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New Yorkers face some of the country’s highest electricity costs in 2025. While the market offers a degree of choice in energy providers in parts of the state, the New York average electric bill remains elevated compared to national averages.
New York operates under a partly deregulated electricity market: most parts of the state allow customers to choose among competitive electricity providers, while there are limited opportunities in others (especially Long Island) and rely on traditional electric utility companies. This setup promotes pricing flexibility (in terms of pricing per kilowatt-hour) but also means rates vary significantly based on location and provider.
Benefits of Energy Deregulation:
- Ability for customers to shop around and select energy plans that fit their usage and preferences
- Access to innovative plans, including renewable energy, variable-rate, and fixed-rate options
- Competitive incentives from electricity providers, such as promotional pricing or value-added services
Downsides of Energy Deregulation:
- Complex pricing, fees, and contract terms can confuse customers
- Potential for volatile pricing tied to wholesale energy markets
- Not universally available; some areas remain fully regulated with limited provider options
New York generates the bulk of its electricity in the state and imports relatively little. As of 2024, New York’s electricity generation mix was composed of natural gas-fired power plants, hydroelectric, nuclear, wind, and solar power.
This diverse mix, dominated by natural gas and supplemented by hydro and nuclear, provides a reliable energy foundation. New York‘s ambitious climate goals aim for 70% renewable electricity by 2030, but reports suggest these targets may be delayed to as late as 2033 due to rising demand and supply constraints, according to Politico.
Meanwhile, the state is ramping up renewables significantly: the New York Power Authority (NYPA) plans to double its public renewable output to around 7 GW, which could power roughly 7 million homes, aligning with broader decarbonization efforts.
In spring 2025, New Yorkers paid an average residential electricity rate of 26.67¢/kWh, up 13% from 2024, ranking among the highest in the nation. This translates to an estimated average monthly electric bill of $145.17/month, based on usage of roughly 566 kWh/month.
Average commercial electricity rates and bills in New York have also increased. Under current 2025 rates (19.25¢/kWh), a small business using 600 kWh/month might pay around $114/month, an increase from 2024. For a medium-sized commercial user with 10,800 kWh/month, projected bills are approximately $2,052, also up from previous years.
These numbers show that commercial electricity costs are up compared to prior years.
Commercial and residential customers‘ bills vary by region and usage. Many residents spend between $145 and $265 per month on electricity, depending on usage levels and location.
A $150 bill is slightly above the national average (~$153/month) but below many New York averages. So, it’s moderate but not unusually high by state standards.
Rising electric bills stem from higher per‑kWh rates, grid upgrades, and New York State‘s green mandates. Rate hikes of 11–13% have been approved, and surging demand (e.g., from AI data centers) strains supply and pushes costs up.
Options depend on location and usage. In deregulated areas, rates and electricity prices vary widely, but shopping tools like 5 Digital Energy or local utility comparisons can help identify the lowest-cost providers for better energy savings and lower energy costs.
New York‘s average electricity rates (~26.7¢/kWh for residential and ~19¢/kWh for commercial) are significantly higher than the national average (~17.5 ¢/kWh for residential and ~173¢/kWh for commercial), making its bills among the highest nationwide.