New York net metering 2026: how Con Ed, National Grid, and PSEG LI credit your solar
New York has multiple utilities with different net metering structures. Con Ed and National Grid offer full retail-rate credits. PSEG Long Island operates under VDER. Here is exactly what each means for your solar payback.
Net metering in New York is not one uniform policy — it varies significantly by utility, and the distinction between mainland net metering and Long Island's VDER tariff is important for any Long Island homeowner evaluating solar. This guide covers what each major New York utility offers, how credits are calculated and billed, and what the VDER-versus-net-metering distinction means for your system's financial return.
Con Edison: NYC and Westchester net metering
Consolidated Edison serves New York City and Westchester County, covering the vast majority of the state's densest solar market. Con Edison offers full retail-rate net metering for residential solar owners: excess generation earns bill credits at the retail rate, which in the Con Edison territory runs approximately $0.28 to $0.34/kWh in 2026 depending on rate class (Con Edison rates are among the highest in the US for mainland utilities). Monthly credits roll forward; annual surplus credits may be compensated at a lower avoided-cost rate. The high Con Edison retail rate makes net metering particularly valuable in NYC and Westchester, shortening payback compared to upstate NY utilities.
National Grid: upstate New York net metering
National Grid serves a large portion of upstate New York, including the Buffalo, Syracuse, and Capital District metropolitan areas. National Grid offers full retail-rate net metering consistent with NY state law. Upstate NY retail rates run approximately $0.22 to $0.26/kWh, somewhat lower than Con Edison rates. National Grid's interconnection process for residential systems follows NY's streamlined residential interconnection track; your installer handles the application. Interconnection timelines: typically 6 to 10 weeks.
PSEG Long Island: the VDER difference
PSEG Long Island (which operates under a contract with the Long Island Power Authority, or LIPA) does not use standard retail-rate net metering for new solar applicants. Instead, Long Island solar owners receive credits under the Value of Distributed Energy Resources (VDER) tariff, which calculates the credit based on a formula that includes the energy value, capacity value, environmental value, and local system value of each kilowatt-hour exported. VDER credit rates change quarterly and are set by the Public Service Commission. In recent years, VDER credits for residential solar have typically been lower than the retail rates offered in mainland NY territories, which extends Long Island payback periods somewhat compared to what retail-rate net metering would produce. New Long Island homeowners going solar in 2026 should ask their installer for the current VDER credit rate and compare it to their PSEG retail rate to understand the export credit value.
Importantly, VDER is not worthless — Long Island has excellent sun resources (4.5 to 4.8 peak hours daily) and PSEG rates are relatively high. Solar still makes strong financial sense on Long Island; VDER just changes the specific credit math versus retail-rate metering.
Other New York utilities
Central Hudson Gas & Electric serves the Hudson Valley (Poughkeepsie, Kingston, Newburgh areas). Full retail-rate net metering applies. Central Hudson retail rates: approximately $0.22 to $0.28/kWh.
New York State Electric & Gas (NYSEG) serves the Southern Tier and parts of central and western NY (including Binghamton, Ithaca, and surrounding areas). Full retail-rate net metering. Rates similar to National Grid.
Rochester Gas and Electric (RG&E) serves the Rochester metropolitan area. Full retail-rate net metering. An Avangrid company with streamlined interconnection processes.
Orange & Rockland Utilities serves Rockland and Orange counties. Full retail-rate net metering. O&R customers in Rockland County have relatively high electricity rates, making solar and net metering particularly valuable there.