Adding solar panels and switching rate plans can lower your New York State Electric & Gas (NYSEG) electric bill
Updated: October 22, 2020There are three ways you can reduce your NYSEG bill: changing your habits, switching your rate plan, and adding solar panels.
You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.
The second thing you can do is switch your rate plan. NYSEG doesn't offer time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, but there may be other options for you .
Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.
On this page:
Solar panel cost calculator
How much can I reduce my New York State Electric & Gas (NYSEG) bill by switching to a different rate plan
For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to New York State Electric & Gas (NYSEG) each year for no reason.
Finding out what's available to you is as simple as a phone call or email to New York State Electric & Gas (NYSEG). Even a small savings can be worth it.
Are solar panels worth it for New York State Electric & Gas (NYSEG) customers?
Yes! With a 25% New York state tax credit for solar, available sales and property tax exemptions, solar panels make a lot of sense for New York State Electric & Gas customers. NYSEG’s net metering policy also ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.
Does New York State Electric & Gas (NYSEG) offer full 1 for 1 net metering credits for exported solar power
Yes, New York State Electric & Gas (NYSEG) offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid.
In the case of New York State Electric & Gas (NYSEG), this is approximately $0.19 per kWh.
If you have excess energy credits after offsetting your usage over the course of a year, NYSEG will pay you out for those credits at a lower "avoided cost rate". After that, the amount of excess energy in your account will be reset to zero.
What incentives, tax credits and rebates are available to NYSEG customers for installing solar?
The major financial incentive currently available until the end of 2023 is the 30% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.
Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.
Here is every incentive you may be eligible for as a NYSEG customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$5,654 |
|
Solar Sales Tax Exemption
(State)
Exemption of New York state sales tax on retail sale and installation of residential solar systems. |
Varies |
|
Value of Distributed Energy Resources - Phase One Net Metering
(State)
Systems installed between March 9, 2019 and January 1, 2020 receive volumetric credits for kWh their system exports to the grid. After January 1, 2020, Phase One Value stack Tariff starts, receive monetary credit on bill not kWh credits. |
Varies |
|
NY-Sun Smart Energy Loan
(State)
Loan amounts available between $1,500 and $25,000 repaid directly to NYSERDA's loan server. |
Varies |
| Residential Solar State Tax Credit (State) | -$5,000 |
|
NYSERDA Retail Energy Storage Incentive Program
(State)
$250/kWh of storage |
Varies |
|
Net Metering
(State)
"Current net metering continues until 2022, at which time new customers will begin paying a small ""Customer Benefits Charge"" on every monthly bill." |
Varies |
|
NY-Sun Affordable Solar Program
(State)
Additional funding of $800/kW for homeowners at 80% or less of area median income. Also includes solar loans with on-bill repayment options. |
Varies |
|
Property Tax Exemption
(State)
100% of cost of system is exempt from property tax for 15 years. Local entities can disallow the exemption through implementing policy. |
Varies |
|
NY-Sun Megawatt Block Program - Upstate Region - Block 9
(Utility)
As of February 2022, at block 9 - $.50/W. |
-$4,638 |
| TOTAL | -$15,291 |
*Based on 9.28 kW system, average installation cost $28,484
How much does installing solar panels save the average New York State Electric & Gas (NYSEG) residential customer?
If you input the details for a NYSEG customer with a power bill of $130 per month into the best online solar panels calculator, it tells you that you need a 9.28 kW solar system that will produce 11,433 kWh per year and that this system will return the owner a $28,405 profit after repaying the cost of the system.
The solar savings possible for you as a NYSEG customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical NYSEG customer with a $130 per month electric bill prior to solar and who installs a 9.28 kW solar system.
How much do residential solar panels cost for NYSEG customers?
Showing data for:
Prices based on a 10.4kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$27,187-$33,229
Payback period
8.1-9.9 years
Recommended size for the selected utility bill
10.4kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 9.28 kW |
|
Annual Power Generation 11,433 kWh |
|
Pay-back time (assuming Cash purchase) 9.7 Years |
|
Internal Rate of Return (IRR) on Investment 5.6% |
|
Gross cost $28,484 |
|
Total Upfront Incentives and Rebates -$16,115 |
|
Net Cost of System after rebates and incentives $12,367 |
|
Total Cost of Utility Power Avoided over 25 years $40,772 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of New York State Electric & Gas (NYSEG) customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a New York State Electric & Gas (NYSEG) customer installing a 9.28 kW solar system on their property:
A solar system generating 11,433 kWh per year will save you money AND make the world a nicer place
Saves you
$1,136
on average per year
Reduces CO2 emissions
5.66
tons per year
Equivalent to planting
40 trees
per year
Equivalent to driving
12,520 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for New York State Electric & Gas (NYSEG) customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $3.07 per watt or $12,367 for a standard 9.28 kW solar system after the customer claims the 30% federal solar tax credit.