Long Island Solar Panels. Cost, PSEG Incentives & Savings
Long Island homeowners pay some of the highest electricity rates in the country. After the 2026 PSEG increase, PSEG Long Island averages 24–27¢/kWh. That makes solar one of the most financially compelling decisions you can make.
Long Island system cost by size
Before incentives. Actual cost depends on roof type, shading, and PSEG territory.
| System Size | Avg Home Size | Gross Cost | After NY 25% Credit | Est. Annual Savings |
|---|---|---|---|---|
| 6 kW | Small home, 1,200–1,800 sq ft | $16,600–$20,900 | $11,600–$15,900 | ~$1,800 |
| 8 kW | Average home, 1,800–2,400 sq ft | $22,200–$27,900 | $17,200–$22,900 | ~$2,400 |
| 10 kW | Larger home, 2,400–3,200 sq ft | $27,700–$34,900 | $22,700–$29,900 | ~$3,000 |
| 12 kW | Large home, 3,200+ sq ft | $33,200–$41,900 | $28,200–$36,900 | ~$3,600 |
NY state credit capped at $5,000. Federal residential tax credit (Section 25D) expired December 31, 2025. Prices are estimates for Long Island installations as of 2026. Consult a tax professional for accurate figures.
Long Island solar incentives in 2026
No federal credit, but New York still has one of the strongest state incentive stacks in the country.
⚠️ Note: The federal residential solar tax credit (Section 25D) expired December 31, 2025. New York homeowners still have strong state and local incentives available.
NY State Income Tax Credit
25% (up to $5,000)ActiveNY homeowners claim 25% of system cost directly against state income taxes, up to $5,000. One of the most valuable remaining incentives after the federal credit expired.
NYSERDA NY-Sun (Affordable Solar)
~$0.40/wattActiveOn Long Island the standard residential NY-Sun incentive blocks are largely closed. The income-qualified Affordable Solar adder of roughly $0.40/watt remains for eligible households. SolarPro Lab confirms whether you qualify and tracks current availability for you.
Sales & Property Tax Exemptions
100% exemptActiveNY exempts solar from sales tax and prevents added home value from solar from increasing your property tax assessment.
Net Metering (PSEG Long Island)
Retail rate creditActivePSEG credits excess solar generation at the full retail rate. Long Island's high electricity rates make net metering especially valuable here.
What makes Long Island solar unique
Dense suburban rooftops
Most Long Island homes have ideal south-facing roof space and minimal shading. The suburban layout makes installation straightforward.
PSEG Long Island territory
PSEG has its own net metering rules and NY-Sun incentive blocks. We track current PSEG block availability so the installer you pick handles utility interconnection without surprises.
Coastal considerations
Salt air and coastal exposure require specific panel coatings and mounting hardware. We make sure the installer you choose has spec'd your system correctly for the coast.
Long Island has some of the best solar economics in the Northeast. We make sure you capture every dollar.
High PSEG rates, strong net metering, and NY state incentives create exceptional ROI for Long Island homeowners. SolarPro Lab reviews every proposal line by line so you know exactly what you are getting.
Sources
- PSEG Long Island, "Electric Rate Information" (current residential rates and tariffs), and net metering and the VDER value stack for residential solar. psegliny.com
- U.S. Energy Information Administration, "Electric Power Monthly," average residential electricity price by state (New York among the highest in the nation). eia.gov
- NYSERDA, NY-Sun program and Long Island dashboard (per-watt residential incentive; New York State 25% solar tax credit). nyserda.ny.gov
- Internal Revenue Service, "Clean Electricity Investment Credit" (Section 48E), the 30% commercial credit passed through via a prepaid lease. irs.gov