Palmetto

Buffalo, NY

Solar Guide
Nathan Healy
Certified by Nathan Healy
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Buffalo

Buffalo homeowners are exploring solar despite the city’s winter climate. With New York ranking 4th nationally for residential solar installations, the opportunity is clear.

This guide covers solar panels for your home in Buffalo, from local incentives to performance expectations.

NEW YORK by the Numbers

4th Most residential solar in the United States
204k Households have installed solar panels
~$8k New York average solar rebate savings
~$91k Buffalo average savings over 25 years
02

Key Takeaways

  • Buffalo receives excellent solar irradiance that generates 14,600 kWh annually from a typical 10 kW system.
  • New York offers generous solar incentives including 30% federal tax credit and state rebates averaging $7,634.
  • Buffalo homeowners save approximately $91,000 over 25 years with solar panel installations despite winter weather.
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Palmetto Reviews

04

Solar Cost Calculator

Our Buffalo solar cost calculator uses real installation data from neighborhoods like Amherst, Cheektowaga, and Tonawanda. Get accurate pricing estimates based on actual local projects, not generic estimates.

Select Your Home Size

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft

Estimated Investment and Savings

System Size
Recommended System
8.50 kW
Typical for your home size in NY
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in New York.
Cost Breakdown
System Cost
$25448
Federal Tax Credit (30%)
$-7634
Final Cost
$17814
Savings
Monthly Savings
Average utility bill reduction
$208
Payback Period
Break-even point
6.5 years
25-Year Savings
Total financial benefit
$90998
05

Buffalo Electricity Prices

Buffalo residents face some of the highest electricity rates in the nation, with costs continuing to climb each year.

New York’s electricity rates jumped from 19.5 cents per kWh in 2021 to 24.4 cents in 2024, significantly outpacing the national average of 16.5 cents.

Solar panels generate electricity from sunlight, helping homeowners reduce their dependence on the grid and offset these rising utility costs with clean energy production.

Over 25 years, solar systems can provide predictable energy costs while utility rates continue rising, offering Buffalo homeowners long-term protection against electricity price increases.

Price of Energy: New York vs National Average

30¢
20¢
10¢
13.7¢
19.5¢
15.0¢
22.1¢
16.0¢
22.2¢
16.5¢
24.4¢
2021
2022
2023
2024
US Average
New York

Buffalo Area Utility Providers

Buffalo residents pay electricity rates through 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 22.2¢ average but near the 16.0¢ national average, reflecting the region’s energy infrastructure and regulatory environment.

With electricity costs remaining steady, solar panels offer Buffalo homeowners predictable energy expenses and protection against future utility rate increases over time.

Buffalo Utilities Electricity Rates

NYSEG
15.50¢
-3%
National Grid
17.00¢
+6%
NY Average
22.20¢
+39%
US Average
16.0¢
06

New York Solar Incentives

Buffalo solar installation costs become more affordable through federal and state solar incentives in New York.

New York offers multiple programs including tax credits, exemptions, and rebates. These Buffalo solar incentives can reduce your upfront investment significantly.

Research current programs thoroughly as incentive amounts and availability change frequently in Buffalo’s solar market.

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 the cost of going solar. This credit allows you to claim 25% of your qualified solar energy system equipment costs, up to a maximum credit of $5,000. The solar system must use solar radiation to produce energy for heating, cooling, hot water, or electricity for your home.

To qualify for this credit, you must purchase solar equipment, lease solar equipment through a written agreement, or enter into a 10-year power purchase agreement for solar energy. The system must be installed at your primary residence in New York State. While this credit is not refundable (meaning you won’t get cash back if the credit exceeds your tax liability), any unused credit amount can be carried forward for up to five years, giving you flexibility in how you use this benefit. You’ll need to file Form IT-255 to claim this credit on your 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 difference between your home’s value with and without the solar system.

To qualify, your solar system must be constructed between January 1, 1991 and January 1, 2030, or have existed before July 1, 1988. The system must include equipment like solar panels, inverters, batteries, and other components necessary for collecting and converting solar energy. However, this benefit isn’t automatic – each local government (county, city, town, village, and school district) can choose whether to offer this exemption, so you’ll need to check if your area participates. Some local governments may also require you to enter into a payment agreement instead of receiving the full exemption, so it’s important to understand your local rules before installing your system.

New York’s Sales Tax Exemption for residential solar energy systems removes state sales tax from solar equipment purchases and installations. This exemption eliminates the standard 4% New York State sales tax, plus an additional 3/8% tax in the Metropolitan Commuter Transportation District (which includes New York City and surrounding counties). The exemption has been in effect since 2005 and applies to all residential solar energy system equipment and installation services.

The financial benefit varies by location since local jurisdictions can choose whether to offer the exemption. Many counties and cities provide full exemption from both state and local sales taxes (showing 0% tax rates), while others still charge local sales tax rates ranging from 1.5% to 4.5%. For example, homeowners in Albany County, Erie County, Nassau County, Suffolk County, and New York City pay no sales tax on solar installations, while those in areas like Monroe County or Onondaga County still pay 4% local sales tax. On a typical $20,000 solar installation, this exemption could save homeowners between $800 to $1,750 depending on their location.

The exemption applies specifically to residential solar energy systems equipment and installation services, with no income limits or system size restrictions mentioned. There are no stated deadlines or expiration dates for this tax exemption. Homeowners should verify their local jurisdiction’s participation in the program, as tax rates can change and some cities within exempt counties may still impose local taxes. The state publishes updated rate tables showing which areas provide the full exemption versus those that still charge local sales tax.

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 megawatt (MW) blocks with specific incentive amounts that decrease over time as solar becomes more cost-effective. The exact incentive amount varies by region and is updated in real-time through online dashboards, but generally provides substantial savings on your solar installation costs. The program is designed to phase out incentives gradually as the solar market becomes self-sustaining, so earlier participants typically receive higher incentive amounts.

Eligibility includes residential homes, businesses, and multifamily properties, with specific requirements varying by project type and location. There are no fixed deadlines, but incentives are available on a first-come, first-served basis until each MW block is fully subscribed. Homeowners should act promptly since incentive levels decrease as blocks fill up, and you’ll need to work with a participating contractor to access these benefits.

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 can then be used to offset your electricity bill during times when your solar panels aren’t producing enough power, like at night or during 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 solar 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. The utility will not issue cash payments for excess credits – they can only be used to offset future electric bills.

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 Quote
07

Buffalo 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.

Buffalo’s snowy winters and shorter daylight hours impact solar production, but modern panels efficiently capture available sunlight year-round, making solar surprisingly viable here.

Solar Production in Buffalo by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

54 kWh/day

In July, your 10 kW system could power:

  • 3.6 average homes (15 kWh/day per home)
  • or Run central AC for 18 hours AND power all other appliances
  • or Fully charge 5.4 Tesla Model 3 electric vehicles

Winter Production (December)

30 kWh/day

In December, your 10 kW system could power:

  • 2 average homes (15 kWh/day per home)
  • or Keep your home heating system running for 15 hours
  • or Fully charge 3 Tesla Model 3 electric vehicles

Annual Production

14,600 kWh/year

Over a year, your 10 kW system could:

  • Offset 10 tons of carbon dioxide emissions
  • or Equal the environmental benefit of planting 175 trees
  • or Save approximately $4,234 in electricity costs

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 Estimate
08

Solar Installations in Buffalo

We’ve mapped every solar installation across America to bring you this interactive view of Buffalo’s solar community. Click any hexagon to discover how many neighbors in that area have made the switch to clean energy!

09

Leasing Solar Panels

Buffalo homeowners can access solar panels through Palmetto’s leasing program, available through National Grid. With a solar lease, you pay a fixed monthly amount (like $150) rather than purchasing the system outright.

This option eliminates the need for large upfront investments, ongoing maintenance responsibilities, or equipment repairs. Your monthly lease payment stays predictable while you immediately start saving on electricity costs without managing system ownership complexities.

Explore Palmetto’s LightReach program to discover how leasing makes clean energy accessible with no down payment, no maintenance worries, and immediate savings from day one.

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 More
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Frequently Asked Questions

Yes, solar makes financial sense in Buffalo despite the city’s winter climate. Buffalo receives excellent solar irradiance that generates 14,600 kWh annually from a typical 10 kW system.

With New York’s generous incentives including 30% federal tax credit and state rebates averaging $7,634, Buffalo homeowners save approximately $91,000 over 25 years with solar installations.

Yes, Buffalo has net metering through National Grid, which serves most of the Buffalo area. Buffalo residents receive 1:1 credit for excess solar energy sent to the grid.

National Grid charges a monthly Contribution Benefits Charge (CBC) of $1.45 per kW of your system capacity. Credits roll over indefinitely for 20 years, providing long-term value for Buffalo solar customers.

Yes, solar panels typically increase home value in Buffalo. A Zillow study found solar panels increase home value by 4.1% on average across the United States.

For Buffalo homeowners, this means a $200,000 home could see an $8,200 value increase with solar installation. New York’s property tax exemption also protects you from paying higher taxes on this added value for 15 years.

Solar installation costs in Buffalo range from $14,589 to $23,466 after federal tax credits, depending on your home size and energy needs.

A typical medium-sized home (2,000-3,000 sq ft) requires an 8.5 kW system costing approximately $17,814 after the 30% federal tax credit and New York state incentives.

Yes, solar is financially worth it in Buffalo. With New York’s high electricity rates at 24.4¢/kWh and generous incentives, Buffalo homeowners typically save $91,000 over 25 years.

Solar systems pay for themselves in about 6.5 years through monthly electricity savings, then provide decades of free power while protecting against rising utility costs.

We are Palmetto Solar, a national company with a local focus serving Buffalo through our established installer network. As a mission-driven company, we’ve helped over 20,000 customers nationwide access clean energy with surprisingly affordable financing options.

We offer comprehensive solar solutions including system design, installation, financing, and ongoing support. Our LightReach leasing program makes solar accessible with no down payment, while our purchase options maximize long-term savings for Buffalo homeowners.