New York homeowners didn’t need a report to tell them their electric bills have been climbing. But the numbers are worth knowing anyway: electricity rates in New York have more than doubled over the past decade — and every major utility in the state has either raised rates in 2026 or is actively seeking to.
If you’ve been doing the math on solar and waiting for the right moment, this is what the math looks like right now.
What’s Happening Across New York’s Major Utilities
The rate picture varies depending on where you live, but the direction is the same everywhere.
Con Edison — serving New York City and Westchester County — had the most publicized fight. The utility originally proposed an 11.4% increase on the average electric bill starting in 2026. After significant pushback from elected officials and ratepayer advocates, the Public Service Commission approved a negotiated settlement: 3.5% in 2026, 3.2% in 2027, and 3.1% in 2028. The increases took effect retroactively on January 1. For a typical Westchester household using around 425 kWh per month, that’s about $5.32 more per month this year — and more the next two years after that.
PSEG Long Island — serving Nassau and Suffolk counties — has seen some of the sharpest rate movement in early 2026. The power supply rate went from $0.1298/kWh in January to $0.1469/kWh in February (a 13.2% increase) and then to $0.1657/kWh in March (another 12.7% jump). These are supply rate changes on top of delivery charges, and they add up quickly on a typical monthly bill.
Orange & Rockland Utilities — serving Rockland, Orange, and Sullivan counties — is mid-way through a three-year rate plan approved by the NYSPSC. Electric customers can expect a 3.3% delivery rate increase in 2026 and another 3.5% in 2027.
NYSEG (New York State Electric & Gas) — serving much of upstate New York — has filed for an increase in annual electric revenues of approximately $464 million, representing an 18.4% increase to total revenues. That case is working its way through the Public Service Commission now.
None of these are one-time events. They’re part of a pattern that’s been running for years.
Why This Matters for the Solar Calculation
The math on solar depends heavily on what you’re paying for electricity — and what you expect to pay in the future.
When you install solar, your panels produce electricity that offsets what you’d otherwise buy from the utility. Under New York’s net metering program, any excess energy your system produces gets credited to your bill at the retail rate. The more you pay per kilowatt-hour, the more valuable each kilowatt-hour your panels produce becomes.
New York electric rate increases don’t hurt solar owners the same way they hurt everyone else. In fact, every time your utility raises rates, the value of what your solar system produces goes up proportionally. A system that offset $1,800 of electricity costs in year one might offset $2,200 in year five — not because the panels got better, but because the electricity they replaced got more expensive.
This is what solar owners mean when they talk about locking in their rate. A solar loan payment is fixed. Your utility bill isn’t.
New York State Incentives Are Still on the Table
The 30% federal solar tax credit expired for homeowner-purchased systems at the end of 2025, but New York’s state-level programs are intact.
The New York State Solar Tax Credit gives you 25% of your installation cost back — up to $5,000 — as a direct credit on your state income tax return. That’s not a deduction; it’s a dollar-for-dollar reduction in what you owe.
On top of that, New York’s NY-Sun program through NYSERDA provides upfront rebates that reduce your system cost before you factor in the tax credit. Solar equipment is fully exempt from New York sales tax. And the added home value from solar is exempt from property tax assessment statewide.
For NYC homeowners, the Solar Property Tax Abatement adds another layer — up to 30% of system cost spread over four years, available through 2035.
Between state incentives and rising utility rates, the solar payback window in New York is holding up better than many people assume, even without the federal credit.
The $0-Down Option
Not every homeowner wants to write a large check upfront — and they don’t have to. Solar leases and Power Purchase Agreements (PPAs) are structured so that a third-party company owns the system on your roof. You pay a monthly rate for the electricity it produces, typically lower than what you’d pay the utility. The provider captures the available tax incentives; you capture a lower bill, starting immediately.
It’s worth comparing both options before deciding. For some homeowners, ownership makes more financial sense over the long run. For others, the $0-down route is the right fit. A good solar consultant will walk you through both.
The Broader Picture of New York Electric Rates
New York’s grid is aging. Utilities across the state are making significant infrastructure investments — upgrading transmission lines, replacing equipment, building substations — and those costs flow through to ratepayers over time. The rate increases we’re seeing in 2026 are part of a multi-year investment cycle that isn’t going to stop.
New York electricity costs have more than doubled over the past decade. Based on every pending rate case currently before the Public Service Commission, the next decade doesn’t look much different.
Solar won’t fix your electric bill overnight. But for a homeowner planning to stay in their house for the next ten to twenty years, it’s one of the few concrete ways to step off the utility rate escalator entirely.
If you’re in Westchester, Rockland, Long Island, the Hudson Valley, or anywhere else Con Edison, PSEG, or Orange & Rockland serves, we’re happy to show you what the numbers look like for your specific home — no obligation.
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