If your electric bill has been climbing higher – or even doubled in cost – you’re not alone. New Yorkers are paying some of the highest electricity rates in the country, and major utility providers have announced even more increases this year and beyond. As energy costs continue to rise, there are steps you can take to reduce dependence on the grid, cut costs, and take control of your energy use.
Why Are Utility Costs Rising?
Recent rises in utility costs stem from a multitude of reasons:
- Canadian tariffs increasing costs of imported electricity
- Necessary upgrades and updates to utility infrastructures
- Constantly growing energy demands
- Increased investment in clean energy as a result of State and Federal policies
- And more…
New Canadian tariffs just hit New York electricity markets, spiking wholesale prices. Both residents and businesses should expect a 15-20%+ rise in costs over the next few months from market uncertainty, tariffs and more (8). New York State, and the U.S. as a whole import a portion of its electricity from Canada, meaning these tariffs will cause immediate price increases – which will ultimately be paid by consumers.
Read more about how tariffs impact utility costs: “Trump Solar Tariffs & Soaring Utility Rates: Why Go Solar in New York Now?”
Infrastructure updates and upgrades are one of the most common reasons for increased prices. New York’s power grid can be outdated and expensive to maintain, pushing utilities to invest in upgrades – and then passing these costs onto customers. As more people switch to electric heating and EVs, a constantly growing energy demand puts the grid under strain, requiring expensive expansions to safely deliver growing energy needs. New and growing technologies, such as AI data centers, also draw extensive power to run, increasing demand again.
Extreme temperatures are also a factor in seasonal increases in your energy bills. Recent winter temperatures have dropped colder than previous years, bringing high heating bills this season (5). It’s not just winter weather that brings skyrocketing costs – high costs of AC in extreme summer heat will also increase bills. State and Federal policy changes surrounding clean energy require utilities to invest in renewable energy and reduce their fossil fuel use.
A message from Steve Kasselman:
“As CEO of Kasselman Solar, it is my duty to inform and support you through these unprecedented energy market conditions. Recent tariff-driven increases have further elevated already historically high electricity bills. We understand the financial strain this causes and have proactively secured resources to provide you with immediate financial relief.”
Coming Utility Rate Hikes: What to Expect
Utility costs have been increasing for years, but 2025 and beyond could bring some of the steepest hikes in years. For many households, this means paying hundreds – if not thousands – more each year on electricity bills, making it essential to find ways to reduce energy use and secure long-term savings.
- Central Hudson: Proposing a 4.6% rate increase for electricity rates and 5.8% increase for natural gas beginning summer 2025 (3).
- Con Edison: Proposing an 11.4% increase in electric rates and a 13.3% increase in gas rates by 2026 (4).
- National Grid: Seeking double-digit rate hikes, which could add nearly $20 per month to the average electric bill (5).
- NYSEG & RG&E: Customers are locked into a 22% increase over three years (6).
- Orange & Rockland: Proposed a 28% increase in electric rates and a 22% increase in gas rates over the next three years (7).
Why Act Now -
How Solar Helps You Save
Solar is one of the most impactful ways that you can combat rising utility costs.
Solar allows homeowners and business owners to generate their own electricity, reducing dependence on utility companies and saving you money on energy bills!
Lower Energy Bills
When you generate your own power, you can drastically cut your electricity expenses. And this is a benefit you will be able to see as soon as your system is up and generating power that first month!
Protection from Future Increases
Once installed, solar provides a stable, predictable energy cost for decades! Possible rate increases are one of the greatest concerns for many individuals when thinking of utility costs. Changing monthly bills depending on a variety of factors make it difficult to predict a consistent spend – and it’s almost a guarantee that costs will grow over time.
Save with Government Incentives and Rebates
There are many ways to significantly decrease the upfront cost of going solar. Between Federal and State incentives, rebates and tax credits, you can save thousands! These incentives won’t be around forever. Incentives and rebates are available on a first-come first-served basis, meaning the sooner you act, the greater savings available.
NYSERDA’s current incentive block is dropping in the coming weeks, meaning you need to act now to claim the current incentive level and maximize savings.
- https://www.energysage.com/local-data/electricity-cost/ny/
- https://www.cnet.com/home/energy-and-utilities/electricity-rates-by-state/
- https://www.cenhud.com/en/account-resources/rates/rate-plan-proposal/
- https://www.cbsnews.com/newyork/news/con-edison-rate-hikes-proposal-aarp-new-york/
- https://spectrumlocalnews.com/nys/central-ny/news/2024/05/29/national-grid-proposes-one-year-price-hike-for-electric-and-gas
- https://smartenergychoices.org/our-blog/2024/1/25/nyseg-rate-hikes-on-gas-amp-electricity#:~:text=Under%20the%20three%2Dyear%20agreement,another%20%2411%20starting%20May%202025.
- https://dps.ny.gov/pending-and-recent-electric-rate-cases
- https://www.reuters.com/business/energy/trumps-tariffs-canada-could-make-us-power-bills-even-pricier-2025-03-05/?utm_source=chatgpt.com
Published: 3/7/2025
Ava Clemenzi
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