Despite a key federal solar tax credit expiring, residential solar continues to offer homeowners’ dependable savings. Thanks to progressive state and city policies, combined with fundamental economic benefits, solar remains the most effective financial defense for New York households.
New Yorkers will see utility rates increase in the near future due to widespread infrastructure upgrades and surging electricity demand associated with increased electrification and the buildout of cloud infrastructure. Residential electricity prices in New York City have risen nearly 26% between December 2020 and December 2025. And following the latest Public Service Commission settlement, Con Edison customers are facing a three-year ladder of approved rate hikes: roughly 3.5% in 2026, followed by another 3.2% and 3.1% through 2028. This trend is expected to accelerate; the New York Independent System Operator (NYISO) projects annual electricity usage will climb by more than 16% over the coming decade and generating capacity struggles to keep pace with skyrocketing demand, driving costs. Based on an average of a 3% rate increase per year, electricity rates are expected to rise by 30% in the next decade.
Solar is the most effective financial defensive mechanism homeowners and building owners can employ to combat rising energy costs. By generating and supplying power onsite, solar guarantees a cheap supply of electricity, reducing the amount of grid-supplied electricity needed. The cost of solar energy is determined by the cost of the system spread across the system’s guaranteed 30-year lifespan; on average, solar cost averages out to be $0.14/ kwh. This “locked-in rate” offers protection from Con Ed rate volatility, providing solar customers with predictable, reduced costs. And as rates increase, the savings potential of solar increases…