Study says solar, storage could slash spiking New York energy bills
Study says solar, storage could slash spiking New York energy bills - A new Synapse Energy Economics study finds that expanding distributed solar paired with battery storage could save New Yorkers up to $1 billion per year by 2035. The analysis highlights how local solar and storage can cut bills, ease winter peak stress, and reduce reliance on natural gas as electrification accelerates.
Good news, Thursday.
A new study from New York adds an important data point to the conversation about energy costs, reliability, and how states manage rising demand.
According to analysis by Synapse Energy Economics for the Coalition for Community Solar Access, expanding distributed solar paired with battery storage could save New Yorkers up to $1 billion per year on electricity bills by 2035. Those savings come from a scenario where distributed solar grows toward roughly 20 GW statewide, alongside additional storage capacity.
On a household level, the study estimates average annual savings of about $46 for customers in the New York City area and $87 for upstate households. While downstate electricity prices are higher overall, the larger savings upstate reflect how congestion, avoided transmission upgrades, and local grid constraints translate more directly into bill reductions.
What makes these savings especially notable is when they show up. More than half are projected to occur during winter months, as New York’s peak demand shifts from summer to winter with the electrification of heating.
Winter peaks are different. They are sharper, more correlated across regions, and arrive when fuel systems are already under strain. During cold weather, the grid leans heavily on natural gas power plants at the same time homes and businesses need gas for heating. That overlap can tighten supply, drive price spikes, and raise reliability risks, regardless of whether more solar or storage is added. This is why winter planning is quickly becoming the hardest challenge facing New York’s energy system.
Distributed solar on its own does not solve winter peaks. But solar paired with storage changes the equation. Batteries can charge from multiple sources, including excess grid generation, and discharge during peak hours when gas is most constrained and expensive. The study estimates this approach could help New York avoid about 59 billion cubic feet of natural gas by 2035. For context, the state used roughly 540 billion cubic feet of natural gas for electricity generation in 2024, meaning distributed solar and storage could offset about one-tenth of that demand.
New York has already surpassed its original distributed solar targets, with more than 7.3 GW installed and another 2.8 GW in late-stage development or interconnection as of early 2026. Lawmakers are now debating whether to raise the statewide goal to 20 GW, alongside legislation like the Accelerate Solar for Affordable Power (ASAP) Act, aimed at scaling deployment while protecting ratepayers.
Taken together, the study highlights how solar and storage are no longer just about clean energy goals. They are becoming practical tools for managing cost, reliability, and fuel risk at the same time. New York’s experience offers a useful case study for any state trying to meet rising demand without putting more pressure on customers.