Every NY bill carries five state-policy line items.
Three are volumetric (charged per kWh, so heavy users pay more in absolute dollars). One is ad valorem (a percentage of utility gross revenue). One is the regular state and local sales tax. Below, each surcharge with its purpose, approximate size and the agency that sets it.
System Benefits Charge
Energy efficiency programs, R&D, energy assistance for low-income customers, the EmPower NY weatherisation program and outreach.
Who sets it
NY PSC, funds NYSERDA
Shape
Volumetric (¢/kWh)
Typical range
~0.4 to 0.6 ¢/kWh
Clean Energy Standard / Renewable Portfolio Standard
The build-out of large-scale renewables (offshore wind, upstate solar, transmission upgrades) and Zero-Emission Credits for upstate nuclear plants. The cost is recovered from supply customers as a Renewable Energy Standard surcharge.
Who sets it
NY PSC + NYSERDA, funds large-scale renewables
Shape
Volumetric (¢/kWh)
Typical range
~0.3 to 0.9 ¢/kWh
Energy Affordability Program rider
A monthly bill discount for households on a utility low-income program (HEAP-eligible) capping the energy bill at about 6% of household income. The discount is paid for by a surcharge on every other residential and small-commercial customer.
Who sets it
NY PSC, collected by each utility
Shape
Volumetric (¢/kWh)
Typical range
verify with PSC tariff schedule: typically small (under 0.5 ¢/kWh on residential)
18-a Assessment + Temporary State Energy Conservation Assessment
The general state fund and the operating budgets of the PSC and Department of Public Service. It is collected from utilities and passed through on the bill as a Gross Receipts Tax (GRT) or "Revenue-Based PILOT" line.
Who sets it
NY Legislature (Public Service Law §18-a)
Shape
Ad valorem (percentage of utility gross revenue)
Typical range
base assessment ~1/3 of 1% of utility gross intrastate revenue, plus a temporary additional assessment
NY State + local sales tax
State and county general funds. Many municipalities exempt residential utility service from their share of the sales tax: Con Edison customers in NYC pay only the 4.5% NYC rate on a portion of the bill, while many upstate jurisdictions exempt residential service entirely.
Who sets it
NY State + counties / cities
Shape
Ad valorem (% of pre-tax bill)
Typical range
4% state + local rate (often 4 to 4.875%): combined typically 0% to 8.875% depending on jurisdiction (residential energy is exempt in some localities)
Need to know the exact value in your area? Pull your utility’s residential Statement of Rates from the NY Department of Public Service. Look for service class SC-1 (most households). The current SBC, CES and EAP rates are stated in cents per kWh; the 18-a base assessment shows on the utility’s commission filings.
Why NY surcharges grew so much after 2019.
For most of the post-1998 deregulation era, NY surcharges sat at roughly 3% of a typical residential bill. Then in July 2019 New York adopted the CLCPA, the Climate Leadership and Community Protection Act. It is the most ambitious state climate law in the country: 70% renewable electricity by 2030, a zero-emission electricity system by 2040, and economy-wide net-zero by 2050.
That target needs paying for. The PSC and NYSERDA recover the build-out cost through the same surcharge stack that already existed, scaled up. Three things changed mechanically:
- The Clean Energy Standard surcharge was created to fund renewable-energy contracts at scale, replacing the older Renewable Portfolio Standard;
- NYSERDA budgets for energy efficiency and low-income programs were enlarged, raising the System Benefits Charge recovery target;
- The EAP low-income discount was expanded in 2016 and recalibrated post-CLCPA so the surcharge that funds it on other customers grew with the program’s reach.
The composite effect is that the policy-surcharge slice of a typical bill has moved from around 3% to closer to 5 to 8% depending on the utility and the local sales tax rate. Independent oversight from the NY Department of Public Service publishes the most recent CLCPA cost trackers each year.
Why surcharges follow the kilowatt-hour, not the supplier.
Two design choices shape who actually pays NY surcharges. Both are deliberate, and both have winners and losers.
Volumetric, not flat
SBC, CES and the EAP rider are charged per kWh. A 1,200-kWh household pays roughly twice the surcharge dollars of a 600-kWh household, even though both received the same policy benefits. The design is intentional: it ties the policy cost to the size of the carbon footprint. It also means efficiency upgrades and solar reduce both your energy bill and your surcharge bill.
Non-bypassable by ESCO choice
All five surcharges sit on the delivery side of the bill, not the supply side. That makes them non-bypassable: even if you switch from utility default to an ESCO, you keep paying them. ESCOs in NY can only compete on the supply line; they cannot offer to remove the SBC or the CES surcharge.
Solar exporters partially escape
Because the volumetric surcharges scale with net kWh drawn from the grid, a residential solar system reduces them in lockstep with the bill. A house that net-exports half its load over a year pays roughly half the SBC and CES it would otherwise pay. The 18-a assessment and the fixed customer charge stay flat, those are not avoided. This is the structural argument for rooftop solar in New York that does not show in any retail-rate comparison.
Low-income customers are insulated
A household on EAP pays a discounted bill that is capped at roughly 6% of household income, so even if the EAP rider on other customers grows, the EAP household’s exposure to the surcharges is bounded by the cap. The cost of the cap is recovered from every non-EAP customer. That is the explicit social-policy choice baked into the rate design.
Surcharges look different in each utility zone.
The SBC and CES per-kWh values are similar statewide, set in NYSERDA orders. The big differentiator is the local sales tax: downstate (NYC + Westchester + Long Island) carries the city or county sales tax on residential energy; many upstate counties have exempted residential service. That single rule swings the surcharge share by several percentage points.
| Utility | Region | Volumetric (SBC+CES+EAP) | Local sales tax | Est. surcharge share |
|---|---|---|---|---|
| Con Edison | NYC + Westchester | ~1.7 ¢/kWh | ~4.5% | ~8% |
| Orange & Rockland | Lower Hudson Valley | ~1.6 ¢/kWh | ~4.5% | ~7 to 8% |
| PSEG Long Island | Nassau + Suffolk | ~1.5 ¢/kWh | ~2.5% | ~6% |
| Central Hudson | Mid-Hudson Valley | ~1.5 ¢/kWh | exempt to ~3% | ~5% |
| National Grid Upstate | Buffalo / Syracuse / Albany | ~1.4 ¢/kWh | often exempt residential | ~4 to 5% |
| NYSEG | Southern Tier + Finger Lakes | ~1.3 ¢/kWh | often exempt residential | ~4 to 5% |
| RG&E | Rochester Region | ~1.3 ¢/kWh | often exempt residential | ~4 to 5% |
Estimates only: verify with each utility’s current Statement of Rates and NY Dept of Taxation publication TB-ST-775 for residential energy sales tax. Local exemptions can change year to year.
A typical 600 kWh / month NY household, itemised.
Below is a back-of-envelope split of a typical month at the NY average rate of 28.55 ¢/kWh (EIA, March 2026). Treat each surcharge dollar value as indicative: the exact line on your bill depends on your utility’s current Statement of Rates and your local sales tax.
NY average · 600 kWh
$171.30 estimated full bill
Calculated as 600 × 28.55 ¢/kWh. Verify on your own bill.
SBC (System Benefits Charge)
~0.5 ¢/kWh × 600
~$3.00
CES / Renewable surcharge
~0.6 ¢/kWh × 600
~$3.60
EAP low-income rider
~0.4 ¢/kWh × 600
~$2.40
18-a Assessment + Conservation
~2% of pre-tax bill
~$3.40
NY sales tax (downstate, 4.5%)
often exempt residential upstate
~$7.70
Total state surcharges (downstate)
about 11.7% of the full bill in NYC
~$20.10
Total state surcharges (upstate, tax exempt)
about 7.2% of the full bill
~$12.40
Per-kWh figures are midpoints of typical PSC tariff ranges in force May 2026. They are not a quote. The two totals shown bracket the realistic spread between a Con Edison NYC bill and an upstate utility bill with the residential sales tax exemption. Use the calculator at the top to model your own usage.
Six things that genuinely reduce your surcharge bill.
Switching ESCO will not. These six options will.
Apply for HEAP & EAP
A family of four with annual gross income up to about $80,165 qualified for HEAP in the 2025-2026 season. HEAP enrolment unlocks the permanent EAP monthly discount on every NY utility: a multi-year saving, not a one-off grant.
Use NYSERDA efficiency rebates
The SBC you pay each month funds the rebates. Heat-pump installations, insulation, smart thermostats and efficient appliances all qualify. See NYSERDA programs for a catalogue: take back the surcharge you have already paid.
Join a demand-response program
Con Edison, National Grid, NYSEG, RG&E and PSEG Long Island all offer residential demand-response payments. You let the utility curtail your AC or pool pump on peak days; they pay you a few dollars per event. Sign up via your utility account portal.
Move to a time-of-use rate
Most NY utilities offer a voluntary TOU service classification. You pay more per kWh during peak hours, less off-peak. If you can shift laundry, dishwashing and EV charging to overnight, the surcharges scale down with the lower-rate kWh and the volumetric surcharges drop too.
Install rooftop solar (study VDER)
Residential solar is paid under the VDER Value Stack, not retail net metering. Exports reduce the net kWh you draw and therefore the volumetric surcharges. The 18-a and fixed customer charge remain: solar is not a complete escape.
Get EmPower NY weatherisation
A free NYSERDA program for income-eligible households: insulation, air sealing, basic appliance replacement. Funded by the SBC every customer pays. If you qualify, the saving is permanent and shows on every future bill.
Common questions about NY state surcharges.
Your delivery charge is what the utility keeps to maintain wires, poles, the meter and billing. A state surcharge is added on top by the PSC or the legislature to fund a public-policy program. The utility collects it but does not keep it. The money flows to NYSERDA, the state general fund or the EAP discount pool. Surcharges show as their own line on most NY bills.
SBC is the System Benefits Charge. It funds NYSERDA programs: residential energy efficiency rebates, EmPower NY weatherisation, R&D and outreach. It is volumetric (typically about 0.4 to 0.6 ¢/kWh on residential), so the more you use the more you pay. Set by the PSC, recalibrated every few years through a NYSERDA funding order.
The CLCPA set legal targets of 70% renewable electricity by 2030 and net-zero emissions by 2050. To pay for the build-out (offshore wind, upstate solar, transmission upgrades, building electrification), the PSC has been raising the CES and renewable surcharges, and approving larger NYSERDA budgets recovered through the System Benefits Charge. Together these riders have moved from roughly 3% of a typical residential bill before CLCPA to closer to 5 to 8% today (verify with current PSC funding orders).
No. State surcharges are "non-bypassable", meaning they apply whether your supply comes from the utility default rate or from an ESCO. The volumetric surcharges (SBC, CES, EAP) are recovered through the delivery side of the bill and follow the kilowatt-hour, not the supplier. The only legal way to reduce your absolute dollar surcharges is to reduce the kilowatt-hours you use.
Net-metered residential solar reduces the net kilowatt-hours you draw from the grid, which reduces the volumetric surcharges (SBC, CES, and the volumetric portion of EAP). It does not remove the fixed customer charge or the ad valorem 18-a assessment on the delivery you still take. Solar customers on the VDER tariff are credited on exports at a time-and-zone value, not at the retail rate, so the surcharge offset is partial rather than one-for-one.
Pull your utility's residential Statement of Rates. Every NY utility files one with the Department of Public Service. The most recent values for SBC, CES, EAP and 18-a are stated in cents per kWh on residential service classifications (SC-1 for most homes). The PSC also publishes pending and recent rate cases showing approved updates.
Yes. The HEAP program (the federal LIHEAP grant administered by NY OTDA) provides a regular heating benefit of $21 to $996 for the 2025-2026 season, plus emergency benefits, for households below the income cap (about $80,165/year for a family of four). HEAP enrolment also triggers the EAP monthly bill discount on every NY utility, a permanent reduction, not a one-off grant. Apply through your county Department of Social Services.
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