Palmetto

Rochester, 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 Rochester

Rochester homeowners are exploring solar as New York electricity prices have surged 33% since 2020. With the state ranking 4th nationally for residential installations, families are embracing clean energy solutions.

Understanding your options helps you make informed decisions about home solar panels in Rochester’s energy market.

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 Rochester average savings over 25 years
02

Key Takeaways

  • Rochester homeowners save $7,634 on average through federal tax credits and New York solar incentives.
  • Solar panels work efficiently year-round in Rochester despite snowy winters and cloudy weather conditions.
  • New York electricity rates have jumped 33% since 2020 making solar a smart long-term investment.
03

Palmetto Reviews

04

Solar Cost Calculator

Our Rochester solar cost calculator uses real installation data from homes across Webster, Penfield, Brighton, and Greece. 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
$91096
05

Rochester Electricity Prices

Rochester, NY residents face rising electricity costs that have jumped significantly above national averages in recent years.

New York electricity rates climbed from 19.5 cents per kWh in 2021 to 24.4 cents in 2024, nearly 50% higher than the national average.

Solar panels generate electricity from sunlight, helping Rochester homeowners reduce dependence on the traditional grid and rising utility rates over time.

With solar systems typically lasting 25+ years, Rochester families can lock in predictable energy costs while traditional electricity rates continue climbing annually.

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

Rochester Area Utility Providers

Rochester residents served by NYSEG and RG&E pay competitive electricity rates compared to national averages, with 2023 data showing costs of 15.5¢ and 16.1¢ per kWh respectively.

These rates remain significantly below New York’s state average of 22.2¢ per kWh, though both utilities charge near the national average of 16.0¢ per kWh in 2023.

With electricity costs continuing to rise statewide, Rochester homeowners increasingly view solar as a way to stabilize their energy expenses and reduce dependence on utility rate increases.

Rochester Utilities Electricity Rates

NYSEG
15.50¢
-3%
RG&E
16.10¢
+1%
NY Average
22.20¢
+39%
US Average
16.0¢
06

New York Solar Incentives

Rochester homeowners can significantly reduce solar installation costs through multiple solar incentives in New York available at federal and state levels.

New York offers substantial tax credits, exemptions, and rebate programs specifically designed to make solar panel installation more affordable for Rochester residents seeking clean energy solutions.

These incentives can save thousands on your solar investment, but availability and rates change frequently requiring careful research.

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 save money when they invest in solar energy systems. This credit allows you to reduce your New York state income taxes by 25% of what you spend on qualifying solar equipment, up to a maximum credit of $5,000. You can claim this credit whether you purchase solar panels outright, lease them, or enter into a long-term power purchase agreement (at least 10 years) for solar energy generated by equipment you don’t own.

To qualify for this credit, the solar system must be installed at your primary residence in New York State and must be designed to produce energy for heating, cooling, hot water, or electricity for your home. 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, if you can’t use the full credit in one year, you can carry the unused portion forward for up to five years, giving you flexibility to maximize the benefit over time.

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 portion of your property tax assessment that’s directly attributable to your solar installation.

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 solar collectors, energy storage devices, and other equipment necessary for collecting and converting solar energy. However, this benefit isn’t automatic – each local taxing jurisdiction (county, city, town, village, and school district) can choose whether to offer this exemption through local laws or resolutions. You’ll need to check with your local tax authorities to confirm availability in your area.

Important considerations include that you’re still responsible for special assessments and ad valorem levies, and some jurisdictions may require you to enter into a payment-in-lieu-of-taxes (PILOT) agreement. If you’re planning a solar installation, you must notify local tax jurisdictions in writing when you sign your solar contract, referencing this specific tax law section. The exemption begins when your system becomes operational and continues for the full 15-year period, providing significant long-term property tax savings.

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 significantly depending on your location within New York. All residential solar installations are exempt from the 4% state sales tax, but local sales tax exemptions depend on whether your county or city has chosen to participate in the program. Many areas offer complete tax exemption (0% total tax), including major population centers like New York City, Albany County, Nassau County, Suffolk County, and Erie County. However, some jurisdictions still charge local sales tax rates ranging from 1.5% to 4.5%. For example, a $20,000 solar system in an area with full exemption could save you $800-900 in taxes, while areas with partial exemption might save $400-500.

This exemption applies to residential solar energy systems equipment and installation services, with no income requirements or application process needed. The tax exemption is automatically applied at the point of sale when you purchase qualifying solar equipment. There are no stated expiration dates for this program, making it a reliable long-term incentive. Homeowners should verify their specific local tax rate with their solar installer, as rates can change and some cities within exempt counties may have different rules than their surrounding county.

The NY-Sun Program is New York State’s comprehensive solar incentive initiative that provides direct financial rebates to homeowners who install solar panel systems. Administered by NYSERDA (New York State Energy Research and Development Authority), this program offers upfront cash incentives that reduce the initial cost of going solar, making clean energy more affordable for New York families.

The program operates through a regional block structure across three main areas: Con Edison territory (NYC and Westchester), Long Island, and Upstate New York. Each region has allocated megawatts (MW) of solar capacity eligible for incentives, and rebate amounts decrease as each block fills up – meaning earlier participants receive higher incentives. The specific dollar amounts vary by region and are updated in real-time through online dashboards, so homeowners should check current rates when considering solar installation.

All residential solar installations in New York are eligible for NY-Sun incentives, regardless of income level or home type. However, the program is designed to phase out incentives over time as the solar market becomes more self-sustaining, so availability depends on remaining capacity in each regional block. Homeowners should work with NY-Sun participating contractors to ensure their projects qualify and to access the most current incentive levels for their specific location.

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 future electricity bills 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 valuable program. You’ll pay a monthly Contribution Benefits Charge (CBC) that ranges from $0.85 to $1.45 per kW of your solar system’s capacity, depending on your utility provider. For example, PSEG Long Island charges the lowest fee at $0.85/kW-DC per month, while National Grid charges $1.45/kW-DC monthly. Your net metering credits roll over month to month and year to year for up to 20 years, giving you long-term value from your solar investment. However, you won’t receive 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

Rochester 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.

Rochester’s snowy winters and cloudy days might seem challenging for solar, but modern panels work efficiently year-round, making solar surprisingly effective here.

Solar Production in Rochester 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 Rochester

We’ve mapped every solar installation across America to show you something exciting: your Rochester neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.

09

Leasing Solar Panels

Rochester homeowners can choose from Palmetto’s solar leasing options through Rochester Gas & Electric (RGE). This flexible financing eliminates upfront costs while delivering immediate energy savings from day one.

With a solar lease, you pay a fixed monthly amount instead of managing maintenance, repairs, or system monitoring yourself. This approach provides predictable energy costs while Palmetto handles all equipment responsibilities throughout the lease term.

Learn more about solar leasing versus purchasing or explore LightReach options available in your area to find the best solar solution for your Rochester home.

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
10

Frequently Asked Questions

Yes, solar makes excellent sense in Rochester despite the region’s snowy winters and cloudy weather. Modern solar panels work efficiently year-round, and Rochester homeowners save an average of $7,634 through federal and state incentives.

With New York electricity rates jumping 33% since 2020 to 24.4¢/kWh, solar provides long-term protection against rising utility costs. Rochester’s solar installations typically pay for themselves in 6.5 years while delivering $91,000+ in savings over 25 years.

Yes, Rochester, NY has net metering through Rochester Gas & Electric (RGE). This 1:1 net metering program credits you full retail value for excess solar energy sent to the grid.

RGE charges a monthly Contribution Benefits Charge of $1.16 per kW of your system capacity. Net excess credits roll over month-to-month and year-to-year for 20 years, though no cash payments are issued for unused credits.

Yes, solar panels increase home value in Rochester, NY. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.

For Rochester’s median home value, this translates to thousands in additional equity. Plus, New York’s 15-year property tax exemption means you won’t pay higher property taxes on the added value from your solar installation.

Solar costs in Rochester range from $14,589 to $23,466 after federal tax credits, depending on home size and energy needs. The average 8.5 kW system costs $17,814 after incentives.

Rochester homeowners save approximately $7,634 through federal tax credits and New York solar programs. With electricity rates at 24.4¢/kWh, most systems pay for themselves in 6.5 years while delivering $91,000+ in lifetime savings.

Yes, solar is financially worth it for Rochester homeowners. With New York electricity rates at 24.4¢/kWh and rising 33% since 2020, solar provides protection against future rate increases.

Rochester solar installations typically pay for themselves in 6.5 years through monthly savings, then deliver $91,000+ in benefits over 25 years. Federal and state incentives reduce upfront costs by an average of $7,634.

We are Palmetto Solar, a national company with a local focus serving Rochester homeowners since 2011. Our extensive install network ensures quality solar installations backed by some of the best financing options in the industry.

We’ve served over 20,000 customers across 31 states with an 85%+ approval rating. Our mission-driven approach makes clean energy accessible and affordable for Rochester families through transparent pricing and long-term customer relationships.