- New York residential power averages about 28.55 cents per kWh (EIA, as of March 2026), and Con Edison is among the highest-rate utilities in the country, so the bill your solar offsets is a large one.
- A new Con Edison residential system defaults to Phase One net metering, crediting exported power 1-for-1 at the retail rate, and you can instead opt into the VDER Value Stack (Con Edison distributed-generation tariffs, as of 2026).
- New York adds a Customer Benefit Contribution charge to net-metered solar, which for Con Edison residential customers is about $1.41 per kW of installed solar each month, effective March 1, 2026 (Con Edison CBC tariff, Statement No. 8, effective March 1, 2026).
- New York’s state solar credit is 25% of system cost, capped at $5,000, claimed on Form IT-255 (NY Dept. of Taxation and Finance, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of 2026), so most 2026 buyers cannot claim it.
If Con Edison is your electric utility across New York City and Westchester, this is how Con Edison net metering credits your rooftop solar in 2026, and you have a choice to make that most New York solar guides skip. A new residential system defaults to Phase One net metering, where your exported power earns full retail credit, but you can instead opt into New York’s VDER Value Stack, which pays differently. There is also a monthly charge unique to New York net metering that surprises people. This page explains both crediting paths, the Customer Benefit Contribution charge, how you connect, and how to tell whether your roof is a good fit.
Con Edison at a glance
Con Edison is the regulated electric delivery utility for all five New York City boroughs and Westchester County, and it is the interconnection authority for solar in that territory. If your roof sits in its area, your solar follows Con Edison’s rules and New York’s, not PSEG Long Island’s.
| Detail | What to know |
|---|---|
| Service territory | Manhattan, the Bronx, Brooklyn, Queens, and Staten Island, plus Westchester County (Con Edison service territories) |
| Rate context | New York residential power averages about 28.55 cents per kWh (EIA, March 2026), among the highest in the country |
| Default crediting | Phase One net metering: exports credited 1-for-1 at the retail rate, rolling forward |
| Other option | The VDER Value Stack, a monetary crediting tariff you can opt into instead |
| New York charge | A Customer Benefit Contribution charge per kW of installed solar, billed monthly and not offset by credits |
| Before you switch on | Con Edison must grant Permission to Operate (PTO) first |
How Con Edison credits your solar: net metering or the VDER Value Stack
You get to choose how your exported power is valued, and for most homes the default is the better deal. When your panels make more than your home uses, the extra flows to the grid, and Con Edison can credit it one of two ways. The default for a new residential system is Phase One net metering, where each exported kilowatt-hour earns a credit at the full retail rate and rolls forward to offset future use (Con Edison distributed-generation tariffs, as of 2026). The alternative is the VDER Value Stack, New York’s monetary crediting tariff, where exports earn dollar credits built from the wholesale energy price, a capacity value, and an environmental value rather than the retail rate (NYSERDA Value of Distributed Energy Resources, as of 2026). For a plain-English primer on how export credits work in general, see how net metering credits your solar exports, and for New York’s Value Stack rates and how to choose, see New York Net Metering & VDER Value Stack in 2026.
| Crediting option | How you are paid | Who it tends to suit |
|---|---|---|
| Phase One net metering (default) | Exports earn 1-for-1 credits at the full retail rate, rolling forward to offset later bills | Most residential rooftop, because credits are worth the full retail rate |
| VDER Value Stack (opt-in) | Exports earn monetary credits from wholesale energy value, capacity, and environmental value | Larger or specific projects; for a typical home it usually totals less than retail |
The practical takeaway: read the choice before you sign. For a standard home, full retail net metering generally beats the Value Stack, because the Value Stack is built on wholesale-based components that usually add up to less than the retail rate you pay (NYSERDA Value of Distributed Energy Resources, as of 2026). The choice also tends to be one-way, so moving from net metering to the Value Stack is allowed but moving back generally is not. Ask any installer which tariff their quote assumes, and why.
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The Customer Benefit Contribution: New York’s net-metering charge
Here is the charge that explains why a solar home’s Con Edison bill is rarely zero. New York adds a Customer Benefit Contribution, or CBC, to net-metered residential solar. It is a small monthly charge based on the size of your system in kilowatts, it shows up as its own line on your bill, and it is non-bypassable, which means your solar credits cannot wipe it out (NYSERDA 2026 CBC rates, as of 2026). It applies to systems interconnected on or after January 1, 2022 under the New York Public Service Commission’s framework, and it funds statewide clean-energy and low-income programs.
| Customer Benefit Contribution (Con Edison residential, 2026) | Monthly rate per kW of installed solar |
|---|---|
| On Phase One net metering | About $1.41 per kW, effective March 1, 2026 (Con Edison tariff) |
| On the VDER Value Stack | About $0.71 per kW, effective March 1, 2026 (Con Edison tariff) |
New York incentives a Con Edison customer can stack
Beyond net metering, several New York programs apply to a Con Edison home. The picture has one important wrinkle on the upfront rebate, so read the NY-Sun row carefully. For the statewide picture, see our New York solar incentives hub, and our guide to solar incentives for how they fit together.
| Incentive | What it gives you | The New York detail |
|---|---|---|
| NY State Solar Energy System Equipment Credit | 25% of system cost, capped at $5,000, claimed on Form IT-255 with a 5-year carry-forward (NY Tax) | Owned systems and leases or PPAs of at least 10 years qualify |
| Real property tax exemption (RPTL Section 487) | A 15-year exemption from the added property-tax value of the system (NY Senate, RPT 487) | Some local governments opt out, so confirm your city or county has not |
| State sales tax exemption | Residential solar equipment and installation are exempt from the 4% state sales tax (DSIRE) | Local New York City or county sales tax is separate and not automatically waived |
| NY-Sun Megawatt Block (upfront rebate) | A per-watt rebate paid through the installer in some New York regions | The standard residential block is fully allocated in Con Edison territory; an income-eligible Affordable Solar incentive remains for those who qualify |
The NY-Sun caveat matters in Con Edison territory. Generic New York solar guides often promise an upfront NY-Sun rebate. For most Con Edison homeowners that no longer applies, because the standard residential Megawatt Block here is fully subscribed, the same status as Long Island (NYSERDA Con Edison dashboard, as of June 2026). The one exception is the income-eligible Affordable Solar incentive, which remains for qualifying households. If you want to weigh the payback with these programs in mind, confirm the current block status on the NYSERDA dashboard before you sign.
How to connect solar to Con Edison
Connecting a home system follows New York’s Standardized Interconnection Requirements, administered by Con Edison, and the rule that matters most is that you cannot turn the system on until Con Edison grants Permission to Operate. The general path is:
- Interconnection application. You or your installer file the application with Con Edison before installation, with the system design, inverter data, and net-metering or Value Stack election.
- Utility review. Con Edison reviews the package under the Standardized Interconnection Requirements. Standard residential systems generally move faster than large or grid-constrained projects.
- Approval to install. You receive approval to build, but not yet to operate. Do not energize the system until the next steps are done.
- Install and inspect. The system is installed by a licensed contractor and passes your local electrical inspection.
- Meter and Permission to Operate. Con Edison sets the net meter and issues Permission to Operate. Your system only starts banking credits once it is approved to run.
A licensed installer normally manages this whole process, including the interconnection paperwork and your crediting election.
What changed federally, and what it means for New York City
The federal homeowner credit is gone, but New York’s programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Con Edison customer who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). For the full timeline, see what the end of the federal solar tax credit means in 2026. What carries the math now is New York’s own stack: full retail net metering, the 25% state credit, and the property-tax and sales-tax exemptions, none of which were affected, and which matter most against Con Edison’s high rates.
One federal exception remains, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner. On a leased system you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025, so do not let a sales pitch tell a 2026 cash or loan buyer otherwise.
How to choose a solar installer in Con Edison territory
New York City and Westchester are a competitive solar market, so you have plenty of licensed installers to choose from. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid New York Home Improvement Contractor license, which in New York City is issued by the Department of Consumer and Worker Protection.
- A clear workmanship and equipment warranty in writing.
- Real experience with Con Edison interconnection and Permission to Operate, and a clear recommendation on net metering versus the Value Stack for your home.
- A written production estimate and a transparent quote that shows your bill after solar, with the CBC and the service charge included.
For comparison with the neighboring New York utility, see how credits work under PSEG Long Island net metering, which uses time-of-day credit banks instead. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Check which solar programs are available at your address →
Looking at the specifics? See local solar guides for Manhattan, Queens, Staten Island, Yonkers, and the Bronx in this service area.
Frequently asked questions
How does Con Edison net metering work in 2026?
A new residential system in Con Edison territory defaults to Phase One net metering, which credits the power your panels export 1-for-1 at the full retail rate and rolls the credit forward to offset future bills (Con Edison, as of 2026). You can instead opt into the VDER Value Stack, a monetary crediting tariff, but for a typical home full retail net metering usually saves more. Whichever you choose, you still pay the basic monthly service charge and a Customer Benefit Contribution based on your system size, so a solar bill is rarely zero.
What is the VDER Value Stack, and should I choose it over net metering?
VDER is New York’s alternative crediting tariff. Instead of 1-for-1 retail credits, your exports earn monetary credits built from the wholesale energy price, a capacity value, and an environmental value (NYSERDA, as of 2026). For a typical residential rooftop those components usually total less than the retail rate, so full retail net metering tends to be the better deal at home. The choice also tends to be one-way, so you can move from net metering to the Value Stack but generally not back. Ask your installer which tariff their savings estimate assumes.
What is the Customer Benefit Contribution charge on my Con Edison bill?
The Customer Benefit Contribution, or CBC, is a monthly charge New York adds to net-metered residential solar, based on your system size in kilowatts. For Con Edison residential customers it is about $1.41 per kW each month on net metering, effective March 1, 2026, so a 6 kW system pays roughly $8.46 a month (Con Edison CBC tariff, Statement No. 8, effective March 1, 2026; see our Con Edison CBC charge and net metering guide for worked numbers by system size). It is non-bypassable, meaning your solar credits cannot offset it, it applies to systems interconnected on or after January 1, 2022, and the rate is set annually rather than locked at installation. It funds statewide clean-energy and low-income programs.
Why is my Con Edison bill still not zero after going solar?
Two reasons. First, net metering only offsets the energy you use, while the basic monthly service charge and the Customer Benefit Contribution still apply even when your energy charge nets out (NYSERDA, as of 2026). Second, sizing: a system smaller than your usage leaves part of your power bought at Con Edison’s high retail rate. A good quote shows your expected bill after solar with the service charge and the CBC included, not a promise that the bill disappears.
Does New York still offer a state solar credit and tax breaks?
Yes, and these are New York State benefits. New York’s Solar Energy System Equipment Credit is 25% of system cost, capped at $5,000, claimed on Form IT-255 with a 5-year carry-forward (NY Tax, as of 2026). The added value your system gives your home is exempt from property tax for 15 years under RPTL Section 487, though some local governments opt out, and residential solar equipment is exempt from the 4% state sales tax (DSIRE, as of 2026). Together these still carry a strong payback against Con Edison’s high rates.
What happened to the federal solar tax credit for Con Edison customers?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a homeowner buying with cash or a loan in 2026 cannot claim it (IRS, as of 2026). A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. New York’s net metering, the 25% state credit, and the tax exemptions were not affected and still carry the payback in 2026.
Do I qualify for net metering if I lease or sign a PPA?
Net-metering credits follow your Con Edison account, so the customer of record earns them whether you own, lease, or sign a PPA. The difference is the incentives: New York’s 25% state credit flows to the system owner, so on a lease or PPA the third-party company keeps it, while your benefit is a lower or fixed power price with no up-front cost. If you want the state credit in your own name, owning the system through cash or a loan is the path that captures it.
Reviewed by the MySolarFY team. Figures were verified against the linked Con Edison, NYSERDA, DSIRE, EIA, New York State Department of Taxation and Finance, New York Senate, and IRS sources as of June 2026; net-metering terms, the Customer Benefit Contribution rate, and electricity rates reset over time, so confirm current terms with Con Edison and NYSERDA before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the New York state credit goes to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
