The 2026 Oil Crisis Helps Highlight the Importance of Solar Panels at Home

The conflict in Iran and the closure of the Hormuz Strait, a key passage for global oil shipments, have led to a global surge in oil prices and increased costs for byproducts. West Texas Crude, a major benchmark, surpassed $100 per barrel earlier this month. Prices have since relaxed, but are still almost double the 52-week low.

On Long Island, we’re already feeling the effects at the pump. We might also see an increase in electricity costs in the most extreme scenario. The electricity on PSEG’s grid is primarily derived from Natural Gas, but the plants at Northport, Port Jefferson, and Island Park are all configured for dual-fuel operation. During extreme cold snaps, like we saw this past winter, these plants burn fuel oil to keep the lights on, while freeing up natural gas for heating. When oil prices are high, electricity indirectly becomes more expensive.

As a homeowner, you don’t have direct control over the cost of oil, but you do have control over how much you pay for electricity. Long Island solar panels are an option for your home that will give you independent and affordable energy. Rather than being at the mercy of PSEG and all the factors that drive energy pricing, you can effectively lock in predictable electricity costs with solar panels that pay for themselves over time.

How Long Island Solar Panels Protect You from Unstable Energy Prices

Solar panels are predictable. With a detailed cost/benefit analysis, you can see potential savings over time to determine if solar is worth it in your unique case.

Solar panels save you money by reducing your reliance on the grid.

• During the day, your home will take electricity from your solar panels first.
• Excess electricity goes out to the grid. Your meter runs backward.
• When you consume electricity in the evenings, that energy you exported will help to cover the difference.

On Long Island, we call this Net Metering. You generate electricity. The excess goes out. You use the difference to help cover consumption at night (and on low-solar days), and you are only billed the “net” amount. If you produce more electricity than you can consume in a month, your bill will only show a small connection fee (The Customer Benefit Contribution or CBC charge), and the surplus will carry over.

You’re no longer a consumer of energy with this system. You’re a producer with more control over your finances and energy needs.

New York State Offers Tax Credits for Solar Panels

As a Long Island resident, you are eligible for the New York State Solar Tax Credit. This can significantly reduce the actual cost of installing solar panels.

• Known officially as the Solar Energy System Equipment Credit, this Tax Department credit is worth 25% of your solar installation bill, up to a maximum of $5,000. It is a dollar-for-dollar credit that will reduce your tax bill.
• It can be applied to the total bill, including solar equipment, labor, and related systems, such as a battery energy storage system.
• The credit is non-refundable, but it can be carried over for up to five years. If the credit exceeds your state tax liability, you can claim it again in subsequent years until it is consumed.

This credit is available for ownership of solar panels, so it isn’t available for solar rentals and community solar programs. It’s exclusively for homeowners who buy their solar panels outright (or finance them).

How to Get Your Free Home Solar Estimate in Suffolk or Nassau County

Power Solutions is your local solar panel installer. We serve all of Long Island, including Suffolk and Nassau Counties. You can learn more about solar without any risk or obligation.

• Request your ballpark solar estimate online. Initial figures are based on satellite data.
• We will contact you for a detailed consultation and proceed with a site evaluation and cost/benefit analysis when you’re ready.
• Power Solutions has connected thousands of families and businesses to solar.

You can claim your energy independence with solar panels on Long Island. Fuel prices and inflation are minimized when you produce your own electricity on your rooftop. Contact Power Solutions at (631) 348-0001 and take the first step toward predictable bills and long-term savings.