Con Edison, a major utility company serving New York City and Westchester County, has proposed substantial electricity rate increases set to take effect on January 1, 2026. The proposed Con Edison electricity rates would result in an 11.4% increase in the average electricity bill.
If approved, a homeowner whose current average bill is $200 would see their electricity costs rise by $23 per month or nearly $275 per year. That’s in addition to the 13.3% proposed increase to the average Con Edison gas bill.
With Con Edison electricity rates much higher than the national average — and rising sharply in 2026 — many New Yorkers are in a position to see significant savings by going solar. With the fate of the 30% federal solar tax credit uncertain beyond 2025, now is the best time to lock in a low, flat cost for solar power.
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Why Is My ConEd Bill So High?
ConEd electricity bills fluctuate throughout the year based on weather, electricity usage, and market conditions. For instance, bills tend to be higher in the summer due to power-hungry air conditioners and in the winter when the price of natural gas (used to generate most of NY’s electricity) increases.
There’s also a general trend of Con Edison electricity rates rising over time. A customer with an average bill of $175 per month in 2022 would pay $225 per month in 2026, if the proposed rate hikes are approved. That’s $50 more per month or $600 more per year for using the same amount of electricity.
The rationale behind these 2026 increases is to fund $1.6 billion in investments in clean energy initiatives, infrastructure upgrades, and expanded support for low-income customers. However, these added costs place a significant burden on households already managing tight budgets.
How Rooftop Solar in NY Can Lower Your Energy Costs
Investing in rooftop solar panels gives you control over your electricity cost by replacing your Con Edison electricity bill with a flat payment for solar that won’t rise over time. This can lead to substantial savings — especially with New York’s favorable incentives and solar policies.
The NY State solar tax credit, worth 25% of your project costs up to $5,000
The Federal Solar Tax Credit, worth 30% of your project cost
The NY-Sun solar rebate, currently worth $150 per kW of solar capacity for Con Edison customers
Sales tax exemption for solar purchases
Property tax abatement for homes with solar in NYC
Plus, New York offers 1 to 1 net metering, which means you can sell your excess solar electricity back to Con Edison at the same rate you purchase grid electricity. With net metering, you can easily offset nearly 100% of your Con Edison electric bill, with the exception of around $20 in non-bypassable charges and fees.
How Much Can Con Edison Customers Save With Solar?
Let’s say your Con Edison electricity bill is currently $200 per month, on average. If Con Edison electricity rates rise at 3% per year, you’d pay over $81,000 for electricity over the next 25 years (assuming your usage stays the same).
How does that compare to solar?
The cost of a solar system to offset a $200 Con Edison bill is typically between $23,000 and $27,000
This system would qualify for $12,500-$13,700 in state and federal incentives
Instead of paying $81,000 to Con Edison, you could pay $10,500-$13,300 for a solar system with a 25-year performance warranty.
With high (and rising) electricity rates and great incentives, Con Edison customers have a golden opportunity to save money with rooftop solar. Don’t wait for the 2026 rate hike to kick in—get custom solar proposals on solar.com to see your savings potential.
Update: Due to rising utility rates, the SMART incentive for solar-only systems is $0/kWh in all MA territories. However, there is still value in the SMART incentive for solar systems paired with battery storage.
In 2018, the Massachusetts Department of Energy Resources and the state’s three largest utilities launched the Solar Massachusetts Renewable Target (SMART) Program to encourage further rooftop solar installations after the extremely successful SREC II program closed.
Through the MA SMART solar program, the state’s three investor-owned utilities compensate solar owners for the electricity their systems produce. The program is one of several solar incentives available in Massachusetts that reduces the cost — and increases the savings — of installing a home solar system.
After early success, the SMART solar program doubled in size from 1,600 to 3,200 MW of capacity, thereby extending this incentive to many more homeowners.
In this article, we’ll explore how the SMART solar program works, the current incentive levels, and how to apply.
Under the SMART Program, the state’s three investor-owned utilities, National Grid, Eversource, and Unitil, directly compensate participating solar system owners for their solar power generation.
Compensation is paid out on a monthly basis via mail or direct bank deposit for 10 years. The compensation rate (how much each kilowatt-hour of solar electricity is worth) is determined at the time a participant enrolls, and is locked for the 10-year duration of the program.
The program features a declining block structure, which means incentive levels were greatest when the program first opened and have been declining since. SMART participation is capped statewide at 3,200 MW in incentivized solar projects. Each utility supports a percentage of the program proportionate to the amount of electricity they distribute in the state.
Massachusetts solar owners can participate in both net metering and SMART. However, SMART only applies to the value of solar electricity after net metering is applied. (We’ll show how this works below).
Unlike the SREC II program, which featured variable incentive levels based on market conditions, SMART participants lock in a flat rate for their solar production for 10 years. Here’s the basic formula for SMART program incentive rates:
Base compensation rate + Adder(s) – Value of Energy = SMART incentive rate
Let’s explore the elements of this equation to better understand how to calculate your SMART incentive rate.
Base compensation rate is the initial incentive value based on which block the program is in
Adders are ways to increase your base compensation rate. For homeowners, this means adding battery storage to your solar system.
Value of Energy is your utility rate at the time you enroll in SMART
SMART incentive rate is the rate at which you’ll be compensated for your solar production
Each utility provider has a set amount of solar capacity it can enroll in the Massachusetts SMART solar program, and this capacity is divided into blocks. As the program progresses through each block, the incentive level declines by four percent. Meanwhile, the value of energy (your utility rate) increases, further reducing the true incentive rate.
The table below shows a snapshot of SMART incentive rates for solar-only systems in 2025.
*Blocks and compensation rates are accurate via mass.gov as of March 2025. Data is subject to change as blocks progress and the value of energy changes.
So, SMART is no longer valuable as a solar incentive — but there is still value as a battery incentive.
(And remember, both solar and battery qualify for a 30% federal tax credit, and Massachusetts offers a solar tax credit worth up to $1,000).
Let’s see how adding battery storage to your project changes the equation.
SMART battery adder
Let’s say you install an 8 kW solar system in Massachusetts. With no battery, your SMART incentive would be zero. But with an average-sized battery (10 kWh), you’re SMART incentive would jump to $0.0487 per kWh of solar production.
So, if that solar system produces 10,000 kWh per year, you’d earn $487 per year through SMART. Over the 10-year program, your incentive payments would add up to $4,870.
In addition to boosting your SMART incentive, your battery can provide backup power during grid outages and allow you to store and use your own clean solar energy instead of pulling from a grid that relies heavily on gas-fired power plants.
At this point, SMART is basically a battery incentive — and one well worth claiming if you are interested in backup power, energy independence, and using your own clean solar electricity.
Solar systems that are less than 25 kW and interconnected to one of the three investor-owned utilities are invited to complete the SMART Statement of Qualification Application on the SMART Program website.
Here’s how to apply for SMART:
Sign your solar agreement with your solar installer
Your installer will apply on the PowerClerk system
SMART Program representatives will provide a Preliminary Statement of Qualification for the incentive
Your installer will install and obtain interconnection to the grid for your system
Your installer will submit the incentive claim online for your project
SMART Program representatives will provide a final statement of qualification
Your utility will begin incentive payments to you through the same structure as your net metering crediting system
For more information, be sure to reference the official program resources, such as the Massachusetts SMART Program Application Requirements Checklist. There is no official deadline for this program as the closure is based on when all available blocks have been filled.
Is home solar still worth it in Massachusetts with low SMART program incentive levels?
There’s no question that the MA SMART solar program incentive levels aren’t as attractive in 2025 as they were in the past. So, is going solar still worth it in Massachusetts?
The answer is a resounding yes.
Massachusetts has other solar incentives that can reduce the cost of going solar and the state boasts the fourth-highest electricity prices in the nation. So, even without the SMART incentive, Bay Staters can substantially reduce their electricity costs and carbon footprint by installing a home solar system.
Through the SMART program, Massachusetts’ three investor-owned utilites (Eversource, National Grid, and Unitil) compensate program participants for their solar production on a monthly basis for 10 years. A flat compensation rate is locked-in when the ratepayer signs up for SMART. Compensation rates depend on the solar owner’s utility service area, which block the incentive program is in, and electricity prices.
How is Massachusetts SMART program incentive paid?
According to Eversource, SMART incentive payments are distributed by mail or direct deposit on a monthly basis. Payments for systems under 25 kW (a vast majority of residential system) last for 10 years.
How do I calculate Massachusetts SMART program incentives?
The basic formula for calculating your SMART solar incentive level is: Base compensation rate + Adder(s) – Value of Energy = SMART incentive rate
SMART solar program incentives level are constantly changing based on the block and the value of energy. So, the easiest way to calculate your current incentive level is using the BTM Value of Energy Workbook found on this Mass.gov webpage. The workbook has an incentive calculator that you can plug your information into to find your compensation rate.
