Solar Panels in Rochester, NY: RG&E's Pending Rate Hike, High Consumption Homes, and the Case for Going Solar Now

Rochester Gas and Electric has filed a rate case with the New York Public Service Commission requesting a 19.8% increase to total electric revenues — one of the largest rate hike requests from any New York utility in recent memory. If approved, the average RG&E residential customer would see a meaningful jump in their monthly bill on top of rates that have already risen significantly since 2021. Rochester homeowners who go solar before that increase takes effect lock in the full current retail rate for net metering credits — 17¢ per kilowatt-hour today — for a guaranteed 20-year term. New York State’s incentive stack for Rochester homeowners remains active in 2026: the NY-Sun Megawatt Block upfront rebate, the 25% state income tax credit up to $5,000, the 15-year property tax exemption on added home value, and RG&E’s 1-to-1 net metering. Rochester’s housing stock — primarily larger single-family homes with higher average electricity consumption than comparable upstate cities — means systems here are typically larger than in Buffalo or Syracuse, which affects both upfront costs and long-term savings calculations.

The RG&E Rate Case and Why Timing Matters for Rochester Solar in 2026

Rochester Gas and Electric, operating as part of the Avangrid utility group alongside NYSEG, filed Case 25-E-0379 with the New York Public Service Commission requesting an increase in annual electric revenues of approximately $220.2 million — a 36% increase to delivery revenues and roughly 19.8% increase to total revenues. The case is currently pending before the PSC. While the final approved increase will almost certainly be lower than the requested amount following PSC review and negotiation, even a partial approval would push RG&E rates meaningfully higher than their current level of approximately 17¢/kWh.

The solar timing implication is direct. When a Rochester homeowner installs solar and interconnects with RG&E, they lock into net metering at the retail rate in effect at the time of interconnection — and that rate is guaranteed for 20 years under New York State policy. If RG&E rates increase by, say, 10% over the next few years, a homeowner who installed before that increase benefits from credits valued at the higher rate while having sized and priced their system at today’s economics. Every rate increase that occurs after a solar system is installed increases the annual savings from that system without increasing its cost. This is the structural advantage of installing solar ahead of known rate pressure rather than after.

RG&E rates have already climbed considerably. The statewide trajectory has been upward: New York electricity rates rose roughly 25% between 2021 and 2024. RG&E’s current rates reflect a mix that has historically benefited from access to low-cost hydroelectric power from Niagara Falls and a strong nuclear component in the regional grid, keeping RG&E rates below the statewide average. That structural advantage has been narrowing as infrastructure investment demands increase. The pending rate case captures grid modernization costs, clean energy integration expenses, and system reliability investments — all categories with continued pressure in coming rate cycles.

NY State Incentives for Rochester Homeowners and the Monroe County Sales Tax Nuance

Rochester homeowners access the same core New York State incentive programs as Buffalo and NYC, with two notable differences — one favorable, one less so.

RG&E falls under the Upstate NY-Sun Megawatt Block, providing an upfront rebate of $0.20 per watt applied directly to the installer’s contract price. For a 10kW Rochester system, this delivers $2,000 off the top. The Upstate block operates on a declining-block structure; current rates should be confirmed with a NYSERDA-approved installer at the time of quoting. The New York State 25% solar tax credit applies statewide: 25% of eligible installation costs (after the MW Block rebate) up to a $5,000 maximum, as a direct state income tax credit carrying forward up to five years if it exceeds annual state tax liability. The 15-year property tax exemption under NYS Real Property Tax Law §487 applies — solar’s added value to Rochester home assessments is protected from property tax increases for 15 years. RG&E’s CBC charge is $1.16 per kW-DC per month, slightly lower than National Grid’s $1.45 — for a 10kW system, approximately $11.60/month unavoidably remains on each bill.

The notable difference: Monroe County does not provide full local sales tax exemption on solar equipment. New York State’s 4% sales tax is exempt statewide, but the local portion — Monroe County’s 4% — still applies to solar purchases. In contrast, Erie County (Buffalo) provides full exemption including local sales tax. On a $30,000 Rochester system, the Monroe County local sales tax represents approximately $1,200 in additional cost compared to the same system in Buffalo. This is not a reason to forgo solar — the state incentives more than compensate — but it is a factual difference that appears on Rochester installation contracts and should be understood before comparing quotes across markets.

Rochester Community Power operates a Community Choice Aggregation (CCA) program for City of Rochester electricity customers, offering residents an opt-out option for alternative supply sourced with renewable energy certificates. CCA participation does not affect solar net metering eligibility or the value of RG&E net metering credits — the utility’s delivery infrastructure and billing remain the same regardless of supply choice. Homeowners with solar systems interact with RG&E for net metering purposes whether or not they participate in Rochester Community Power for supply.

Rochester Solar Costs, System Sizing, and the High-Consumption Home Factor

Rochester stands out in the upstate New York solar market for one statistic: the average monthly electricity consumption for EnergySage users in Rochester is approximately 1,149 kWh — nearly double Buffalo’s 640 kWh average and significantly higher than most other upstate markets. Higher consumption drives larger required system sizes to achieve 100% annual offset, which means higher upfront costs but also proportionally higher long-term savings.

EnergySage data shows the average Rochester system at approximately 11.4–12.6kW, costing approximately $30,000–$34,600 before incentives at roughly $2.74–$2.77 per watt. After the Upstate NY-Sun rebate ($0.20/W = ~$2,280 on 11.4kW) and the NY State 25% tax credit (up to $5,000 on the post-rebate cost), net cost is approximately $22,000–$27,000. The Monroe County local sales tax (4%) applies and adds approximately $1,200–$1,380 to the pre-incentive cost versus a full-exemption county. EnergySage projects a payback period of approximately 9.68 years for Monroe County — longer than Buffalo’s 7.7 years because the same 17¢/kWh rate serves a larger, more expensive system. The 25-year savings projection runs approximately $37,000–$42,000 on a purchased system, less than NYC’s $69,000 because the per-kWh net metering value is much lower (17¢ vs 31¢).

The longer payback compared to Buffalo warrants honest context. Rochester’s payback extends not because the solar resource is worse — peak sun hours are similar, both cities face cloudy upstate winters — but because the rate is lower relative to system size. The pending RG&E rate case changes this calculus materially. If approved at even half the requested level, Rochester’s payback period contracts and 25-year savings expand significantly. A homeowner who installs at today’s economics and locks in 20-year net metering benefits from any approved rate increase without bearing additional system cost. Rochester homes also tend to use substantial electricity for heating (many are transitioning from gas to heat pumps), and households with electric heating or EVs may find larger systems improve the economics further by absorbing more of that consumption.

Frequently Asked Questions

What is the pending RG&E rate case and how does it affect solar in Rochester?

RG&E filed Case 25-E-0379 with the New York Public Service Commission requesting approximately $220.2 million in additional annual electric revenues — roughly a 19.8% increase to total electric revenues. The case is pending PSC review as of early 2026; the final approved amount will be lower than requested, as PSC proceedings typically result in negotiated settlements. Rate cases of this type generally result in phased implementation over one to three years following approval. The solar relevance: when you install a solar system and interconnect with RG&E in 2026, you lock in the current retail rate for net metering credits for 20 years. If RG&E’s rate rises to, say, 20¢/kWh in two years, your banked summer credits are worth more — improving annual savings on a system whose cost is already fixed. Installing before a rate increase takes effect captures the 20-year lock-in at the current lower rate benchmark, and every subsequent RG&E rate increase improves your return. This is a structural argument for acting now rather than waiting for rates to rise.

How does Rochester's payback period compare to Buffalo and New York City?

Rochester’s estimated payback of approximately 9.68 years is longer than Buffalo’s 7.7 years and considerably longer than New York City’s 7.7 years. The reason is not the solar resource — Rochester and Buffalo receive similar peak sun hours in the 4.0–4.2 range, with similar seasonal patterns. The difference is the combination of RG&E’s 17¢/kWh rate (the same as National Grid’s Buffalo rate) and Rochester’s larger average system size driven by higher household consumption. In NYC, 31¢/kWh rates mean every kilowatt-hour of net metering credit is worth nearly twice as much as in Rochester, dramatically shortening payback even on expensive systems. In Buffalo, smaller 5kW systems cost less, so the same 17¢ rate achieves payback faster. Rochester’s larger, pricier systems take longer to recoup despite the same rate. However, the 25-year savings picture still shows substantial returns, and the pending RG&E rate increase — if approved — would shorten Rochester’s payback period and increase lifetime savings from systems already installed.

What does solar cost in Rochester and what incentives apply in 2026?

Rochester solar installations average approximately $2.74–$2.77 per watt based on EnergySage Marketplace data, comparable to Buffalo. Average system size is significantly larger — approximately 11.4–12.6kW — reflecting Rochester’s higher household electricity consumption. A 12kW system at $2.75/W costs approximately $33,000 before incentives. Monroe County’s local 4% sales tax applies to the full system cost (the state 4% is exempt, but the local portion is not), adding approximately $1,320 to the pre-incentive cost. After the Upstate NY-Sun rebate ($0.20/W = ~$2,400 on 12kW) and the NY State 25% tax credit (up to $5,000), net cost is approximately $25,000–$27,000 on a cash purchase. The RG&E CBC charge is $1.16/kW/month, approximately $13.90/month for a 12kW system. EnergySage projects payback at approximately 9.68 years with 25-year savings of approximately $37,000–$42,000.

Does Monroe County's sales tax exemption for solar differ from other New York counties?

Yes. New York State exempts solar equipment and installation from the state’s 4% sales tax statewide. However, the local sales tax exemption varies by county. Monroe County does not extend its local 4% tax exemption to solar purchases, meaning Rochester homeowners pay the full local 4% on solar system costs — only the state 4% is waived. Erie County, which includes Buffalo, provides full exemption covering both state and local sales tax. On a $30,000 Rochester system, the Monroe County local sales tax represents approximately $1,200 in additional out-of-pocket cost that would not apply in an Erie County installation. New York City (Westchester, the Bronx, Brooklyn, Queens, Staten Island, Manhattan) provides full combined exemption. The Monroe County local tax applies regardless of which installer you use — it is a county policy, not an installer choice. This should be clearly reflected in any Rochester installation contract as a line-item cost.

Can Rochester residents go solar if they rent or live in apartments?

Renters and residents of multifamily buildings without roof access cannot install rooftop solar, but community solar provides a practical alternative. New York has an active community solar market, and Monroe County has several projects available through NYSERDA’s NY-Sun community solar program. Community solar subscribers receive bill credits from RG&E at a discounted rate — typically 5–15% below retail — with no installation required, no roof needed, and no long-term ownership commitment. Subscribers sign up through a project developer, receive credits on their RG&E bill corresponding to their share of a remote solar farm’s output, and pay the project developer a slightly lower rate than the credit value, keeping the difference as savings. Rochester Community Power CCA participants can also subscribe to community solar and benefit from both programs simultaneously. Contract terms vary — look for programs with no cancellation fees and subscription terms that align with your housing plans.