Study says solar, storage could slash spiking New York energy bills
A recent study by Synapse Energy Economics for the Coalition for Community Solar Access (CCSA) says that expanding solar and energy storage solutions could save New Yorkers up to $1 billion on utility bills by 2035.
The analysis, titled ‘Sunlight into Savings: Evaluating Energy Cost Savings from Distributed Solar and Storage Additions in New York,’ was released Jan. 14 and estimates that stronger solar and storage distribution across the Empire State could slash the average New Yorker’s residential electricity bill. With utility costs spiking in recent years, the study posits that prices could come down by $87 per year in upstate areas, and $46 per year closer to New York City.
These research findings come shortly after New York Gov. Kathy Hochul’s Jan. 13 State of the State address. During the speech, Hochul discussed making energy bills more affordable, and legislators have responded with the Accelerate Solar for Affordable Power (ASAP) Act, which the CCSA says is “designed to accelerate the deployment of distributed solar to meet rising electricity demand while protecting ratepayers from higher costs.”
“Solar energy is the cheapest form of energy to produce and a linchpin for affordability,” says New York State Senator and ASAP Act sponsor Pete Harckham. “This new study re-emphasizes the long-term, abiding value of renewable energy and storage systems in this regard. At this point, we should be exponentially increasing our clean energy efforts and gigawatt goals with distributed solar projects to create thousands of green jobs and save ratepayers millions of dollars.”
The state of New York has already surpassed its original targets for distributed solar, installing more than 7.3 GW by January 2026 and adding another 2.8 GW soon. Off the heels of such success, solar site developers and legislators have proposed expanding those goals up to 20 GW statewide in order to boost New York’s economy and energy reliability levels.
Changing energy needs
New York’s peak energy needs are shifting, the study says, as electrification of heating becomes more prevalent in the U.S. Right now, 56% of anticipated savings on utility bills are occurring between November and March, and that number isn’t expected to come down any time soon, according to the New York Independent System Operator (NYISO) grid monitor.
“NYISO has forecasted that New York’s hour of highest demand—its peak—will shift from the summer to the winter in the mid-2030s as electrification of heating increases,” the CCSA says. “Currently, New York relies heavily on natural-gas-fired power plants, which are subject to freezing and fuel availability constraints during extreme winter weather.”
Distributed solar and storage expansion could provide greatly valuable contributions to the electrical grid in the winter, according to the study. Modern battery and ESS products would help flatten the grid’s peak output, and can charge during periods of excess generation from the grid itself.
“Distributed solar and storage can provide substantial savings,” the CCSA says. “We find that incremental solar and storage can provide hundreds of millions of dollars in benefits in just one year, reducing customer bills in a way that is aligned with winter reliability needs.”
To electricity and beyond
The new study also gives updated information on natural gas consumption across New York, with the state currently looking for ways to avoid extra gas usage. The analysis states that expanding solar and storage options could help the state avoid up to 59 billion cubic feet of natural gas by 2035, good for about 11 percent of what it consumed throughout 2024.
“Without the addition of solar and storage, New York would have to depend on importing this fuel rather than generating electricity with in-state resources,” the study says. “Gas prices are also highly sensitive to market conditions and therefore subject to volatility. Solar energy can protect ratepayers from this volatility by reducing reliance on gas, particularly during times of high demand when gas prices spike.”
State Assemblymember and ASAP Act sponsor Didi Barrett says that thanks to “headwinds from the federal government,” New York must take initiative in expanding on its current renewable energy success.
“The ASAP Act is about scaling solutions that work for everyday New Yorkers,” says Barrett, “lowering electricity costs for consumers, supporting clean energy jobs, and meeting our climate goals.”
Alongside saving New Yorkers up to $1 billion on their utility bills, the report says that expanding solar capabilities could help save low-income customers an extra $235 million in additional savings. Further, the report says that solar solutions could help the state avoid about $947 million in greenhouse gas costs over the next decade.
“Distributed solar and storage deliver value on multiple fronts at once—lower bills, stronger reliability, and reduced exposure to volatile gas markets,” says Kate Daniel, Northeast regional director at the CCSA. “This study shows that smart policy choices can unlock real savings for all customers, not just those who install solar on their rooftops. The ASAP Act is an opportunity to build on New York’s leadership and scale solutions that are already working.”
