get a Free QuoteAlbany Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Albany’s snowy winters and moderate sunshine may seem challenging for solar, but proper system design maximizes year-round energy production effectively.
Solar Production in Albany by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.1 average homes (15 kWh/day per home)
- or Run central AC for 15 hours AND power all other appliances
- or Fully charge 4.6 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 1.2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 8 hours
- or Fully charge 1.8 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 9 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 148 trees
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Albany
We’ve mapped every solar installation across the United States to show you which Albany neighborhoods have embraced clean energy. Explore this interactive map to discover how many of your neighbors have already made the switch to solar power!
Leasing Solar Panels
Albany residents can choose from solar leasing options through select partners with National Grid. With a lease, you pay a fixed monthly amount (like $150) instead of purchasing the system outright, making solar accessible without large upfront costs.
Leasing offers immediate savings without the maintenance responsibilities of ownership. Your leasing company handles system monitoring, repairs, and warranty issues, while you enjoy lower electricity bills from day one. This approach works well for homeowners who want solar benefits without managing the investment.
Compared to cash purchases, leasing requires no upfront investment and includes comprehensive maintenance coverage. While you won’t own the system, you’ll still benefit from reduced utility bills and support clean energy adoption. Learn more about solar leasing versus buying or explore Palmetto’s LightReach program for Albany homeowners.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Albany. With electricity rates at 24.4¢ per kWh—47% higher than the national average—Albany residents face substantial utility costs that solar can significantly reduce.
New York offers generous incentives including 30% federal tax credit plus state equipment credit up to $5,000. Solar systems in Albany save an average of $93,264 over 25 years while providing predictable energy costs and environmental benefits.
Yes, Albany has net metering through both major utility providers. NYSEG and National Grid offer 1:1 net metering, crediting excess solar production at full retail value.
Monthly surplus credits roll over indefinitely for 20 years. Both utilities charge a small monthly solar fee (CBC) ranging from $1.16-$1.45 per kW of system capacity.
Yes, solar panels increase home value in Albany. Research from Zillow shows solar panels increase home value by 4.1% on average nationwide.
For Albany’s median home price of $180,000, this translates to approximately $7,380 in added value. Solar systems also help homes sell faster and attract environmentally conscious buyers in the Capital Region market.
Solar costs in Albany range from $14,589-$23,466 after federal tax credits. A typical 8.5 kW system costs $25,448 before incentives, then $17,814 after the 30% federal credit.
Additional New York incentives include state equipment credit up to $5,000, sales tax exemption saving ~$800, and property tax exemption for 15 years. Total savings average $7,634 in rebates.
Yes, solar is financially worth it in Albany. With electricity rates at 24.4¢ per kWh—47% above the national average—solar systems provide substantial savings and protection from rising utility costs.
Solar systems in Albany typically pay for themselves in 6.3 years and save an average of $93,264 over 25 years. Combined with generous New York incentives totaling ~$7,634, solar offers strong financial returns for Albany homeowners.
We are Palmetto Solar, a national company with deep local expertise in Albany. We’ve been bringing clean energy to homes since 2011, serving over 20,000 customers across 31 states with an 85%+ approval rating.
We offer some of the industry’s best financing options and work with a carefully vetted network of local installers. Our mission is making solar accessible and affordable for every Albany family through transparent pricing and exceptional service.