How Net Metering Works in New York (2026) | EnergyPros
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How net metering works in New York

What your exported power is actually worth in New York, how the credit is calculated, and what that means for sizing a system.

New York is moving from net metering to the Value Stack

Traditional net metering treats every exported kilowatt-hour the same. The Value Stack — VDER — does not. It prices exports by the value they deliver to the grid at that moment and location.

In practice exported credits typically cover 60 to 90 percent of the retail rate. A summer afternoon export earns near the top of that range; a winter morning export near the bottom.

Most residential customers still have traditional net metering as of 2026, but some utilities are moving faster than others. Ask which applies to your address before you sign.

The consequence is that self-consumption matters more in New York than in 1:1 states. A kilowatt-hour you use yourself avoids the full retail rate; one you export earns a fraction. That is a strong argument for pairing solar with storage here.

Sources: New York State Department of Public Service; NYS PSC VDER orders.

What net metering is not

Net metering is a billing arrangement, not a rebate. Nobody sends you a cheque. Your meter runs backward and your bill goes down.

It also does not eliminate your bill entirely. Fixed customer charges continue regardless of usage, and most utilities true up on an annual cycle rather than paying cash for a surplus.

Which is why system sizing matters: a system built well beyond your annual usage produces credits worth far less than the ones that offset what you actually consume.

The federal residential credit ended. Here is what that means.

The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy with cash or a loan in 2026, you cannot claim it. Any site still advertising a 30% federal credit for a homeowner purchase is running outdated information.

What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible.

EnergyPros does not provide tax advice — confirm your situation with a tax professional.

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Questions homeowners actually ask

Does net metering zero out my bill?

Not usually. Fixed customer charges continue regardless of how much power you generate, and most utilities settle any annual surplus at a rate well below retail. A well-sized system substantially reduces the bill; it rarely eliminates it.

How big a system should I get?

In most cases, one sized to your actual annual usage. Building well beyond that produces credits that are worth far less than the ones offsetting what you consume, because surplus is typically trued up at avoided cost rather than retail.

What happens to my credits if I move?

Net metering credits generally stay with the meter rather than the person. If you sell, the arrangement transfers with the property. If you are on a lease or PPA, that agreement transfers to the buyer — your installer handles the paperwork.

Does a battery change the net metering math?

It can, considerably — especially where exports are credited below retail. A battery lets you use your own production during expensive hours instead of exporting it cheaply. In states with 1:1 retail credit the case is weaker; in net billing states it is usually decisive.

New York solar guides