Can Solar Panels Power My Whole House in NYC?

Every month, the residents of New York are waking up to the highest electricity rents. Majorly stemming from fuel shortages and high natural gas prices, the city is experiencing a dramatic cost increase in retail electricity prices. About 40% of the electricity in the US is produced by burning natural gas, the cost of which spiked incessantly.

Hence, it has raised significant confusion among the customers.

Mark Wolfe, the executive director of the National Energy Assistance Directors' Association said, "Consumers look at gasoline, and say, well, gasoline's come down, why am I still paying more money for heat and power?"

New Yorkers typically pay 35% to 40% more for electricity than the rest of the country, per data from the US Energy Information Administration. The residents pay about $210 per month for electricity, which adds up to $2,520 per year. This is 25% higher than the average normal national electric bill of $2,023.

Consolidated Edison, in a joint proposal filed by utility and state regulators, warned about an 11%-12% rise in bills for electricity consumers over the next three years, and 20% for gas consumers.

This is why solar panel installation in NYC is the most viable option at present. When electricity is so expensive, investing in renewable energy can help cut energy costs. Besides, the incentives brought about by the Biden Administration make it a win-win for all.

Is New York Solar Friendly?

There is a rising question among the New Yorkers — can solar panels power my whole house?

The major advantage to going solar in this state is substantial electricity savings over the years to come. 

Yeah, it does come with a huge price tag, but when you compare it closely with the price of electricity/kwh, solar is a cheaper alternative. 

New York also leads the way in sustainability and solar power for houses.

Per SEIA data, it holds a current national ranking of ninth in total installed solar capacity, with a $9.8 billion investment through Q1 2023. Moreover, with generous net metering, 25% tax credits, and exemption, NYC is also named the top state for solar incentives by CNET.

Transitioning to Solar Power For House

When it comes to the solar energy transition, homeowners have two commonly asked questions —

Can solar panels power a whole house, and how much do they cost?

There is no one-size-fits-all product, so nailing the cost becomes tricky.

However, per opinion and market studies, the average cost of Solar panels in NYC is ∼$ 3.15/W. A 5-kilowatt panel installation can cost somewhere between $$13,388 and $18,112 while a 7kW solar panel installation might cost around $22,050.

But this pricing is heavily dependent on factors, like the type of solar energy system, the location and size of the house, the roof slant, angle, and position, the climate and sun availability, etc.Therefore, we can conclude that over a span of 20 years, residents in New York can expect to save $27,878 after installing an average-sized solar panel system.

How many panels do I need to power my house?

For this, you will need key information on-

• Total home electricity usage
• The wattage of the solar panels
• Production ratio of the solar system

Depending on this put the action formula in place -

NUMBER OF SOLAR PANELS TO POWER A HOUSE = SYSTEM SIZE / PRODUCTION RATIO / PANEL WATTAGE

On average, your house will need 20 to 25 solar panels to completely power your home in NYC.

The Solar Incentives Are An Attraction

Residents can avail of NYC solar incentives to reduce the cost of solar power for houses.

Net Metering

US residents can generate electricity from solar and earn extra credit to offset the consumed grid energy on days when the panels do not produce anything (like rainy days). Suppose, your 7.5 kW solar panel system produces 32 kWh of electricity but you only use 25 kwh. The extra power will go back to the local grid, and as the electricity gets flowing, you earn credit.

Federal Solar Tax Credit (ITC)

Avail the 30% tax credit eligible through 2022 till 2032. It covers an array of segments like the expense of solar panels, labor for installation, the cost of permits and inspections, the cost of storage like batteries, etc.

NY Sun Megawatt Block Program

A program by the New York State Energy Research and Development Authority (NYSERDA), it offers financing options and incentives upon going solar. This varies depending on the solar system size and your home location. If you fall in the Con Edison region, you can avail of an incentive rate of $0.20 per watt of solar installed, while those in the upstate can get $0.30 per watt of solar installed.

NY State Solar Equipment Tax Credit

Your state tax payments are reduced to $5000, which is 25% of the total solar expense. It is non-refundable, but the amount credited in excess of the tax can be withheld for up to five years.

Solar Sales Tax Exemption

You are exempted from paying the state sales tax, which lowers upfront costs for solar installation.

Inflation Reduction Act

Several tax rebates and credits can be claimed by homeowners in New York under the IRA. Read here to know more about the same.

Other Factors In Play Are-

Sunlight

If your house has exposure to direct sunlight, it is a win-win. To check, go to Google's Project Sunroof, put your address, and see how much usable sunlight your house gets every year.

Roof Condition

The roof shingles should be in a properly maintained condition, to bear the weight of the panels and the angle should be between 15-40 degrees. This is necessary to install solar panels to power a house.

Size of your home

This largely impacts the choice of solar panels. The standard dimensions of solar panels are approximately 65 inches by 39 inches, which is roughly 17.5 square feet. Every square foot of space can potentially help generate 15 watts of energy.

Proper installation

Because of several other regulations, it is crucial that you work with installers who ensure quality, and good project turnover knowing the potential hindrances. Our team at Solarblocks aims to help every household maximize solar energy production and reduce their energy bills in a bid to make it cost-efficient across large NYC communities.

Does Solar Increase Home Value in NY State?

While it is true that solar panels can power a whole house, they also increase its financial value. Per the National Renewable Energy Laboratory (NREL), your home value increases by $20 for every $ saved on electric bills. For example, if you save $600 per year through solar panel installation in NYC, your home value will multiply by $12,000. A 2021 Zillow Housing Trends report stated that ∼67% of homeowners consider “home energy efficiency to be “very to extremely important”. Also, solar panel-installed homes sell for 5.4% more than normal ones, and this boost in resell value is higher in NYC than in any other metro.

But a question remains - If solar panels allow me to save considerably on electricity bills, and increase my home value, will my savings be weakened by high property taxes?

The answer is no.

The New York State Solar program — The Property Tax Abatement instantly reduces the property tax burden for solar owners by up to 20%. Established in 2007 as Mayor Bloomberg’s PlaNYC initiative, it allows for a maximum abatement of $62,500 per year on your property tax liability.

This means you are still paying the property taxes, but the value of the new solar system will not increase the tax rates. This is unless the Government opts out.

However, as the majority of New Yorkers are Con Edison customers, the NY Sun Megawatt program is apt for them, which lowers upfront costs for solar installation. 


^{**This is a tax abatement and not an exemption. It lowers the amount of property tax you owe through credit, which is dependent on the total cost of solar panel installation.}

^{**Note - Claiming the New York PTA does not mean that you cannot avail of the other incentives offered for residents.}

Is Going Solar in NYC Worth It?

The time is now.

Between the towering grid energy prices and the NYC solar incentives, solar panels to power a house are no longer the future. They are today’s reality.

The process of installation is not complicated at all. At Solarblocks, our dedicated team of experts will help you transform your home into solar. Guaranteeing one-to-one customer interaction, we will help you choose the right kind of solar panels that fit your requirements.  You can opt for a virtual meeting with our energy advisors to get all your questions sorted.

We also help you qualify for all the solar incentives. So join us today in this revolution.

Choose solar power for house and save on your energy and utility bills.