Utility Alert: PSEG LI Rate Increased Again in February 2026

Despite the Long Island Power Authority predicting lower bills in 2026, residents have faced two rate hikes so far. A moderate 3.39% increase in January was followed by a 13.23% Power Supply Charge spike in February. Long Island households already pay some of the highest electricity rates in the nation. This latest hike is a timely reminder that there is a better option to power your home.

Details on the PSEG Rate Hike in 2026

The Power Supply Charge is tied to market fuel costs. When the cost of electricity generation increases, your bill goes up. At the beginning of February, PSEG LI increased its rate, making standard billing less affordable, and making Time-of-Day (Rate 194) plans particularly expensive between the 3 PM and 7 PM peak window.

You Can Pay Less for Electricity with a Long Island Solar Panel Installation

Long Islanders fatigued by the constant rate hikes can find relief with solar energy. Rooftop solar panels are a significant investment, but they are the only proven way to significantly offset energy costs and reclaim energy independence.

Long Island solar works by generating free electricity and reducing the amount of energy you take from the grid.

• During the day, solar panels power the home. Excess energy is sent to the grid. This spins the meter in reverse to help offset future energy consumption.
• Long Island is a Net Metering region. Excess production can be banked to offset long-term energy consumption. For example, high production during summer days will help to cover winter days that are shorter with less direct sunlight.
• Homeowners can save even more with the addition of a solar battery. This can store electricity during the day and deploy it during peak times.

Long Island regulators have long sought solutions to decrease the cost of electricity for families. The unfortunate reality is that fuel and distribution are getting more expensive. Rate hikes and inflation make energy less affordable overall.

Solar energy is predictable and consistent. Solar panels can provide savings over a 25-year lifetime. With current costs and incentives, solar panels can pay for themselves within the first 8 to 10 years.

A New York State Solar Tax Credit Makes Solar More Affordable

You may know that the 30% federal tax credit for solar expired on December 31, 2025. While that incentive is gone for privately owned systems, Long Island residents still have a powerful local advantage that makes solar worth it in 2026:

• The $5,000 New York State Tax Credit: There’s still a 25% state tax credit for solar and battery installations, capped at $5,000.
• Carry-over Protection: If you don’t use the full credit in the first year, you can carry it forward for up to 5 years.
• The Ownership Advantage: Even without the federal credit, owning your system beats leasing. If you add a solar battery, you could join the PSEG Battery Reward program, offering up to $6,250 in a direct incentive (based on the size of the battery).

Ask for Your Free Estimate from the Best Long Island Solar Installer

Power Solutions is rated one of the top solar installers on Long Island. You can request a free ballpark solar estimate online today. We will follow up with a detailed consultation and your transparent cost/benefit analysis.

Electricity is more expensive than ever. Installing solar panels gives you control over your home’s energy spending. Contact Power Solutions today and see how much you could save when you make the switch.