Net Metering in New York: How to Get Paid for Solar

Most people think about solar energy as a way to lower their electricity bill. That’s true, but did you know that your panels can actually earn you credits on that bill, too? When your system produces more electricity than your home uses at a given moment, that surplus flows back to the grid and gets credited to your account at the full retail rate.

Over the course of a year, those credits can help offset your electricity costs during months when your panels produce less. That mechanism is called net metering, and understanding how it works is essential to understanding the financial benefits for going solar in Upstate New York.

Key Takeaways

• New York has full retail net metering — every kilowatt-hour you export earns a credit at the same rate you pay for grid power.
• Credits roll over billing period to billing period — annual rollover treatment varies by utility, so confirm the specifics before installation.
• Battery storage and net metering work together — a battery maximizes on-site consumption while any remaining surplus still earns credits.
• The New York State 25% tax credit is available — up to $5,000 for qualified homeowners.

What Is Net Metering and How Does It Work?

Net metering is a billing arrangement between you and your utility company. When you install a grid-connected solar system, your home has two-way communication with the electric grid through a bidirectional meter. During the day, your panels generate electricity. That power goes to your home first — running your appliances, your HVAC, your lights. Anything your home doesn’t immediately consume gets pushed back out to the grid.

Here’s where net metering comes in: instead of simply giving that excess electricity away, your utility company credits your account for it. Here’s how the math works at the end of each billing period:

1. Your utility tallies how much electricity you consumed from the grid
2. It subtracts how much you sent back
3. You’re billed only for the difference

If you sent back more than you used, those extra credits carry forward into your next billing cycle.

Think of it like a bank account for electricity. You deposit surplus energy during sunny days and high-production periods, then draw it back down during evenings, cloudy stretches, or the shorter days of winter.

What Happens to Credits Over Time?

In New York, unused credits from one billing period roll over to the next. Annual rollover treatment varies by utility and the terms of your net metering agreement — for many systems installed after 2018, credits can carry forward for the duration of the 20-year term, but some utilities apply an annual true-up where remaining credits are paid out at a reduced rate. Confirm the specifics with your utility before installation.

Why New York’s Net Metering Is a Strong Deal

Not every state’s net metering program is created equal. Some states credit excess solar at a “avoided cost” or wholesale rate, which is significantly lower than what you pay for electricity. New York has retained full retail net metering, which means when your system sends a kilowatt-hour to the grid, you’re credited at the same rate you would have paid to consume that kilowatt-hour from the grid.

What Full Retail Rate Means

That’s a meaningful distinction. If you’re paying 20 cents per kWh to the utility, each kWh you export earns a 20-cent credit — not 4 cents, not 8 cents. Full retail credit maximizes the financial return of your solar system and shortens your payback period compared to states with weaker net metering policies.

What to Know About the CBC Charge

One recent change worth knowing: homeowners who install solar after January 1, 2022 pay a monthly Customer Benefit Contribution (CBC) charge — a cost-sharing mechanism designed to keep upgrades to the wider electrical grid stable as more households generate their own energy.

This monthly fee ranges from approximately $0.97 to $1.67 per kW of installed solar capacity, depending on your utility. The CBC is relatively modest, and for most homeowners it doesn’t significantly affect the overall economics — but it’s worth factoring into your calculations. New solar customers in New York enter a 20-year net metering term.

Reading tip: Head to our Why Solar page to learn more about the broader solar economics for Upstate NY homeowners.

Net Metering by Utility: NYSEG and Beyond

New York is served by several major investor-owned utilities, each running its own net metering program under the framework set by the New York Public Service Commission. The mechanics are consistent across utilities, but your specific rate and billing details depend on who serves your address.

NYSEG — New York State Electric & Gas

NYSEG is the primary utility serving much of Upstate New York, including the Greater Syracuse area, the Southern Tier, the Finger Lakes region, and the North Country. For homeowners in the Upstate NY market, NYSEG is the most commonly relevant utility. Under NYSEG’s net metering program, excess solar energy is credited at the full retail rate, credits roll over month to month, and the CBC charge applies for systems installed after January 2022.

Other Major New York Utilities

The same statewide net metering framework applies across New York’s other investor-owned utilities:

• Con Edison serves New York City and Westchester County. Full retail net metering applies with the same CBC charge structure — less relevant for Upstate customers but frequently searched.
• PSEG Long Island operates under an agreement with the Long Island Power Authority (LIPA) and offers full retail net metering, though Long Island operates under a slightly different regulatory structure than the rest of the state.

How Net Metering Works With Battery Storage

Adding a battery to your solar system — like a Tesla Powerwall, Enphase IQ Battery, or Franklin AP2 — changes how you interact with the grid, and it’s worth understanding how that interacts with net metering.

How Your System Manages Energy Through the Day

With battery storage, your system has a third option for surplus energy beyond sending it to the grid: storing it for later use in your own home. Here’s how the flow works:

• During the day, your panels charge the battery first.
• Excess energy beyond what the battery can hold gets exported to the grid and earns net metering credits.
• At night or during cloudy periods, your home draws from the battery before pulling from the grid.

Independence from the Grid

The result is that a battery-equipped system typically sends less energy to the grid than a solar-only system — because more of your production is being consumed on-site. That doesn’t mean net metering becomes less valuable; it means your battery is capturing value that would otherwise require grid interaction.

On-site energy storage can also add a level of security for homeowners concerned about weather-related power outages — keeping essential medical devices and refrigeration running when the grid goes down. Many homeowners find that storage and net metering work harmoniously to substantially reduce or eliminate their grid dependency.

Explore your battery storage options to see how different system sizes pair with solar in an Upstate NY climate.

What Net Metering Means for Your Payback Period and ROI

The financial case for solar rests on how quickly your system pays for itself — and net metering is one of the most important levers in that equation.

Because New York credits excess generation at full retail rates, homeowners with well-designed systems can offset a large portion of their annual electricity costs. In Upstate NY, where electricity rates are nearly double the national average, the value of each exported kilowatt-hour is correspondingly higher.

What Affects Your Payback Timeline

For a residential solar system in Upstate New York, typical payback periods vary depending on:

• System size and local electricity rates
• Roof orientation and shading
• How you finance the system

The incentives available to qualified homeowners can meaningfully accelerate that timeline:

• Net metering credits offset ongoing electricity costs from day one
• New York State 25% solar tax credit — up to $5,000, consult a tax professional
• NY-Sun incentives through NYSERDA provide additional upfront cost reduction

Systems are typically warrantied for 25 years, meaning the period after payback represents years of effectively free electricity.

The NY-Sun Incentive Program Through NYSERDA

New York’s primary statewide solar incentive program is NY-Sun, administered by NYSERDA — the New York State Energy Research and Development Authority. NY-Sun provides per-watt incentives for residential and commercial solar installations, and the program is designed to help make solar more accessible across the state.

How NY-Sun Works

• Access requires installation through a NYSERDA-approved contractor
• Incentive amounts vary depending on where you are in the state and current funding availability within your region’s program block
• Incentive levels have stepped down over time as solar adoption has increased — checking current availability matters

Stacking NY-Sun With Other Incentives

NY-Sun is separate from the New York State solar tax credit (25% of system cost, up to $5,000). Qualified homeowners may be able to stack multiple incentives to further reduce the net cost of going solar.

Frequently Asked Questions About Net Metering in New York

Does New York have net metering?

Yes — New York has full retail net metering, meaning excess power you send to the grid is credited at the full retail electricity rate. Credits roll over month to month and year to year with no hard annual reset. Homeowners who install after January 1, 2022 pay a modest monthly Customer Benefit Contribution charge, which varies by utility.

How much can I earn from net metering in New York?

It depends on your utility’s retail rate, how much excess energy your system produces, and your household consumption. In high-rate territories like NYSEG service areas, those credits carry real dollar value — a properly sized system can offset a substantial portion of annual electricity costs.

Does net metering work with a solar battery?

Yes, and the two work well together. A battery stores surplus energy for use at night or during outages, reducing what you export to the grid. Any excess beyond what the battery can absorb still earns net metering credits.

Which New York utilities offer net metering?

All major investor-owned utilities in New York offer net metering under the framework set by the state’s Public Service Commission. For Upstate NY homeowners, NYSEG is the most commonly relevant utility. Con Edison serves NYC and Westchester; PSEG Long Island serves Long Island under its agreement with LIPA.

Make the Most of New York’s Net Metering With a Custom Solar Quote

For New Yorkers, net metering only sweetens the deal of going solar. For Upstate NY homeowners, where electricity rates are high and rising, a well-designed system paired with New York’s full retail net metering program is a compelling financial case.

At New York Electric & Solar, we design systems sized to your actual energy usage and roof — not a one-size-fits-all spec — so you get the most out of every kilowatt your panels produce. No pressure, no jargon, just a clear picture of what solar looks like for your home.

See what net metering and solar could mean for your electricity bill. Request a free, no-obligation quote and get a custom estimate based on your home, your usage, and your utility.