It's no secret that the cost of electricity has increased in recent years. Nearly 78% of Americans are stressed about rising home energy costs, according to a recent CNET survey.
The average electric bill in New York is actually lower than the nationwide average, despite New Yorkers being charged about 50% more per kilowatt-hour for electricity. Because New York electric rates are among the highest in the nation, it's worth looking for ways to save. New York is also one of the few states in the US that give you a choice on where you get your electricity from. Shopping around for a new supplier could be worth the effort.
Here's how you can lower your electric bill, as well as some tips for choosing the right electric supplier in New York.
We'll help you find the best electricity rates in your area
Advertiser disclosure
This advertisement widget will direct you to www.chooseenergy.com. You will not be charged for engaging with this advertisement. While we strive to provide a wide range of offers, this advertising widget may not include information about every product or service that may be available to you. We make reasonable efforts to ensure that information from this advertisement widget is up to date. It is possible that the offer terms from this advertising widget and the advertised offers may be subject to additional terms and conditions of the advertiser which will be presented to you prior to making a purchase. All information is presented without any warranty or guarantee to you.
with our partner Choose Energy
Advertiser disclosure
In terms of the average price per kilowatt-hour, electricity costs in New York are the ninth-highest in the nation. However, when ranked by the average electric bill, New York comes in 25th nationwide, according to the Energy Information Administration. This is largely a function of higher electric rates coupled with significantly lower usage than the national average.
New York is also one of 18 states in the US with a deregulated electricity market, allowing you to choose your electric provider instead of just going with the one that services your area. But deregulated energy works a little differently in New York versus other states, which can make it challenging for residents to know if they're getting the best deal.
We'll help you find the best electricity rates in your area
Advertiser disclosure
This advertisement widget will direct you to www.chooseenergy.com. You will not be charged for engaging with this advertisement. While we strive to provide a wide range of offers, this advertising widget may not include information about every product or service that may be available to you. We make reasonable efforts to ensure that information from this advertisement widget is up to date. It is possible that the offer terms from this advertising widget and the advertised offers may be subject to additional terms and conditions of the advertiser which will be presented to you prior to making a purchase. All information is presented without any warranty or guarantee to you.
with our partner Choose Energy
Advertiser disclosure
In other deregulated states, the utility rate -- otherwise known as the default rate -- is approved and set by regulators months in advance, giving you a benchmark price to compare against other competing suppliers.
But New York operates a little differently, said Andrew Meyer, CEO of Arbor, a home energy platform that helps residential utility customers find the lowest rates. Because default utility rates in New York aren't set in advance but purchased from the wholesale energy market in real time, it makes it difficult for the consumer to keep track.
"On one hand, that sounds good, because they're not marking it up at all," says Meyer. "However, that pricing is very volatile, especially on a seasonal basis."
For example, Meyer notes the default rate for electricity from Con Edison increased by 70% between the fall of 2023 and the winter of 2024 due to seasonal shifts in energy prices.
"That shows the variability and volatility of energy rates in New York. That's very different from other places where it's set in advance and fixed for some period of time," he says.
The table below shows the average electric bill in New York in 2022. However, it's important to note that these are wholesale rates -- the rate your utility buys the electricity you're using from the supplier. Your electric bill will also include costs for transmission and delivery, which is what you pay your utility for bringing the electricity to your home, and other associated costs of maintaining the grid.
Average electric bill in New York vs. the US
| Average electricity price (in cents per kilowatt-hour) | Average monthly usage (kWh) | Average electric bill | |
|---|---|---|---|
| New York | 22.08 | 592 | $130.81 |
| United States | 15.04 | 899 | $135.25 |
Shopping for electricity in New York
Finding the right electric plan can be a difficult process to navigate, but could find you cheaper rates. Make sure you read and understand the electricity facts label (EFL) for any plan you're interested in. The EFL should disclose the fees and charges associated with the plan, and the terms and conditions.
Pay particular attention to the plan's electric rate, transmission and distribution utility charges, and any fees you might be charged for terminating your contract earlier than expected. Check suppliers on the New York Department of Public Service website to make sure the companies are legitimate.
You could choose to purchase electricity from your utility at the default rate, but that might not always be the best option. The default utility rate isn't fixed or steady. It will vary and change quite often.
"If you do nothing and you're just buying the default [rate], you're exposing yourself to a lot of volatility, especially in the winter months," Meyer says. That's because volatility in rates doesn't always equal paying more overall. After looking back over a 12-month period, sometimes seasonal lows outweigh seasonal highs. "You may end up paying less over the course of a year," he says.
If it's predictability you want, choosing a long-term fixed-rate might be the best option for you, even if it's not the cheapest. There are competitive energy rates available, so you could find a fixed rate that's guaranteed for six months or even 12 months to protect yourself from some of that volatility, says Meyer. Just keep in mind that those fixed rates could be higher.
Getting solar panels in New York
Adding solar panels to your home can be a great way to lower your electric bills. In fact, 20% of New York's electricity is generated from solar. But going solar can get very expensive, with the average cost of a solar panel system in New York being around $20,000.
Thankfully, there are state-level renewable energy incentives that you can take advantage of. The New York Solar Energy System Equipment Credit, for example, can lower your state income tax bill by 25%, up to $5,000. New York also offers solar incentives for low-income households. These incentives can be coupled with the federal solar tax credit, allowing you to recoup up to 30% of the total cost of your solar panel system on your federal taxes. Additional tax credits and rebates offered through the Inflation Reduction Act can help you save big on energy efficiency upgrades for your home.
Even renters (or homeowners who aren't able to install solar panels) can still power their homes with renewable energy. Subscribing to a local community solar project allows you to power your home with solar energy generated from a nearby solar farm. Community solar rates are often cheaper than what your local utility charges for electricity.
"You're buying local renewable energy, and you're actually guaranteed to save money," Meyer says. "You don't have to change your behavior or upgrade your home. You're just making a decision to buy energy in a new way that reduces your cost."
Electric bill assistance in New York
Eligible households may qualify for programs through the New York State Office of Temporary and Disability Assistance to help pay utility bills or upgrade household heating and cooling equipment to more energy-efficient appliances.
You can also reach out to the New York State Energy Research and Development Authority, which offers programs to support home energy assessments and energy-efficient upgrades like insulation, EnergyStar appliances and replacing outdated HVAC systems with heat pumps.
- Energy Affordability Programs (EAP):Your utility may offer a bill payment assistance program for low-income households. Contact your utility to see if you qualify.
- Home Energy Assistance Program (HEAP): Eligible households can receive an annual benefit to help pay bills associated with heating costs.
- Heating Equipment Repair or Replacement Benefit (HERR):This program helps eligible homeowners repair or replace necessary HVAC equipment like boilers and furnaces.
- Clean and Tune Benefit: Eligible households can receive services that assist with the cleaning and tuning of primary heating equipment. Safety and efficiency upgrades like programmable thermostats may also be available.
- Cooling Assistance Benefit: This program covers costs associated with the purchase and installation of an air conditioner or fan for eligible households.
Energy-saving tips for New Yorkers
The easiest way to lower your electric bill is to lower the amount of energy you use on a monthly basis. In fact, 70% of Americans say they are taking steps to reduce the amount of energy they use, according to a CNET survey.
This could mean investing in larger energy efficiency upgrades for your home, like installing solar panels or upgrading your HVAC system. Or it could be something as simple as setting your thermostat to the right temperature or unplugging certain electronics when you're not currently using them. Here are a few simple strategies you can try to lower your energy usage.
Use LED bulbs
One of the easiest ways to cut your electric bill is to upgrade all the light bulbs in your home to LEDs. And while LED bulbs cost more than incandescent or fluorescent bulbs, you'll still see savings in the long run. LED bulbs use up to 90% less energy and last 25 times longer than incandescent bulbs, according to the Department of Energy.
Consider a smart thermostat
If your HVAC system is compatible, replacing your current thermostat with a smart thermostat is a great way to more efficiently heat and cool your home. These wifi-enabled devices can be programmed easily from a smartphone app and can even learn your habits to know when to turn on and off.
Check time-of-use rates
Some electric utilities charge more for electricity during certain times of day when the demand for electricity is at its highest. These rates are called time-of-use rates. You'll typically be charged more for your energy use during mornings and evenings, but it can vary by utility. Changing when you run the dishwasher or do your laundry (or perform any energy-intensive tasks in general) can help you avoid being charged more for electricity. Check with your utility to see if they charge TOU rates.
Make small changes
Even the slightest adjustments to your routine can help lower the amount of energy you use -- like always running your dishwasher when it's fully loaded, washing clothes with cold water, dimming lights or using smart plugs. Performing several of these actions together can add up to significant savings. You can also try these 23 fast and easy ways to save on your electric bills.