Buying Solar Panels for Your Home: A Guide for New York Homeowners

Are you considering buying solar panels for your home? You’re not alone! As utility rates continue to rise, federal interest rates have come down, and time-sensitive solar incentives are available, more Central and Western New York homeowners are considering home electrification to power their lives at home and on the road.

As the region’s most trusted clean energy company for over 22 years and Top Solar Contractor in NYS, we’re breaking down everything you need to know about the buying journey, including:

✅ How much you can save with solar compared to utility rates
✅ How to buy solar panels for your home
✅ The best financing options (including how to cover half your costs!)

Let’s get started!

Why Buy Solar Panels for Your Home? (Cost vs. Utility Rates)

Solar ownership offers long-term savings and protects against utility rate hikes. Here’s a comparison of the cost of buying solar panels for your home against what you’d pay for the utility for GreenSpark Solar’s average-sized residential array.

Stable Solar Costs vs. Rising Utility Rates

Utility rates in the Central and Western New York regions continue to increase year over year. Recent proposals include:

RG&E customers have seen a 16% increase over three years
NYSEG customers have seen a 22% increase over three years
National Grid is proposing a 15% increase in 2025

When you switch to solar, you generate your own electricity, so you aren’t subject to these volatile, ever-changing rates.

Total Energy Costs Over 30 Years Compared

Many GreenSpark customers choose to finance their solar investment for 10, 15, or 20-year terms. Solar panels typically last 25-30 years, outlasting a loan payment and locking in stable energy costs for decades.

Homeowners who finance their solar energy systems typically see a 9%–18.5% annual return on their investment, with a payback period of 5 to 11 years and a total return of about $100,000—outperforming many traditional investments.

Financing Options for Buying Solar Panels for Your Home

1. Cash purchase (Best ROI 💰):

The most financially savvy way to buy solar panels for your home is through a cash purchase. Purchasing your panels outright not only allows you to take advantage of all of the Federal and State residential solar incentives but you’ll also:

See immediate energy savings without a monthly solar loan
Enjoy a return on your investment sooner through a shorter payback period
Add immediate value to your home (about 4.1%, on average)

2. Solar loans (Most popular option):

Solar financing is the most common way to buy solar panels for your home. Like financing a car, you’ll make fixed monthly payments over the loan term, usually 5–25 years. You have multiple options for solar financing, including two incredible solar-specific financing offers through GreenSpark and NYSERDA (New York Solar Energy Research and Development Authority).

GreenSpark Solar Financing

GreenSpark offers exclusive solar financing that offers competitive interest rates for a low fixed monthly loan payment and:

$0 down financing for up to 100% of your solar project
No payments for six months, which means immediate savings on your energy costs
Fixed payment for the life of your loan, which becomes more valuable over time as utility rates increase or we experience periods of inflation.
Lien is secured by the solar equipment, not by the equity in your home!
Easy, accessible credit qualification

NYSERDA Smart Energy Loan

In addition to GreenSpark’s financing, NYSERDA offers a Smart Energy Loan with incredibly attractive interest rates. With this loan option, you can:

Finance up to $25,000 of your project costs
Secure a competitive interest rate as low as 3.49 for eligible homes (check your interest rate here!)
Supplement other solar project funding sources if needed.

3. Home Equity or Personal Loan

Last but not least, you may use a personal or home equity loan (HELOC) to buy solar panels for your home. This option may be most appealing for homeowners who have accumulated a great deal of equity in their homes or can secure a stronger interest rate offer through a preferred financial institution.

How to Cover Half Your Solar Costs in New York

New York offers some of the best solar incentives to reduce upfront costs! Western and Central New York homeowners can take advantage of the Federal ITC, and New York also offers additional solar incentives and policies that help make going solar extremely cost-effective!

30% Federal Solar Tax Credit:

Get 30% back on your total solar cost as a tax credit, made possible through the Inflation Reduction Act.

NY-Sun Incentive (Upfront Cash Rebate):

Get a per-watt grant (free money) that reduces your solar project cost!. Check NYSERDA’s dashboard for the latest!

State Tax Credit (25%)

New York’s 25% state tax credit (up to $5,000) makes solar even more affordable.

+ Earn Credits with Net Metering:

For every kWh of extra energy your solar produces that your home doesn’t need, you get a kWh of credit from the utility to offset future bills.

When combined, these incentives can cover up to 50% of your solar costs—sometimes more! Here’s what financing and incentives look like!

What’s the best option for buying solar panels for your home?

The bottom line? There’s no “right” way to buy solar panels for your home. You can combine financing options as needed. Here is an example of how a GreenSpark residential customer used a combination of solar incentives and financing options to fund their solar project and reduce their final out of pocket cost.

Our team will work with you one-on-one to evaluate the best financing plan for your energy and budgetary needs.