The average residential electricity rate in New York is about 29.9 cents per kWh in 2026 (EIA Electric Power Monthly, Table 5.6.A, May 2026), one of the highest in the country and roughly 60% above the U.S. average of about 18.4 cents. That statewide figure hides a wide spread: upstate territories like National Grid, NYSEG, RG&E, and Central Hudson run lower, in the high teens to low 20s, while downstate Con Edison in New York City and PSEG Long Island run much higher, into the mid-20s to low-30s. New York also has retail supply choice, so your bill splits into a supply half you can shop and a delivery half you cannot. Rooftop solar with New York net metering offsets the all-in rate, so every kWh your roof makes cancels one you would buy at that full price and locks it in against future increases.
By SolarFY Editor · Last reviewed July 2026
New York has some of the highest electricity prices in the country, and in 2026 the number on your bill is the strongest reason to look at rooftop solar. The rate you actually pay depends heavily on where you live, because New York is really two rate stories: an expensive downstate (New York City and Long Island) and a more moderate upstate. On top of that, New York has retail supply choice, so the supply rate you can shop is only half your bill, not the all-in rate. This page breaks down what New York homeowners really pay per kilowatt-hour in 2026 by utility, why downstate bills are so high, and how solar with New York net metering and the state’s 25% tax credit turns that high rate into savings you can lock in.
New York homeowners pay about 29.9 cents per kWh all-in in 2026 (EIA Electric Power Monthly, Table 5.6.A, May 2026), one of the highest statewide averages in the nation, and the supply-only rate your utility or a competitive supplier quotes sits well below that all-in number.
Updated for 2026. Every rate and figure below is dated to its source and was last reviewed in July 2026. Utility supply and delivery rates change on their own schedules and vary sharply between upstate and downstate, so confirm the current number on your own bill.
What New York homeowners actually pay per kWh in 2026
New York homeowners pay about 29.9 cents per kWh all-in in 2026, one of the highest statewide averages in the country (EIA, May 2026). Here is how that breaks down.
- The all-in statewide average is about 29.9 cents per kWh. New York residential electricity averaged 29.93 cents per kWh in May 2026 (EIA Electric Power Monthly, Table 5.6.A), and about 28.6 cents earlier in the year (March 2026), roughly 60% above the national average of about 18.4 cents. For a typical New York home that lands near $180 a month.
- Upstate is cheaper, downstate is much more expensive. The statewide average is volume-weighted toward the dense, high-priced downstate. Upstate utilities like National Grid, NYSEG, RG&E, and Central Hudson run lower, roughly high teens to low 20s cents per kWh all-in, while Con Edison in New York City and PSEG Long Island carry the highest bills in the state, into the mid-20s to low-30s (Con Edison and PSEG Long Island, as of 2026).
- Your bill splits into supply and delivery, and you can only shop the supply half. New York has retail supply choice, so a competitive supplier (an ESCO) can serve the supply portion while your utility still handles delivery. The supply rate is not your full rate. As one example, PSEG Long Island’s residential power-supply charge was about 15.18 cents per kWh in June 2026 (PSEG Long Island), with delivery on top; NYSEG’s residential supply price ran near 10 cents per kWh in early 2026 (NYSEG). Delivery charges and riders make up the rest of your all-in rate.
- Solar offsets the all-in rate, and New York net metering credits it. New York credits rooftop solar for the power you send back to the grid under net metering, with the state gradually moving newer systems to its Value of Distributed Energy Resources (VDER) Value Stack (New York Department of Public Service, as of 2026). Either way, the kWh your roof makes offsets one you would have bought at that high all-in rate.
- New York still has a 25% state tax credit, separate from the federal one. New York’s Solar Energy System Equipment Credit is worth 25% of your system cost, capped at $5,000, and it applies to a purchase, a qualifying lease, or a 10-year-plus PPA (New York State Department of Taxation and Finance, as of 2026). This state credit is distinct from the federal 25D residential credit, which ended after December 31, 2025.
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so a New York homeowner who buys solar in 2026 cannot claim the federal credit, though New York’s own 25% credit, net metering, and NY-Sun continue.
Key numbers, dated and sourced
- New York residential all-in rate: 29.93 cents per kWh, May 2026 (about 28.6 cents in March 2026) (EIA Electric Power Monthly, Table 5.6.A).
- U.S. average residential rate: about 18.4 cents per kWh, May 2026 (EIA), so New York sits roughly 60% above the national average.
- New York Solar Energy System Equipment Credit: 25% of system cost, capped at $5,000, nonrefundable with a 5-year carryforward (NY Department of Taxation and Finance, as of 2026).
- A 6 kW system in New York City produces about 8,026 kWh a year, as of 2026 (NREL PVWatts, 10001); the same system near Albany makes about 7,285 kWh (12203).
- According to MySolarFY’s analysis (as of July 2026), a typical New York home offsets about $2,155 of electricity a year with net metering (EIA rate times NREL PVWatts production).
What is the price per kWh in New York, and why so much of it is “delivery”
New York’s all-in residential rate is about 29.9 cents per kWh in 2026, one of the highest in the nation. The EIA puts the statewide residential average at 29.93 cents per kWh in May 2026 (EIA), which lands a typical home near $180 a month. That is roughly 60% above the U.S. average of about 18.4 cents, and it is the number that matters for solar, because solar offsets the whole delivered rate, not just one piece of it.
Your bill has two halves, and you can only shop one of them. In New York’s retail-choice market, every electric bill splits into supply (the cost of generating the power) and delivery (moving it over the utility’s wires, plus fixed charges and riders). You can buy the supply half from your utility’s default rate or shop it with a competitive supplier called an ESCO, but the delivery half stays with your local utility no matter what (Con Edison, as of 2026). Here is the catch: when a rate page tells you New York power is “about 15 cents,” that is usually the supply-only number. Your all-in rate, supply plus delivery, is the high-20s figure the EIA reports statewide, and much higher in the city. Solar is credited against that all-in rate under net metering, which is exactly why the gap matters.
New York electricity rates by utility: Con Edison, National Grid, PSEG Long Island and more
Seven main utilities serve almost all New York homeowners, and where you live sets both your delivery rate and how high your bill runs. Con Edison serves New York City and Westchester and carries the highest average residential bills in the state. PSEG Long Island serves Nassau and Suffolk counties on Long Island, also well above the state average. Orange & Rockland covers the lower Hudson Valley near the New Jersey border. Upstate, National Grid serves much of central, northern, and western New York, NYSEG and RG&E (both Avangrid companies) cover large upstate territories, and Central Hudson serves the mid-Hudson Valley. Your delivery utility is fixed by where you live. Each of those utility guides covers its own net-metering and interconnection details in full.
| Utility | Service area | Where its all-in rate sits | What to confirm |
|---|---|---|---|
| Con Edison | New York City and Westchester | Highest in the state, into the low 30s cents per kWh all-in | Check your current supply and delivery rates on Con Edison’s rate page and your own bill |
| PSEG Long Island | Nassau and Suffolk (Long Island) | Well above the state average, mid-20s to high-20s all-in | Confirm PSEG Long Island’s current power-supply charge (about 15.18 cents per kWh in June 2026) plus delivery |
| Orange & Rockland | Lower Hudson Valley | Downstate pricing, high 20s all-in | Confirm O&R’s current supply and delivery charges on your bill |
| Central Hudson | Mid-Hudson Valley | Lower than downstate, around the low 20s all-in | See the Central Hudson solar guide for net metering and interconnection |
| National Grid, NYSEG, RG&E | Upstate central, northern, and western NY | Lowest in the state, high teens to low 20s all-in | Look up your specific upstate utility’s supply and delivery rates; NYSEG’s supply ran near 10 cents in early 2026 |
Note: The supply rate is only half your bill, and supply and delivery reset on different schedules, so we do not quote a single fixed all-in cents figure per utility that would be stale within months. Two homes in different territories can see very different bills at the same usage, because delivery charges, the monthly customer charge, and riders vary widely between downstate and upstate. The one figure that reflects your true cost per kWh is your own bill: divide a month’s total dollars by the kWh used. That all-in cents-per-kWh is what solar offsets. For the exact supply rate on your account, check your utility’s rate page or the state’s supplier-comparison tools.
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Why is electricity so expensive in New York, and why is downstate worse?
New York rates are high because downstate demand is dense, delivery is costly, and the region leans on imported power. New York City and Long Island pack enormous electricity demand into a small, congested grid, which pushes up delivery and capacity costs far above the rest of the state. That is why Con Edison and PSEG Long Island bills run into the mid-20s to low-30s cents per kWh while upstate utilities on cheaper, less congested lines sit in the high teens to low 20s (Con Edison, as of 2026). The statewide EIA average of 29.9 cents is a blend that leans toward the pricey downstate because that is where most of the customers are.
The takeaway for a homeowner is about direction, not just today’s number. New York rates have trended up with regional wholesale and capacity costs, and the downstate delivery pressure is structural, not a one-time spike, so it is unlikely to reverse on its own. That is what makes locking in a portion of your usage with solar attractive, especially downstate where the rate you offset is highest. For the full state picture, see our New York solar guide and the numbers behind it in our New York solar data and statistics for 2026.
Who is the cheapest electricity supplier in New York?
Because New York has retail supply choice, you can shop the supply half of your bill, but “cheapest” is a moving target and your utility’s default supply rate is the benchmark. Any licensed competitive supplier (an ESCO) that beats your utility’s default supply rate lowers your supply cost; any that is higher raises it. The trap is teaser pricing: a low introductory supply rate that resets to a higher variable rate after a few months, which is how some households end up paying more, not less, after switching (New York Department of Public Service, as of 2026). Two honest points a rate page should make:
- Shopping only touches supply. You cannot shop away the delivery charges, the monthly customer charge, or the riders. Those stay with your utility no matter who supplies the electrons, and downstate those delivery charges are the bigger part of the bill.
- Solar addresses the delivered rate you pay regardless of supplier. Whether you are on your utility’s default supply or an ESCO plan, the kWh your roof produces offsets your full retail rate under net metering. That is a different lever than switching suppliers, and the two can stack.
Most New York residential customers are on a flat rate with no peak or off-peak windows, so “off-peak hours” do not apply unless you specifically enroll in an optional time-of-use rate, which utilities like Con Edison and PSEG Long Island offer for customers who can shift heavy usage such as EV charging to overnight hours (PSEG Long Island, as of 2026).
How much can solar save on a New York electric bill?
At about 29.9 cents per kWh all-in, a right-sized system offsets most of a typical New York home’s electricity, and net metering credits it against that high rate. New York credits rooftop solar for the excess power it sends to the grid under net metering, with newer systems increasingly compensated under the state’s VDER Value Stack (New York Department of Public Service, as of 2026). So a kilowatt-hour your roof exports at noon offsets a kilowatt-hour you pull back later, at that same high all-in rate. The one caveat: if your system produces more than you use across the whole year, that surplus is credited at a lower value, not full retail, and crediting does not erase the fixed monthly customer charge. The practical move is to size the system close to your yearly usage rather than oversize it.
The table below is our own estimate for New York, computed from the state’s all-in rate and local production, not a figure lifted from another site. Instead of resizing the system to match each home, it holds one representative 6 kW system constant, roughly what an average New York home installs, and shows how much of four different usage levels that same array offsets. That is the useful part: the identical system covers a light user’s whole bill but only part of a heavy user’s, and the dollar offset stops climbing once your usage passes what the panels make. It uses the EIA statewide rate of 29.93 cents per kWh (May 2026) and New York City production of 8,026 kWh a year for a 6 kW system (PVWatts, 10001). Your own numbers depend on your roof, shading, usage, and utility, so treat this as an estimate and check your address.
| Your annual usage | Annual bill at 29.93 cents/kWh | A 6 kW system produces (NYC) | Share of your usage it offsets | Estimated annual bill offset |
|---|---|---|---|---|
| 6,000 kWh (about 500/mo) | About $1,796 | About 8,026 kWh | About 100%, with a small surplus | About $1,796 |
| 7,200 kWh (NY typical, about 600/mo) | About $2,155 | About 8,026 kWh | About 100% | About $2,155 |
| 10,000 kWh (about 833/mo) | About $2,993 | About 8,026 kWh | About 80% | About $2,402 |
| 13,000 kWh (about 1,083/mo) | About $3,891 | About 8,026 kWh | About 62% | About $2,402 |
Inputs and assumptions: all-in rate 29.93 cents/kWh (EIA, May 2026); production 8,026 kWh a year for a 6 kW system in New York City (NREL PVWatts, 10001). The annual bill offset is the production you actually use times the rate, capped at your usage; a light user’s year-end surplus is credited at a lower value, not full retail. Upstate homes on cheaper rates offset fewer dollars for the same production, and a home near Albany makes about 7,285 kWh from the same 6 kW system (PVWatts, 12203). To turn this into a payback against a real installed price, run your address through our solar cost and savings guide. Estimate only, not a quote.
The bigger driver is what you avoid over 25 years as rates keep climbing. A New York home at the typical usage level spends about $2,155 on electricity this year. Held flat that is roughly $54,000 over 25 years, but New York rates have not held flat; at a modest 2% to 3% a year that same 25-year spend is about $69,000 to $79,000 (SolarFY estimate, compounding the EIA rate). Solar does not make electricity free, but it locks in a large share of that spend at today’s cost, which is the real hedge against the next rate increase. To run the payback for your own roof and utility, see our solar cost and savings guide and how much homeowners save on energy with solar.
What that means for simple payback in New York. At a representative installed price of about $3 per watt in 2026, a 6 kW system runs roughly $18,000 before incentives (see our solar cost and savings guide for current pricing). The federal 25D homeowner credit ended after December 31, 2025, so a 2026 buyer does not get that, but New York’s 25% state credit trims about $4,500 off (capped at $5,000), and NY-Sun rebates can lower it further, bringing net cost near $13,500 before any rebate. Dividing that by the roughly $2,155 a year this system offsets on a typical bill puts simple payback near 6 to 7 years on bill savings alone, faster downstate where the rate is highest. For a full New York cost and payback breakdown by region, including net cost after the 25% state credit, see our New York solar cost guide. That is an illustration built from the state rate and NYC production above, not a quote; your installed price, roof, and utility move the number, so check your address.
Does New York have net metering and a state tax credit?
Yes, and together they are why New York is a strong solar state even though the federal homeowner credit ended. New York credits rooftop solar for the power you export under net metering, and the state is gradually moving newer systems to its Value of Distributed Energy Resources (VDER) Value Stack, so many small residential systems can still enroll in net metering today while new interconnections increasingly fall under VDER depending on the utility and application date (New York Department of Public Service, as of 2026). On top of that, New York offers something most states do not: a state income tax credit worth 25% of your system cost, capped at $5,000, that applies to a purchase, a qualifying lease, or a long-term PPA (NY Department of Taxation and Finance, as of 2026). The NY-Sun program adds an up-front rebate on top (NYSERDA NY-Sun, as of 2026). We keep the full net-metering and VDER mechanics on our New York net metering and VDER explainer, and the full incentive picture on our New York solar tax credits guide, rather than repeating them at length here.
| What it pays | How it is valued | Who receives it |
|---|---|---|
| Net-metering / VDER credits on exports | Credit against your bill for exported power; newer systems increasingly on the VDER Value Stack, with year-end surplus valued lower than full retail | The utility account holder |
| New York Solar Energy System Equipment Credit | 25% of system cost, capped at $5,000, nonrefundable with a 5-year carryforward | The homeowner (also available on qualifying leases and long-term PPAs) |
| NY-Sun rebate | An up-front incentive per watt that steps down over time and varies by region | Usually passed through to the homeowner by the installer |
| Federal residential tax credit (Section 25D) | Ended for systems placed in service after December 31, 2025 | Not available to 2026 homeowner-buyers |
What the end of the federal tax credit means for New York solar
The federal homeowner credit is gone, but New York’s own credit is not, and that is the key distinction. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a New York homeowner who buys solar with cash or a loan in 2026 cannot claim the federal credit (IRS, as of January 2026). Do not confuse that ended federal credit with New York’s separate 25% state credit, which is still active in 2026 and capped at $5,000 (NY Department of Taxation and Finance). You will still see installer pages asking whether the 30% credit is going away; the accurate answer for 2026 is that the federal homeowner version already ended, while New York’s state credit, net metering, and NY-Sun continue. For the full timeline, see what the federal solar tax credit change means in 2026, and for the state-level picture that continues, see New York solar tax credits and incentives in 2026.
One federal exception exists, and it is not the homeowner’s to claim. A separate commercial credit, Section 48E, can apply to a leased or power-purchase-agreement system, but the company that owns the panels claims it, not the homeowner (IRS, as of 2026). On a lease or PPA you do not file for a federal credit yourself, though you may still qualify for New York’s state credit. The 25D federal homeowner credit, by contrast, ended after December 31, 2025.
How to compare solar options against your New York rate
Because your utility rate is the thing solar competes with, the smartest comparison starts with your own bill, then screens installers on objective criteria rather than a “best installer” list. When you weigh quotes:
- Start from your all-in rate, not the supply rate. Divide a recent bill’s total by the kWh used, then ask each installer to model savings against that number and your actual usage, not a generic state average. This matters most downstate, where the all-in rate is far above the supply figure.
- Confirm the quote uses today’s rules. A quote should reflect current net-metering or VDER terms and New York’s 25% state credit, and it should not lean on the federal residential credit that ended after December 31, 2025. A quote built on that ended federal credit is not comparable to one built on 2026 reality.
- Screen every installer the same way. Look for NABCEP certification, valid New York licensing and contractor registration, a written workmanship and equipment warranty, and real experience with Con Edison, PSEG Long Island, or your upstate utility’s interconnection. For a full checklist, see the right questions to ask a solar installer.
- Compare ownership paths. Cash and loan keep the most lifetime savings and the full state credit; a lease or PPA can mean no up-front cost for eligible homeowners and can still qualify for New York’s state credit, but it is a long-term agreement with monthly payments, not free solar. See whether solar panels are worth it.
New York has a deep, competitive installer market across Long Island, New York City, the Hudson Valley, and upstate, which is good for pricing. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. It helps to see how your rate stacks up against neighbors too, like the New Jersey electricity rates just across the Hudson. You can also read how MySolarFY works and our data and methodology to see how we research these numbers.
Check which solar programs are available at your New York address →
Frequently asked questions
What is the price per kWh in New York in 2026?
New York’s all-in residential electricity rate averages about 29.93 cents per kWh as of May 2026 (about 28.6 cents in March 2026) (EIA Electric Power Monthly, Table 5.6.A), roughly 60% above the national average of about 18.4 cents, which puts a typical home near $180 a month. That all-in figure includes both supply and delivery, and it hides a wide spread: upstate utilities run in the high teens to low 20s while Con Edison in New York City and PSEG Long Island run into the mid-20s to low-30s. The supply-only rate you can shop is well below the all-in number, with delivery charges and riders making up the difference.
Why is electricity so expensive in New York, and why is downstate worse?
New York rates are high because downstate demand is dense and delivery is costly. New York City and Long Island pack huge electricity demand into a congested grid, which pushes Con Edison and PSEG Long Island bills into the mid-20s to low-30s cents per kWh, while less congested upstate territories sit in the high teens to low 20s (Con Edison, 2026). The statewide EIA average of about 29.9 cents leans toward downstate because that is where most customers are. Because the downstate delivery pressure is structural rather than a one-time spike, it is unlikely to reverse on its own.
Who is the cheapest electricity supplier in New York?
New York has retail supply choice, so you can shop the supply portion of your bill, and any licensed supplier (an ESCO) that beats your utility’s default supply rate lowers your supply cost. There is no single permanent “cheapest,” and low introductory rates that reset to higher variable rates are a common trap (New York Department of Public Service). Remember that shopping only affects supply; delivery charges stay with your utility, and downstate those are the larger part of the bill. Solar works on a different lever, offsetting your full retail rate under net metering no matter which supplier you use.
Is the supply rate what I actually pay per kWh?
No. The supply rate is only the generation half of your bill, the part you can shop with a competitive supplier (Con Edison, as of 2026). Your all-in rate adds delivery charges, the monthly customer charge, and riders on top, which is why a supply figure near 15 cents becomes a much higher all-in rate on a real New York bill, especially downstate. To find your true cost per kWh, divide a month’s total dollars by the kWh you used. That all-in number is what rooftop solar offsets.
How much can solar save on a New York electric bill?
At about 29.9 cents per kWh, a typical New York home using 7,200 kWh a year spends roughly $2,155 on electricity (EIA, May 2026). A 6 kW system in New York City produces about 8,026 kWh a year (NREL PVWatts), which offsets almost all of that under net metering, roughly $2,155 a year, before the state credit. New York’s 25% state credit (up to $5,000) and NY-Sun rebates shorten payback to about 6 to 7 years, faster downstate where the rate is highest. Savings vary by roof, usage, and utility, so treat these as estimates and check your address.
Did the 30% federal solar tax credit end for New York homeowners?
Yes. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act (IRS, as of January 2026), so a New York homeowner who buys solar in 2026 cannot claim the federal credit. But do not confuse that with New York’s own credit: the state Solar Energy System Equipment Credit, worth 25% of system cost up to $5,000, is a separate program and is still active in 2026 (NY Department of Taxation and Finance). New York net metering and NY-Sun were not affected either, so the state-level case for solar holds up on its own.
Does New York have net metering, and what does it pay?
Yes. New York credits rooftop solar for the power you export under net metering, and the state is gradually moving newer systems to its VDER Value Stack, so many small residential systems can still enroll in net metering today while new interconnections increasingly fall under VDER depending on the utility and application date (New York Department of Public Service, as of 2026). Existing net-metering customers are typically grandfathered. Either way, the credit offsets power at your high all-in rate, any year-end surplus is valued below full retail, and it does not erase the fixed monthly customer charge, so the smart move is to size a system close to your annual usage rather than oversize it.
Reviewed by the SolarFY editorial team. Figures were verified against the linked EIA Electric Power Monthly (Table 5.6.A), New York Department of Taxation and Finance, New York Department of Public Service, NYSERDA, Con Edison, PSEG Long Island, and IRS sources as of July 2026. Utility supply and delivery rates change on their own schedules, the New York 25% state credit and NY-Sun rebate terms can change, and net metering is transitioning to VDER, so confirm current terms with your utility, NYSERDA, and the New York Department of Public Service 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, a utility, an electricity supplier, a financing company, or a 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. Homeowners do not get the federal residential credit that ended after December 31, 2025, though New York’s separate 25% state credit may still apply. Solar panels are not free and monthly payments apply. Electricity rates, incentives, savings, and net-metering terms vary by utility and are not guaranteed. See our full disclaimer.
