Cost of electricity in New York: Real numbers from real people

Updated Aug 23, 2026

• Residents in New York spend about $259 per month on electricity based on utility bills shared with EnergySage—that translates to $0.23 per kWh of electricity, roughly 15% higher than the national average of $0.20/kWh.

• These costs add up: Over 25 years, you'll pay about $164,700 for electricity. In all-electric homes, that number could be a lot higher.

• Because New York has a deregulated electricity market, you might be able to shop around for electricity providers, rather than sticking with your utility company.

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What's the average electric bill in New York?

Residents in New York who request quotes on the EnergySage Marketplace spend an average of $259 monthly on electricity. That adds up to $3,108 per year. A different way to look at it is that a typical New York resident uses 1,116 kWh of electricity per month and 13,392 kWh over the year.

(For what it’s worth: New York residents shopping for solar on EnergySage may use more electricity than a typical household.)

The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 37 ¢/kWh.

As of August 2026, the cost of electricity in New York is 23 ¢/kilowatt-hour (kWh)—roughly 15% higher than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).

Who are the major electricity providers in New York?

In New York, there are four main electricity companies that provide transmission and distribution: Con Edison, National Grid, New York State Electric & Gas (NYSEG), and Rochester Gas & Electric (RG&E). All four are Investor Owned Utilities (IOUs).

Some towns and cities in New York also have access to municipal power. These publicly owned organizations aren’t subject to the same requirements as IOUs and can offer lower rates, but they typically don’t give you any benefits like net metering.

The electricity market in New York is deregulated. While you can’t choose your utility company, you can choose the company that supplies your electricity, which sometimes gives you room to save on your electric bills.

Plus, many New York cities and towns give you the chance to participate in Community Choice Aggregation (CCA) programs, which empower you to participate in a type of group-buying program on the deregulated market. Sometimes, you can secure lower rates than standard utility prices.

Best electricity rates in New York

Rochester Gas and Electric rates

Data last updated by our partner WattBuy on Aug 23, 2026

What makes up the cost of electricity in New York?

When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.

Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use).

Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update.

Your variable charges will change every month and depend on your electricity rate and how much electricity you use.

Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.

In New York, variable-rate plans, like time-of-use (TOU) rates, are widely available through utility companies and Retail Energy Providers (REPs). This means the rate per kWh of electricity changes based on the time of day and season.

How clean is the electricity in New York?

As of August 2025, the U.S. Energy Information Administration reports that approximately 26% of electricity on the utility grid in New York comes from renewable sources, and 20% comes from nuclear sources. But, 54% still comes from natural gas, so going solar will help you contribute to a cleaner environment.

In some cases, electricity suppliers allow you to pay a bit more, ensuring that most (or all) of your electricity comes from renewable sources. If you’re unable or unwilling to go solar in New York but still want to reduce your carbon footprint, this is a good alternative. You may not save any money, though, unless it's part of a municipal group-buy program.

How to lower your electric bills in New York

As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price.

Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.

Solar panels are a big investment, but New York homeowners who install them—and pay upfront—break even after an average of just 4.5 years. Then, the solar panels will continue to produce free electricity for years to come.

Does New York offer net metering?

When the sun is shining, your solar panels likely generate more than enough electricity for your home’s needs at any given moment.

But that extra energy doesn’t go to waste. In New York, the biggest utility companies—ComEd, National Grid, New York State Electric & Gas (NYSEG), and Rochester Gas & Electric (RG&E)—offer net metering, a solar buyback program that provides energy credits for all the solar power you send to the grid.

On cloudy days or nights when you need to use electricity from the grid, the utility company pulls from your banked credits. At the end of the month, you’re only billed for the extra electricity you pulled from the grid.

How much can you save with solar?

Electricity rates in the Empire State are considerably higher than the national average. Combined with the state’s attractive incentives, going solar in New York can lead to significant savings.

Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.

Electricity cost over time in New York

Assuming a 2% annual increase based on inflation and average annual electric rate increases in New York.

Let's assume you pay $259 for electricity monthly (the New York average) and that electricity prices increase by 2% annually. Let's also assume you buy your solar panel system upfront and that it costs you $29,100 before any available incentives.

In the first year with solar, you'll avoid spending $5,300 on electric bills. Over five years, you'll avoid $27,000; by 10 years, you'll have avoided $56,600. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $164,700 on electric bills in New York.

The average payback period in New York is 4.5 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $140,600 over 25 years with solar.

Your solar savings depend on you

How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system.

Here are some reasons your savings could be below average:

• You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.
• You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run.
• You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.