Credit banking, the Long Island deal
PSEG Long Island still runs genuine kWh for kWh net metering: each exported kWh earns one energy credit in a banked account, credits draw down automatically in months you use more than you make, and for systems interconnected since 2018 the arrangement runs 20 years from your start date with no annual cash out to worry about. On the default time of day rate, credits bank separately per rate period, with one bank to bank transfer allowed per bill cycle. Systems connected on or after January 1, 2022 pay New York's Customer Benefit Contribution, about 1.13 dollars per kW of capacity per month for LIPA in 2026 per the state's published table. Old fashioned kWh banking on a big suburban rooftop market is a large part of why Long Island is one of the country's densest home solar territories.
Two things Long Islanders get wrong about their utility
A bill priced monthly
PSEG Long Island (LIPA)'s average residential electricity price has risen from 19.19 cents per kWh in 2015 to 24.57 cents in 2024, an increase of about 28 percent, or roughly 2.8 percent per year. The chart shows PSEG Long Island's average residential price by year. Hover any point for the exact figure.
Current residential rates
PSEG Long Island residential rates are shown below, from the utility's published tariffs and the public Utility Rate Database. Rates vary by plan, season, and usage and change over time.
| Plan | Energy charge | Fixed / basic |
|---|---|---|
| Rate 194 Time of Day (the default for new accounts since January 2024) | Delivery of about 10.9 to 9.3 cents/kWh off peak (summer/winter) but 22.2 or 18.9 cents during the 3 to 7 pm weekday peak, plus a monthly power supply charge billed at 83 percent of the published rate off peak and roughly double it on peak. | $0.56/day service charge (about $17/month) |
| Rate 180 flat (optional legacy rate) | Delivery of 10.64 cents/kWh for the first 250 kWh and 13.48 cents above that in summer, plus the power supply charge, which was 13.37 cents/kWh in July 2026 and resets monthly with market prices. | $0.56/day service charge |
The power supply charge moves every month (July 2026 was an 11.9 percent drop from June), so all-in prices swing with the market. LIPA's 2026 budget projects the typical residential bill about 3.3 percent lower than 2025. Time of day billing has been the default since 2024, which changes both how you pay and how solar credits accrue.
What rising PSEG Long Island rates could cost you
PSEG Long Island rates have risen about 2.8% per year. Enter your bill to see what that pace of increase could compound to over time, and what you have likely already absorbed. This is an estimate, not a guarantee.
Estimate only. Projects your current bill forward at PSEG Long Island's historical average rate increase (2.8% per year, from EIA data); it assumes your usage stays the same except for any add-ons you select. Actual rates depend on your usage, rate plan, and the utility's future filings, and are not guaranteed. This is general information, not financial advice.
Why the island stays a solar hotbed
The export deal is the story here: one exported kWh equals one banked credit, credits persist without an annual cash-out, and the arrangement runs 20 years for post-2018 systems. On the default time-of-day rate, credits even bank separately by rate period, so summer evening exports offset expensive summer evening usage.
The complication is the moving floor. The power supply charge resets monthly with the market, 13.37 cents in July 2026 after an 11.9 percent one-month drop, so the retail value of a banked credit wobbles month to month. LIPA's 2026 budget actually projects bills about 3.3 percent below 2025, a reminder that the trend is not always up. Get a site-specific quote and have the installer model Rate 194's time windows.
PSEG Long Island service area
PSEG Long Island serves Long Island's Nassau and Suffolk counties plus the Rockaway peninsula in Queens, excluding the villages of Rockville Centre, Freeport, and Greenport. The grid belongs to the Long Island Power Authority, a New York public authority, with PSEG Long Island operating it under contract..
To confirm whether a specific address is served by PSEG Long Island, check your electricity bill. A ZIP lookup tool is coming to this site.
Full data and sources
Per-utility prices are computed from EIA Form 861 (bundled residential revenue divided by sales), which reconciles to the EIA's published figures. These are public-domain U.S. government data.
| Year | PSEG Long Island (c/kWh) |
|---|---|
| 2015 | 19.19 |
| 2016 | 18.94 |
| 2017 | 19.77 |
| 2018 | 20.68 |
| 2019 | 20.39 |
| 2020 | 21.22 |
| 2021 | 22.07 |
| 2022 | 25.22 |
| 2023 | 22.33 |
| 2024 | 24.57 |
Sources: EIA Form 861, Sales to Ultimate Customers (2015 to 2024) · PSEG Long Island, rate information and 2026 residential rate book · LIPA, 2026 budget release · NYSERDA, 2026 utility Customer Benefit Contribution rates
FAQ
Does PSEG Long Island have net metering?
Yes, real kWh-for-kWh net metering: each exported kWh earns one energy credit in a banked account, drawn down automatically when you use more than you generate. For systems interconnected since 2018 the arrangement runs 20 years from the start date.
What is the Customer Benefit Contribution charge?
A monthly charge New York applies to solar systems connected on or after January 1, 2022, set for LIPA at about 1.13 dollars per kW of installed capacity in 2026 per the state's published table. A typical 8 kW system pays roughly 9 dollars a month.
Why does my PSEG Long Island bill change every month?
The power supply charge is repriced monthly from energy markets; July 2026's rate of 13.37 cents per kWh was an 11.9 percent drop from June. Delivery charges and the 56 cent daily service charge are the stable part of the bill.
Am I on Rate 180 or Rate 194?
Since January 2024 the time-of-day Rate 194 is the standard residential rate, with a 3 to 7 pm weekday peak; Rate 180's flat delivery is optional. Solar credit banking works under both, but on 194 credits accrue separately per time period.