From heating and cooling your home to watching shows and surfing the internet, electricity is a necessity for everyday life. However, with energy costs in New York rising, people are finding it increasingly difficult to afford their utilities.
There is still plenty of hope for New York residents, though. It’s a deregulated state, meaning you can choose a provider that presents a plan and price point that best fits your budget and household electricity demand.
A Closer Look at Energy Costs in New York
New York has a little bit of everything for everyone, but it is renowned for its high cost of living, encompassing housing, groceries and transportation. Those living in and around New York City are most susceptible to exceedingly expensive goods and services.
Utility costs are no different, with the average resident paying approximately $267 monthly for electricity, equivalent to $3,204 annually. In fact, electricity bills are 16% higher than the national average at 24 cents per kilowatt-hour (kWh).
Although it may come as a surprise to some, the state is not the most expensive place for powering your household. Hawaii charges customers 41 cents per kWh, followed by Connecticut at 32 cents per kWh. Nevada currently has the cheapest electricity rate at 11 cents per kilowatt-hour.
5 Reputable New York Energy Providers for Residents
New York’s utility sector features several reputable providers with a range of plans, whether you own or rent. The state is aiming to improve its sustainability, and green energy is on the rise. These five companies are well worth your time and consideration as you search for a new electricity supplier.
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Northeastern Power
Northeastern Power (NEP) is a licensed retail energy organization serving residents of New York and the broader region. It purchases electricity from utility companies, such as Con Edison, and offers competitive rates to customers. Choose between fixed-rate and variable pricing structures, with flexible terms and zero service interruptions.
NEP also offers renewable energy options, including solar, wind and hydroelectric power. You may also consider various microgrid solutions to enhance your home’s sustainability and maximize your savings.
Search for available plans in your area by entering your ZIP code on the website, and review each contract for pricing, terms and other important details. Determine whether your existing plan has any termination fees before registering online. NEP will contact your utility company to facilitate the transfer on your behalf.
Key features:
- Fixed- and variable-rate plans
- Personalized customer service
- Renewable energy options
Green Mountain Energy
Green Mountain Energy has provided fully clean solar and wind energy for over 20 years, serving New York and six other states. Residents can choose between a 100% wind energy plan or one that features 95% wind and 5% solar energy, including local renewable sources. You can also opt for stable rate terms or flexible pricing.
Customers with solar panels receive net metering-style bill credits for any excess energy they send to the grid through the Renewable Rewards Buy Back Program. Monthly or multiyear terms also offer greater flexibility.
This provider delivers a practical mobile app for you to easily manage your account, track your electricity usage and earn green living rewards for additional savings.
Key features:
- 100% wind and solar energy plans
- Fixed- and variable-rate plans, with multiyear or monthly terms
- Renewable Rewards Buy Back Program
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Direct Energy
Direct Energy aims to make your life easier with streamlined plans and services that cater to a range of needs. Its fixed-rate offerings deliver price stability throughout your entire contract term with no early termination fees. You can also shop for variable rates or plans with long or short-term conditions.
This supplier supports renewable energy initiatives, offering a locked-in rate for two years. Meanwhile, you can log into your online account to monitor your home power consumption, renew your plan and refer people you know.
You can also add smart home security to your contract through Direct Energy’s partnership with Vivint, providing you with access to additional savings and greater peace of mind.
Key features:
- Fixed-rate, variable and renewable energy plans
- No early termination fees
- Add-on home security protection
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National Grid
National Grid is one of New York’s primary energy providers with a suite of comprehensive services and flexible rate plans for state residents. Whether you are looking for standard electric and gas utilities or renewable energy sources, it can help you tap in to the power you need.
Customers receive transparent billing and can take advantage of energy efficiency incentives and community programs to achieve even greater savings and environmental benefits.
The Budget Plan also makes monthly energy costs more predictable by averaging your usage over 12 months and dividing it into equal payments. National Grid will review your plan every three to six months and make adjustments based on your actual energy usage to avoid larger year-end balances.
Key features:
- Standard utility plans and flexible rates
- Renewable energy programs
- Budget Plan for predictable payments
CleanChoice Energy
CleanChoice Energy delivers 100% clean wind and solar energy, sourcing it directly from the regions it serves. It is currently building its own solar project, which will make it the first U.S. supplier to generate and supply its own renewable energy. By 2030, it hopes to have 2 GW of solar energy to power 1.5 million homes.
Most areas can sign up for introductory or 12-month plans without a cancellation or early termination fee. You can also speak to a customer service representative about fixed-rate plans for predictable monthly payments. After the initial term of the contract, you will pay according to variable market conditions.
Enrollment takes just two minutes, and you can cancel at any time with no penalty. Additionally, you can enjoy 100% renewable energy with no equipment or installation required.
Key features:
- 100% clean energy from your region
- Introductory and 12-month plans
- No cancellation or early termination fees
Choosing the Best Residential Energy Provider
Selecting the right residential electricity provider is crucial to beating steep energy costs in New York. Thanks to a deregulated system, New Yorkers can make independent decisions about the best plan for their household needs and budget. Consider the following criteria when evaluating suppliers:
| Pricing Structure | Compare fixed- and variable-rate plans to minimize cost fluctuations and achieve greater savings. Also, look for hidden fees, early termination penalties and other unforeseen charges. |
| Plan Flexibility and Enrollment Process | Check whether you can customize plans based on your personal energy usage at home. Ask about flexible contract durations or penalty-free transitions to another option if your needs change. |
| Renewable Energy Options | Ask a provider about green energy plans that utilize solar, wind or hydropower. If interested, consider whether you want entirely clean power or a mix of renewable and nonrenewable sources. |
| Community and Special Programs | Inquire whether the energy supplier offers community solar, assistance for low-income customers or special programs for specific demographics, such as older adults. |
| Incentives and Rewards | Explore an energy supplier’s loyalty programs, energy efficiency rebates and upgrades, and referral bonuses to cut costs. Some companies may also offer enrollment incentives and other perks for switching to them. |
| Online Tools and Accessibility | Determine if the provider offers an online account dashboard or mobile app to help you track your energy use and pay your bills with ease. |
| Customer Service and Support | When reading reviews, look for insights into each provider’s customer service and communication methods. Check the website to determine if it offers 24-hour support, especially during power outages or emergencies. |
| Reputation and Reviews | Look up online reviews and testimonials. Third-party comparison websites can give you better insight into what each company offers in a practical table. Likewise, check for reviews that help you understand long-term customer satisfaction. |
Is Switching Energy Providers Easy in New York?
Switching energy providers in New York is straightforward due to the deregulated market. Officials established the New York Independent System Operator in 1999 to manage the state’s electricity system, including overseeing long-distance transmission networks and ensuring the smooth operation of trade.
Residents can easily shop and compare electricity plans from various suppliers. Once they have chosen a provider, they do not need to notify their utility company, change wiring or endure a service interruption. Oftentimes, they can complete enrollment online or over the phone.
The existing utility will continue delivering power and responding to electrical emergencies, while your new supplier handles your rates and contract.
Are There Hidden Fees When Switching to an Independent Energy Provider?
Hidden fees may be a concern for many homeowners when switching to an independent energy provider. It is crucial to prioritize companies that deliver transparent pricing, meaning you must carefully review contract details before signing.
Keep in mind that some providers may charge enrollment, early termination and administrative fees. Others offer variable or fixed rates and service charges. Be direct and ask about any unexpected costs. You can avoid financial surprises by reading online reviews and using comparison websites to gain a better understanding of pricing structures.
What Is the Difference Between a Fixed and Variable Rate?
A fixed-rate energy plan locks you into an established price per kilowatt-hour for the duration of your agreement’s terms. Many homeowners prefer this structure to protect themselves against market fluctuations, making budgeting easier as energy costs rise.
A variable rate means your electricity costs may change monthly in response to fluctuations in wholesale energy market conditions. Although you may have lower electricity bills during periods of decreased demand, you may need to pay more during high-peak periods and market instability.
Overall, a variable rate carries a greater risk, requiring you to select a plan based on your financial situation and risk tolerance.
Are Community Solar Programs Available in New York?
Community solar programs are widely available in New York, providing homeowners and renters with access to clean energy. The state had over 2 gigawatts (GW) of community solar capacity in December 2023, which is sufficient to power approximately 400,000 homes. It is on track to install 10 GW by 2030.
These programs enable you to subscribe to a portion of a large, off-site solar farm, in which you receive credits for solar power you generate on your utility bills. This effectively decreases monthly costs — typically a 5% to 10% discount each year on your electricity consumption — without requiring equipment installation or up-front investment.
Enrollment for community solar usually takes about one to three months, including when you start to receive bill credits. You can accelerate this process by joining an established or near-completion community solar power project.
Are There Energy Discounts for Low-Income Households?
Several energy discounts and assistance programs are available to help low-income households afford their utilities. For instance, the Home Energy Assistance Program (HEAP) gives you direct financial aid for heating and electricity bills.
As of December 1, 2025, the federally funded HEAP is now accepting applications, providing monetary relief to approximately 2.7 million households in New York. Individuals must have annual salaries at or below the 60% state median income level. Energy bills consume 10% to 20% of many low-income customers’ earnings, whereas HEAP has set the energy burden target level at or below 6%.
Some utility providers also provide monthly bill credits, special rates and budget billing for those who qualify.
How Does New York Support Renewable Energy Adoption?
New York has supported renewable energy adoption by setting policies, programs and incentives geared toward clean power. For example, you can tap in to NY-Sun incentives and its network of expert installers, along with various state and federal tax credits and manufacturer rebates, to make the transition more affordable.
The U.S. Energy Information Administration also says that state law will require 70% renewable energy generation by 2030. Currently, New York ranks third among all states for creating the most clean electricity. It is also the nation’s third-largest producer of hydropower.
Rethinking Home Energy on Your Terms
Energy costs in New York are higher than in many other states. Fortunately, homeowners have the power to choose which provider and plan best fit their electricity needs and budget. Avoid locking yourself into a service that does not work for you and explore your options to make an informed decision.
