New York Electricity Rates and Providers (2024)

How Do You Find the Best Electricity Rates in New York?

Many New York residents assume that the energy plan with the lowest per-kWh rate is the right one for them, but there are other factors that should influence your decision. Below, we’ll explain how the energy consumption of your home, along with some finer details in your energy contract, can affect the price you pay for electricity and your overall satisfaction with the plan.

Your Energy Usage

The amount of electricity you use each month will have an effect on what you pay for electricity because most local utility companies use a tiered rate structure to determine your per-kWh rate. A tiered rate plan means that consumers who use different volumes of power will have different rates, usually with below-average or above-average consumption households having higher per-kWh prices. If you use well above or below the average NY consumption of 602 kWh per month, a tiered rate might end up costing you more than the average in your area.

Another option offered by some electric companies is the time-of-use (TOU) rate structure. These plans charge all customers the same amount, but the rate changes based on when energy is consumed. Your provider will have set off-peak times where energy rates are lowest, mid-peak times where they’re a bit higher and on-peak times when electricity is most expensive. If you use most of your electricity during off-peak hours, a TOU plan might be suitable for you, even if it comes at a slightly higher per-kWh rate.

Your Contract Length

The length of the contract you’re entering into with an energy plan is also a crucial factor to consider. Most fixed-rate plans require contracts, and they can vary in length from a few months to several years (usually a maximum of three years). Signing onto a contract means you’ll lock in a set rate regardless of local energy prices, which could end up being positive or negative depending on the customer’s viewpoint. Generally speaking, longer contracts come with lower rates.

You’ll also want to consider the fine print in the contract, which could include information about introductory rates that may increase during your contract term, sign-up fees, early-termination fees and more. If you’re unsure of which energy plan is right for you and your home, you can use this tool or the buttons below to help get started in the right direction.

Many of the best clean energy providers — such as Verde Energy USA — offer plans that require no cancellation fees or sign-up fees. The absence of these fees indicates that the energy provider is confident in its low prices and helps to make you feel better about switching to a new energy company.

What Types of Electricity Plans Are Offered in New York?

When you’re looking through energy plans in New York, you’ll likely come across some terminology that is unfamiliar, including the types of plans that are available. Below, we’ll explain some of the common types of energy plans you’ll find in New York to help you better understand which ones might work best for you.

Fixed-Rate Plans

Fixed-rate plans usually require a contract for up to three years, during which time the rate you pay per kWh remains exactly the same. Contrary to what some homeowners believe, your electric bill can still go up and down with fixed-rate plans, as the only portion of the contract that is fixed is the per-kWh price. If you have a month of higher consumption, your bill will be higher.

We typically recommend fixed-rate plans because they provide security that your energy rates won’t increase over time. Other options can have rates that spike during times of increased demand or low supply, so a fixed-rate plan is typically best for budgeting. However, they almost always require contracts, and most of them have early-termination fees.

Nearly all of our New York energy providers offer fixed-rate plans at contracts that last between six and 36 months. You may notice that the contracts with the longer terms have a per kWh price that is higher than the shorter terms. This is likely because the company anticipates electricity rates to increase, so you will likely save money over time even though the starting rate is higher.

Variable-Rate Plans

Variable-rate plans have per-kWh rates that change on a regular basis, depending on the local energy prices. The amount you pay for each kWh you consume could be different from month to month or even on a daily basis. Variable-rate plans often have the benefit of not requiring contracts, which means there are no early termination fees preventing you from switching energy providers should you want a lower rate.

However, we usually don’t recommend these plans because they can leave you with astronomically high energy bills if the local energy price skyrockets — and little peace of mind during times of crisis or high demand. Especially with how high New York energy rates can be, it is likely better to lock in a lower rate than risk variable rates.

No-Deposit and Prepaid Energy Plans

Many electric companies in New York require some type of deposit or sign-up fee to enroll in an energy plan, which is a way to offset the risk of future non-payment. Some New York utility providers offer no-deposit plans for customers who can pass a credit check, which can save you some money on upfront electricity costs. These plans can also have variable or fixed rates, so you can choose the plan that’s right for you.

Another option to reduce initial costs is a prepaid energy plan. These don’t require a deposit because you instead put money into an energy account, which will be drawn from to cover your power consumption. You have to remember to top up the account to avoid power outages, but these plans offer a guaranteed way to limit how much you spend on electricity each month.

Green Energy Plans

Many electric suppliers in New York purchase fossil fuels like natural gas and coal to provide energy for customers, but green energy plans instead purchase or support renewable energy like wind and solar. We always recommend these plans because they let you support green energy without having to spend thousands on solar panels, and they help reduce your carbon footprint and the pollution your energy consumption creates.

New York established the Clean Energy Standard, which sets a Renewable Portfolio Standard (RPS) goal of producing an incredible 70% of its electricity via clean energy sources by 2030.¹ Although green energy plans are already widely available and affordable, it’s possible that the state will further incentivize green energy plans and reduce the cost of clean energy even more.

Business Energy Plans

Finally, business energy plans are designed for commercial customers that have greater energy needs than residential customers. These plans can be fixed-rate or variable-rate and can also be 100% renewable energy plans.

According to the U.S. Energy Information Administration², commercial, industrial and transportation electricity prices tend to be lower than residential. This price difference is likely because businesses are expected to consume significantly more energy than the average New York household.

Energy providers often service both residential and commercial clients, so you can get a business energy plan from top providers that specialize in commercial and office electricity, such as Payless Energy.

Best Green Energy Options

4.5/5

Green-e certified plansMany years of experienceMakes charitable contributions

Get Quotes

Best Value for Renewable Energy

4/5

No early termination feesMany years of experienceLow rates

Get Quotes

Great Local Provider

4/5

Wide variety of contract term optionsWide variety of plan options

Get Quotes

What Should You Look For When Choosing an Electricity Provider In New York?

Whether you are a new resident in New York or are a current resident who is unhappy with your current electricity prices, you can explore various energy companies to find the best electricity rates available. It’s important to consider the following factors as you research the top energy providers in New York:

• Customer reviews
• Company history in your neighborhood
• Electricity rates
• Type of energy plan
• Energy sources

Picking Energy Providers As A New New York Resident

If you are new to New York, then you will have to do plenty of research before you decide on an electricity plan and provider that is right for your home. Especially if you are moving from a state that has not deregulated electricity, then the concept of choosing your own energy provider may seem like a daunting task.

The best first step is to talk to the previous owner of your new home, your landlord or your neighbors. Next, you should focus on researching the following factors:

• Customer reviews: A lot can be learned from what actual consumers have experienced. To learn the most about how an energy company performs in your neighborhood, look through both positive and negative customer reviews
• Company history in your neighborhood: Not all energy companies operate in every neighborhood and some companies may have more experience in your area than others. It may be beneficial to find a company that has a wide network in your area because there’s a good chance you’ll get quicker service should something go wrong
• Electricity rates: Electricity price is one of the most important factors for most homeowners, so look at several companies and compare energy rates before you make your decision

Selecting an Energy Provider If You Are Switching Providers in New York

As a current New York resident, you likely have some insight into the most used energy providers in your neighborhood. So you may not need to do as much research as someone who is moving to New York for the first time. However, you should pay attention to rates, types of plans and energy sources.

• Electricity rate: If you are unhappy with your current energy provider, there’s a good chance it has to do with the price you pay for energy. Compare other electricity rates that are offered by local providers
• Type of energy plan: If you had chosen a short six-month contract, you may be interested in a long-term contract that offers a lower fixed rate. Research the plans that are offered by your current energy provider and others in your area
• Energy source: You should research where your state gets its energy. Many New York energy providers offer 100% renewable energy plans that utilize wind and solar energy to power your home

Who Offers Green Energy Plans in New York?

When you opt into a 100% renewable energy plan, it doesn’t always mean that the electricity powering your home comes directly from solar or wind farms. Rather, each kWh of electricity that you pull from the grid is offset by your REP in another place. That said, these energy plans are better for the environment and reduce your carbon footprint.

You may get your energy from wind energy, hydroelectric energy, solar energy and more. Even though these are all renewable sources, not every renewable energy plan is a green energy plan, so look for energy plans that utilize wind or solar energy as these are both examples of green energy.

Best Green Energy Options

4.5/5

Green-e certified plansMany years of experienceMakes charitable contributions

Get Quotes

Best Value for Renewable Energy

4/5

No early termination feesMany years of experienceLow rates

Get Quotes

Great Local Provider

4/5

Wide variety of contract term optionsWide variety of plan options

Get Quotes

What Are The Best Electricity Companies and Providers in New York?

There are lots of electric companies in New York to choose from, thanks to the deregulation of the energy market. No single company will be best for all homeowners, but the below suppliers rank highest in our top-rated electric companies in New York.

Green Mountain Energy Company: Best Green Energy Options

• Positive customer reviews
• 100% renewable energy plans
• Fixed-rate options available
• Multiple contract rate options offered

Verde Energy USA New York: Best Value for Renewable Energy

• Positive online reviews
• 100% renewable energy plan options
• Several contract terms to choose from
• Fixed-rate plans are standard

Payless Energy: Great Local Provider

• Green energy plans available
• Positive online customer reviews
• Fixed-rate plans
• Many options for contract term offered

Residents Energy: Great Regional Provider

• Fixed-rate plan options available
• Green energy plans offered
• Different contract term options