Solar Power Is Already Saving New Yorkers Millions, and It’s Just the Beginning
By Barry Wygel, Alliance for Clean Energy New York
When temperatures soared across New York this summer, so did electricity demand. On the hottest day of 2025 (June 24), the state’s electric grid was pushed to its limits. But while air conditioners ran at full blast, solar panels on rooftops and in communities across the state quietly did their part to keep the lights on and costs down.
According to new analysis by NYSERDA provided to ACE NY, solar power already installed across the state helped New Yorkers avoid an estimated $90 million in costs during that single day.
That’s not a forecast or a theoretical model; that’s real money saved by real New Yorkers, thanks to clean energy already operating on our grid.
How Solar Keeps Prices Down
Here’s how it works: On the hottest days, when electricity use peaks, the grid operator (NYISO) often turns to the most expensive and least efficient fossil-fueled “peaker” plants to meet demand. These plants run only a few hours per year, but can drive up costs for everyone—since wholesale prices spike during those hours, and those costs flow through to ratepayers.
But behind-the-meter solar, the kind installed on homes, businesses, and community solar projects, helps reduce demand exactly when prices are highest. On June 24, as demand surged, those local solar systems produced megawatts of electricity that didn’t have to be supplied by the grid. NYSERDA’s analysis shows that without that solar contribution, the state’s peak load would have been significantly higher, and as a result, everyone’s bills.
By shaving that peak, solar reduced what New Yorkers paid. NYSERDA estimates those avoided costs as:
$37.7 million statewide (NYCA),
$24.2 million in New York City,
$15.1 million in the Lower Hudson Valley, and
$13.9 million on Long Island.
These numbers only reflect behind-the-meter solar, they don’t include utility-scale solar or the additional support wind provided that day.
A Proven Benefit, Not a Future Promise
Solar’s impact isn’t unique to New York. Across the Northeast, clean energy is delivering similar results. During this summer’s regional heat waves, Canary Media reported that solar and battery storage helped flatten demand peaks and avoid expensive emergency generation across multiple states.
NYISO highlights the same trend in its 2025 Power Trends report, noting that distributed resources like solar are playing a growing role in improving reliability and affordability on the state’s grid.
The message is clear: Every kilowatt-hour of solar generated on-site is one less kilowatt-hour we need to buy at premium prices from fossil plants.
The Cheapest, Fastest Energy on the Grid
Don’t let misinformation confuse the issue; renewable energy isn’t just good for the environment, it’s the cheapest and fastest-deploying source of new power available today. The World Resources Institute has documented how shifting to renewables lowers wholesale power prices, improves grid resilience, and protects consumers from fossil fuel price spikes.
New Yorkers are already seeing those benefits firsthand. As more solar comes online, as well as more energy storage, the savings and reliability benefits will continue to grow.
New York’s Clean Energy Future Is Paying Off
The data is in: Solar power is helping keep New York’s electric system affordable, reliable, and resilient. Investments in clean, local energy aren’t just part of our climate strategy; they’re a key part of keeping energy costs under control for everyone.
On the hottest days of the year, solar isn’t just keeping the lights on.
It’s keeping your bills down.
