New York study finds distributed solar and storage could save ratepayers $1 billion annually

The report suggests expanding 2035 targets for local clean energy to 20 GW to mitigate wholesale price volatility and improve winter reliability.

January 21, 2026 Ryan Kennedy

Image: Department of Energy

A report from Synapse Energy Economics found that New York could realize $1 billion in annual energy benefits by increasing its distributed solar target to 20 GW by 2035. The study compares a business-as-usual case of 12.9 GW against a policy-driven case to quantify the impact of local power generation and storage on wholesale markets.

The findings arrive as the state seeks to maintain momentum toward its Climate Leadership and Community Protection Act mandates amid delays in large-scale offshore wind projects.

The analysis shows that expanded deployment would lower average annual residential electricity bills by $87 for upstate customers and $46 for downstate customers. Savings result from a reduction in the wholesale market clearing price as zero-marginal-cost solar energy displaces more expensive fossil fuel resources.

The report notes that energy storage complements these solar additions by charging during periods of low demand and discharging during high-price evening hours.

According to the data, 56% of the projected energy cost savings occur during the winter months from November through March. This lines up with winter demand peaks, addressing concerns from the New York Independent System Operator regarding grid stress as the state transitions to electric heating. The study finds that distributed solar and storage provide capacity during evening hours in January and February when reliability events are most likely to occur.

The expanded target would lead to an estimated avoided 59 billion cubic feet of natural gas consumption for electricity generation in 2035 and an abatement of about 3.2 million metric tons of carbon dioxide emissions, which the report valued at $947 million in avoided social costs.

The Coalition for Community Solar Access, which commissioned the report, noted that the state has already achieved its initial 6 GW solar goal ahead of schedule.

Legislative proposals like the Accelerate Solar for Affordable Power (ASAP) Act are currently being considered to make the 20 GW target state law. Industry advocates argue that doubling down on distributed solar provides a predictable path for decarbonization while lowering costs for all ratepayers regardless of whether their home has a solar installation.

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