PSEG Long Island credits your rooftop solar at the full retail rate. Every kilowatt-hour your panels send to the grid earns a one-for-one credit at the same price you pay for power, and those credits roll forward to offset later usage under PSEG Long Island’s net-metering tariff (PSEG Long Island, as of 2026). This is not the upstate New York value stack. According to MySolarFY’s analysis (as of July 2026), a typical 8 kW Long Island system produces about 10,800 kWh a year (NREL PVWatts, Hempstead) and offsets roughly $3,080 a year of electricity at New York’s 28.55 cents per kWh rate (EIA, as of March 2026).
- Full retail net metering: exports are credited one-for-one at the retail rate, not a market-based value stack (PSEG Long Island, as of 2026).
- Time-of-day banks: most residential customers are on a time-of-day rate, so credits sit in separate peak and off-peak banks measured in kWh, and you can ask PSEG Long Island to move credits between them (PSEG Long Island, as of 2026).
- Different from upstate: Con Edison and the upstate utilities add a monthly Customer Benefit Contribution and can push larger systems onto the VDER Value Stack; PSEG Long Island runs its own LIPA net-metering tariff (DSIRE, as of 2026).
- New York’s state solar credit is 25% of system cost, capped at $5,000 (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.
Estimate, not a quote. The offset figure multiplies NREL PVWatts production modeled for Hempstead by New York’s average residential rate; a fixed monthly service charge stays on your bill regardless. Your own number varies by roof, usage, equipment, and installer.
Updated for 2026 with PSEG Long Island’s full retail net-metering rule, the time-of-day credit banks, and how Long Island’s crediting differs from the VDER Value Stack and Customer Benefit Contribution that govern Con Edison and upstate New York. If PSEG Long Island is your utility, this page explains exactly how your solar credits work and why the mechanics here are their own thing.
Three PSEG Long Island questions confuse almost everyone, and the big national solar guides tend to blur all three into a generic “New York net metering” answer that does not fit Long Island. First, does PSEG Long Island still pay full retail for the power you export, or has it moved to a value stack like the rest of the state? Second, why do your credits land in two separate buckets instead of one? Third, how does the New York 25% state credit stack on top? This page answers each with PSEG Long Island’s own tariff, so you can size a system and read a quote with the real rules in hand.
How PSEG Long Island net metering works in 2026
PSEG Long Island credits your exported solar one-for-one at the full retail rate. When your panels make more than your home is using, the surplus flows to the grid and PSEG Long Island records it in kilowatt-hours. Each exported kWh is a credit worth the same retail price you pay to buy power back, and any credit you do not use in a billing period rolls forward to offset a later bill (PSEG Long Island net metering, as of 2026). That full retail credit is the engine of the payback here, because Long Island power is expensive: New York’s residential rate averages about 28.55 cents per kWh (EIA, as of March 2026), among the highest in the country, so every kWh you offset is worth a lot.
PSEG Long Island operates the Long Island Power Authority (LIPA) electric system and is the interconnection authority for the whole region, which is why its rules, not Con Edison’s, govern your solar. The table below is the mechanism at a glance.
| How it works | What to know for 2026 |
|---|---|
| Export credit | Full retail net metering: one-for-one at the retail rate, measured in kWh, not a market value stack |
| Rollover | Unused credits carry forward to offset later bills rather than being cashed out each month |
| Time-of-day banks | On a time-of-day rate, credits accrue in separate peak and off-peak banks; the peak window is 3pm to 7pm on weekdays |
| Bank transfer | You can ask PSEG Long Island to move credits between your peak and off-peak banks |
| Territory | All of Nassau County, all of Suffolk County, and the Rockaway Peninsula in Queens |
| Before you switch on | PSEG Long Island must grant Permission to Operate before the system starts banking credits |
The time-of-day banks: why your credits sit in two buckets
The Long Island twist is timing. Because most PSEG Long Island residential customers are now on a time-of-day rate, the credits you earn are not pooled into a single balance. They are tracked in separate banks by time period, so a kilowatt-hour you export during the expensive peak window is banked apart from one you export off-peak (PSEG Long Island time-of-day net metering, as of 2026). The peak period is 3pm to 7pm on weekdays, when power is priciest, and almost everything else is off-peak.
Rooftop solar produces hardest at midday, which is off-peak, so much of your export piles up in the off-peak bank while your most expensive usage falls in the 3pm to 7pm peak. To fix that mismatch, PSEG Long Island lets you request a transfer of credits between your peak and off-peak banks, so cheaper off-peak credits can offset costly peak usage (PSEG Long Island time-of-day tips, as of 2026). The transfer is made on request, not automatically, so it is worth asking your installer or PSEG Long Island how to set it up. For the basics of how export credits work in general, see our explainer on how net metering credits your solar exports.
Why storage comes up a lot on Long Island: the time-of-day banks reward production that lines up with the pricey 3pm to 7pm window. A battery makes that easier, because it can store cheap midday production and discharge it during peak hours instead of relying only on a bank transfer. That is one reason solar and storage are usually quoted together here.
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How PSEG Long Island differs from upstate New York VDER and the CBC charge
PSEG Long Island pays full retail net metering, while Con Edison and upstate New York run the VDER Value Stack plus a monthly CBC charge. That one difference is why “New York net metering” is really two systems. Most of New York, including Con Edison in New York City and Westchester and the big upstate utilities, is regulated by the New York Public Service Commission, which replaced simple net metering with two extra layers: the VDER Value Stack, a market-based export value that for a typical home usually totals less than full retail, and a monthly Customer Benefit Contribution (CBC), a per-kW charge added to net-metered solar for systems interconnected on or after January 1, 2022 (New York net metering and the VDER Value Stack). PSEG Long Island is not one of those PSC-regulated utilities. It runs the LIPA system under its own tariff, and for residential rooftop solar that tariff is full retail net metering, credited one-for-one in kWh (DSIRE New York net metering, as of 2026).
| What to compare | PSEG Long Island (LIPA) | Con Edison and upstate NY (PSC) |
|---|---|---|
| Residential export credit | Full retail net metering, one-for-one in kWh | Phase One net metering at retail, with the VDER Value Stack as the market-value alternative |
| Monthly CBC charge | Not part of PSEG Long Island’s residential net-metering tariff; confirm any charges on your bill | A per-kW Customer Benefit Contribution applies to systems interconnected on or after January 1, 2022 |
| Credit banking | Rolls forward; on time-of-day rates split into peak and off-peak banks you can transfer between | Rolls forward under the PSC net-metering framework |
| Regulator | LIPA, operated by PSEG Long Island | New York Public Service Commission |
The practical takeaway: a guide written for Con Edison customers does not describe your bill. On Long Island your exports earn full retail credit, and the CBC that eats into a New York City solar bill is part of the PSC regime, not PSEG Long Island’s residential net-metering tariff. Rules can change, so confirm the current terms and any monthly charges directly with PSEG Long Island before you sign. For the statewide picture, see our New York net metering and VDER Value Stack explainer and the New York solar hub.
The New York 25% state tax credit stacks on top
New York adds a 25% state tax credit, capped at $5,000, on top of PSEG Long Island net metering. Net metering is the recurring saving; this state credit is the one-time one, and they stack. New York gives residents a Solar Energy System Equipment Credit worth 25% of your system cost, capped at $5,000, claimed on Form IT-255 with a five-year carry-forward if your tax bill is smaller than the credit in year one (NY Dept. of Taxation and Finance, as of 2026). It applies to owned systems, and to leases or power purchase agreements of at least ten years. New York also exempts residential solar from state sales tax and from the added property-tax value the system creates, so the equipment and the home-value bump are not taxed. We walk through the full stack in our guide to New York solar tax credits in 2026.
The federal picture changed, so be clear about it. 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 Long Island 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 panels claims it, not the homeowner. New York’s net metering, its 25% state credit, and the tax exemptions were not affected, and against Long Island’s high rates they still carry a strong payback. For the full timeline, see what the end of the federal solar tax credit means in 2026.
What full retail net metering is worth on Long Island: a worked example
Because PSEG Long Island credits every exported kWh at the full retail rate, the value of your solar tracks your production times that high rate. The table below is our own estimate of the annual bill offset, the net cost after New York’s 25% state credit, and the resulting simple payback at common system sizes, using NREL PVWatts production modeled for Hempstead, New York’s 28.55 cents per kWh rate, and a typical Long Island installed price of about $2.90 per watt.
| System size | Estimated annual production (Hempstead) | Bill offset at 28.55 cents per kWh | Est. net cost after NY 25% credit | Simple payback |
|---|---|---|---|---|
| 6 kW | about 8,100 kWh | about $2,310 a year | about $13,050 | about 6 years |
| 7 kW | about 9,440 kWh | about $2,700 a year | about $15,300 | about 6 years |
| 8 kW | about 10,800 kWh | about $3,080 a year | about $18,200 | about 6 years |
| 10 kW | about 13,500 kWh | about $3,850 a year | about $24,000 | about 6 years |
Note: these are illustrations, not a quote. Production is NREL PVWatts v8 output modeled for Hempstead, about 1,350 kWh per kW per year (NREL PVWatts, as of 2026); the offset values that power at New York’s average residential rate (EIA, as of March 2026). Net cost assumes a typical Long Island installed price near $2.90 per watt, less New York’s 25% state credit capped at $5,000, and simple payback divides that net cost by the annual bill offset; the federal 25D credit, which ended for systems placed in service after December 31, 2025, is not included, so a real quote and payback vary by installer and roof. These figures assume your household uses or offsets at least as much power as the system produces, so every kWh is credited at full retail; a fixed monthly service charge stays on your bill even when your energy nets out, so plan for a small monthly bill rather than zero. Your own number depends on your roof’s pitch, shading, orientation, and usage, so estimate yours with the free PVWatts calculator.
Who PSEG Long Island net metering applies to
If your home is in PSEG Long Island territory, these are your rules. That means all of Nassau County, all of Suffolk County, and the Rockaway Peninsula in Queens. Towns and cities across the Island run on this same PSEG Long Island tariff, so the full retail net metering and the time-of-day banks described here apply whether you are in Hempstead, Hicksville, Great Neck, or anywhere else served by PSEG Long Island. City-level details are in our guides to solar in Hempstead, Hicksville, and Great Neck, and the regional overview is our Long Island solar guide.
One local wrinkle on incentives: the standard residential NY-Sun Megawatt Block rebate is fully allocated on Long Island, even though it is still open upstate and in Con Edison territory, so a generic promise of an upfront NY-Sun rebate usually does not apply here (DSIRE, as of 2026). An income-eligible Affordable Solar incentive remains for qualifying Long Island households (NYSERDA Long Island dashboard, as of 2026). What carries the payback here is full retail net metering against Long Island’s high rate, plus the New York 25% state credit. For the utility-wide cost and interconnection picture, see our PSEG Long Island solar guide.
What PSEG Long Island net metering does not give you
The honest negative space matters as much as the benefits. A few things you may expect are simply not on the table in 2026, and knowing them up front keeps a sales pitch from surprising you.
- No zero bill. Net metering offsets the energy you use, but a fixed monthly service charge stays on your PSEG Long Island account even in a month your panels fully cover your usage, so plan for a small bill, not nothing.
- No federal homeowner tax credit for a 2026 purchase. The 30% federal credit (Section 25D) ended for systems placed in service after December 31, 2025, so a cash or loan buyer in 2026 cannot claim it (IRS, as of 2026).
- No standard NY-Sun cash rebate for most Long Island rooftops. The standard residential Megawatt Block is fully allocated here; only the income-eligible Affordable Solar incentive remains (NYSERDA, as of 2026).
- No retail cash payout for chronic overproduction. Net metering banks credits and rolls them forward, so oversizing a system well past your usage does not turn the surplus into a retail check; size to your usage.
How your financing choice changes who keeps the value
Net-metering credits land on whoever holds the PSEG Long Island account, but ownership decides who keeps the state tax credit. If you own the system through cash or a solar loan, the net-metering bill credits and New York’s 25% state credit are yours. A lease or a power purchase agreement can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and the company that owns the panels keeps the state credit and any battery rebate while your net-metering credit still lowers your electric bill.
| Path | Up-front cost | Who keeps the tax benefits | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime value |
| Solar loan | Little to none, financed | You, the owner | You want ownership without paying cash up front |
| Lease or PPA | $0-up-front where eligible | The third-party owner | You prefer no up-front cost and a simple monthly bill |
How to choose an installer who sets your net metering up right
Long Island has a deep, competitive installer market, and the interconnection paperwork, the time-of-day bank setup, and the battery sizing are where a good installer earns their keep. Rather than chasing a “best installer” list, screen any company against objective criteria:
- A valid New York home improvement contractor license and the required local permits.
- NABCEP certification, the industry’s professional standard for PV installers.
- A clear workmanship and equipment warranty in writing.
- Real experience with PSEG Long Island interconnection and Permission to Operate, and a willingness to set up your peak and off-peak bank transfer.
- A written quote that shows your bill after solar with the fixed service charge included, and that does not count the federal homeowner credit that ended after December 31, 2025. For how we research and match, see how MySolarFY works and how we source our data.
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Frequently asked questions
How does PSEG Long Island net metering work in 2026?
PSEG Long Island credits your exported solar one-for-one at the full retail rate, measured in kilowatt-hours, and unused credits roll forward to offset later bills. Because most residential customers are on a time-of-day rate, those credits are tracked in separate peak and off-peak banks rather than one pool, and you can ask PSEG Long Island to move credits between them. The peak window is 3pm to 7pm on weekdays. This full retail crediting is what makes solar pay off quickly against Long Island’s high 28.55 cents per kWh rate.
Does PSEG Long Island use the VDER Value Stack like the rest of New York?
No. The VDER Value Stack and the monthly Customer Benefit Contribution govern Con Edison and the upstate utilities that the New York Public Service Commission regulates. PSEG Long Island operates the LIPA system under its own tariff, and for residential rooftop solar that tariff is full retail net metering, credited one-for-one in kWh. So a guide written for a New York City customer does not describe a Long Island bill. Rules can change, so confirm the current terms and any monthly charges directly with PSEG Long Island before you sign.
What is the time-of-day net meter bank, and can I move credits between banks?
On a time-of-day rate the credits you earn sit in separate peak and off-peak banks measured in kilowatt-hours. Because rooftop solar produces most at midday, which is off-peak, a lot of your export lands in the off-peak bank while your priciest usage is in the 3pm to 7pm peak. PSEG Long Island lets you request a transfer of credits between the peak and off-peak banks so off-peak credits can offset peak usage. The transfer is made on request, not automatically, so ask your installer how to set it up.
How much does full retail net metering save a Long Island home?
It depends on your production and usage, but the value is large because Long Island power is expensive. According to MySolarFY’s analysis (as of July 2026), a typical 8 kW Long Island system produces about 10,800 kWh a year (NREL PVWatts, Hempstead) and offsets roughly $3,080 a year at New York’s 28.55 cents per kWh rate (EIA, as of March 2026). A 6 kW system offsets about $2,310 and a 10 kW system about $3,850. A fixed monthly service charge stays on the bill, so plan for a small bill rather than zero, and run your own address for a real estimate.
Does PSEG Long Island charge a Customer Benefit Contribution?
The Customer Benefit Contribution is a per-kW monthly charge that Con Edison and the upstate New York utilities add to net-metered solar under the Public Service Commission’s 2022 order, for systems interconnected on or after January 1, 2022. PSEG Long Island is not one of those PSC-regulated utilities; it runs its own LIPA net-metering tariff, so the CBC that hits a New York City solar bill is not part of PSEG Long Island’s residential net metering. A fixed monthly service charge does stay on every account, so confirm the exact line items with PSEG Long Island before you sign.
What happened to the federal solar tax credit for Long Island buyers in 2026?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Long Island homeowner buying with cash or a loan in 2026 cannot claim it. 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, its 25% state credit, and the sales-tax and property-tax exemptions were not affected, and against Long Island’s high rates they still carry a strong payback.
Reviewed by the SolarFY Editor (reviewed July 2026). Figures were verified against PSEG Long Island’s published net-metering and time-of-day pages, DSIRE, EIA, NREL PVWatts, the New York State Department of Taxation and Finance, and IRS sources as of July 2026; net-metering terms, incentive availability, and electricity rates are set by PSEG Long Island, LIPA, and New York State and are reviewed regularly, so confirm the current figures with PSEG Long Island and NYSERDA before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about how MySolarFY works.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, tax advisor, 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 tax benefits and incentives generally go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit (Section 25D) that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Net-metering credits, savings, and electricity rates vary by utility and year and are not guaranteed. See our full disclaimer.
