Buying electricity is about to get even more expensive in New York. Electric companies RG&E and NYSEG are both seeking a significant rate increase in 2026.
If you live anywhere in New York, you’ve probably noticed your electric bill creeping up month after month, no matter how careful you are with your energy use. Unfortunately, this is only the beginning of a much bigger problem.
Earlier this year, RG&E announced plans to increase their delivery rates by 26%, while NYSEG also announced a 23.7% rate hike. The news hit hard for residents in their service areas, leaving many New Yorkers wondering… “when will it happen again?”
Between looming tariffs from Canada on electricity exports and surging demand from new energy-hungry industries, New York’s energy market is set to change drastically over just the next few years.
Why Are New York Rates Rising?
New Yorkers are facing pressure on both supply and delivery portions of their electric bills. Several factors are causing a “perfect storm” scenario for rapidly rising electricity prices.
New Demand from AI & Data Centers
AI models and data centers both consume massive amounts of energy. These operations have a high demand for electricity 24/7. In fact, some of these businesses use as much power annually as tens of thousands of homes.
As more tech companies expand into New York and nearby states, demand on the grid will continue to rise, which will inevitably lead to higher prices for everyone else.
All Time High Delivery Charges
At the same time, most of New York’s power grid is outdated and in need of serious upgrades. Utility companies are investing billions into replacing deteriorating poles, transformers, substations, and transmission lines.
These upgrades are necessary, but they are not free. And rather than absorbing those costs, utility companies are passing them along to the ratepayers in the form of sharply higher delivery charges.
What Happens to a $200 Electric Bill in a Few Years?
Let’s say your current monthly electric bill is around $200.
If energy prices continue to rise by 8% to 12% annually (as they have been), that same bill could look something like this in just five years:
- 2025: $200
- 2026: $220
- 2027: $242
- 2028: $266
- 2029: $293
- 2030: $322
And if you think that sounds unlikely, it’s already happened elsewhere. Just look at California.
California: A Glimpse Into the Future
California is years ahead of most states when it comes to utility infrastructure, energy policy, and technology adoption. But it also offers a warning about what happens when high demand meets aging infrastructure.
Between 2019 and 2023, electricity rates in California rose by nearly 70%.
Today, it’s not uncommon for average-sized households to see monthly bills over $500!
New York is following a similar trajectory: aging grid, increasing demand, and growing compliance costs. Unless something changes, the outcome will likely be the same.
How to Take Back Control
There’s no way to stop utility companies from raising their rates – it’s inevitable, but you can reduce your dependence on them.
When you produce all of your energy with solar, they can’t charge you for electricity. When you have solar panels, you lock in a fixed cost for your electricity and reduce your dependence on the grid.
As grid demand and energy prices rise, switching to solar becomes even more valuable. While utility customers keep paying more, Empire Solar customers watch their savings grow and not their bills.
If you’re a homeowner in New York, 2025 may be your last chance to claim federal and state solar incentives before they disappear. Combining these incentives can eliminate nearly 60% of the cost to go solar, and the average New Yorker is saving 40-60% every month compared to buying electricity.
Final Thoughts: Solar Beats the Rate Hikes
Electricity prices in New York are going up. That’s not a prediction, it’s already happening.
The most effective way to avoid rising energy prices altogether is by installing solar panels and locking in your energy cost for the long term. With increasing demand on our grid, homeowners are vulnerable not only to higher energy prices but also to unexpected blackouts. Solar helps you stay in control.
If solar has been on your radar, now is the best time to get a solar savings plan and find out exactly how much you can save each month by making the switch.
Want to see how low your electric bill could have been last month if you had solar? Request your FREE Savings Plan here →
