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If you live on Long Island, New York, now may be a good time to go solar.
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that’s changing.
Momentum installs in 11 states without using subcontractors. While using in-house installers doesn’t guarantee a better experience, it does suggest you’re likely to get a more uniform experience from them. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in their crews’ ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum’s is five years, which can be beat.
Local solar panel companies on Long Island
Cost of solar panels in Long Island
When considering whether to install solar panels, one place to start is with your electricity bills.
New York ranks in the top 10 states with the highest electricity rates. The average electricity rate in New York state was 23 cents per kWh in September 2023, leading to an average monthly bill of $145.40. With electricity bills being what they are, Mehta said there are increasing amounts of solar panels being installed every year.
“The technology is getting cheaper and getting proven out,” he said. “People are getting more comfortable with it and they see their neighbors have solar and that gives them comfort to go solar.”
Mehta noted it takes about seven to 10 years to pay off the installation costs, depending on what part of the state you live, the extent of your individual solar system and overall energy consumption.
Long Island solar costs
Here’s a snapshot of the average costs of a solar panel purchase and how much you can save with the 30% federal tax credit on Long Island using a 5 kilowatt-hour size system.
Up to a 30% tax credit that can be applied to federal taxes. The Inflation Reduction Act extended the 30% tax credit for residential systems installed between Dec. 31, 2021 and Jan. 1, 2033.
State tax credit
New York residents who install a solar system may be eligible for a state tax credit of 25% for some systems of up to $5,000.
State sales tax exemptions
New York state exempts sales taxes for the sale and installation of many solar-related services. However, the exemption does not include pool heating or other recreational uses.
Storage incentives
The Long Island Power Authority offers battery storage incentives for both new and existing homeowners. The incentive is available for the energy storage component of a system.
Net metering program
With net metering in Long Island, you can send your extra solar generation back to the grid in exchange for credits on your electric bill. According to DSIRE, as of February 2023, PSEG/LIPA, the main utility on Long Island, provides the retail rate for each kilowatt-hour of electricity you send to the grid.
Community solar program
Great for Long Island renters who can’t commit to a solar panel purchase, community solar programs allow you access clean energy by subscribing to a solar project. You then save on energy costs with electric bill discounts. You can learn more about how to subscribe to PSEG Long Island community solar options here.
How to determine which Long Island solar company is best for me
Mehta said residents who choose to go solar need to check references of installation companies. He added you need to talk with people who previously worked with that installer, do some internet research, read reviews and get a request for proposals from at least three separate installers.
“You need to take time and carefully review the proposal including the financing options because the proposal you get may include a loan component or a lease component,” Mehta noted.
Installation factors to keep in mind
However, Mehta emphasizes you must do extensive research on whether solar panel installation is appropriate for their home.
“It’s completely possible in your particular instance going solar may not make sense,” he said. He cites houses that have large amounts of shade or the roof faces south, thus it may not generate solar energy. “You definitely want to take your time before you make that decision.”
Some other issues to consider for potential customers may include:
Roof condition and pitch: The angle and pitch of the house’s roof will generate enough solar energy for the panel installation to be a worthwhile investment. “Typically, solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees, though other roofs may be suitable too,” according to the US Department of Energy. Homeowners should consult with a reputable solar panel installer to determine the feasibility of installation, leading with conversations regarding size, condition and age of the existing roof.
Renting vs. owning your home: If you’re renting a house and foresee purchasing a home in the not-too-distant future, the costs of installing solar panels may not be worth the investment. A viable alternative may be a community solar program.
Insurance coverage: Solar panels are susceptible to the weather and other outside forces. You should check your homeowner’s insurance policy if there would be coverage for the panels upon completion of installation.
Homeowners association regulations: New York is one of 21 states that does not have laws prohibiting HOAs from forbidding solar panel installation. You should check your HOA’s regulations to see if solar panels are allowed.
How to pay for solar panels in Long Island
Cash: Installing solar panels can be very expensive and many people may not have that much cash available. However, if you can afford one large payment, that eliminates additional interest or fees.
Solar loan: NYSERDA extends three types of loan options including an on-bill recovery loan, a smart energy loan and a renewable energy tax credit bridge loan. “It really depends on your personal situation,” Mehta said. “You want to be aware of all the options.”
HELOC or home equity loan: Another type of loan possibility is a home equity loan, or HELOC, that allows you to use the equity in your home as collateral. HELOCs can be used for upgrading a house, but your risk losing your home if you cannot repay the loan.
Lease or power purchase agreement: This is an arrangement between the solar panel installation company and the homeowner where the solar company maintains ownership of the system. With a solar lease you rent the panels from a solar company and receive a discounted bill in return. With power purchase agreements, you can earn a discounted rate per kilowatt hour. In both instances, since you do not own panels, you cannot access any tax incentives.
Personal loan: A personal loan through a reputable financial institution may be a solid option by getting the money up front to finance the solar panel installation and then paying back over time along similar lines to a car loan. Most personal loans are unsecured — meaning it does not require collateral, such as your home. This can eliminate the risk of losing your house if there are unforeseen financial problems. However, personal loans without collateral often have higher interest rates.
Solar power FAQs
What are the advantages of solar panels?
Seven to 10 years on Long Island, depending on any number of factors, including the extent of the installed system, the specific area on Long Island where you live and the overall energy consumption.
