11/26/2025
The CBC charge was in effect for a very short period of time and then was being fought and challenged the last 2 years.
It’s BS if you ask me but no clue how to avoid it.
The CBC charge you're seeing on your LIPA (PSEG Long Island) bill stands for Customer Benefit Contribution charge.
Here is a breakdown of what it is and why it's being implemented:
💡 What is the CBC Charge?
The Customer Benefit Contribution (CBC) charge is a fixed monthly fee applied to residential and small commercial customers who installed and interconnected solar PV systems on or after January 1, 2022.
• It is calculated based on the size of your solar system in DC kilowatts (\text{kW}), not on the amount of energy you use from the grid.
• This charge is mandated by the New York Public Service Commission (PSC) and applies to utilities across the state, including LIPA/PSEG Long Island.
💰 Why is LIPA Charging the CBC?
The CBC charge was implemented to address a perceived "cost shift" from solar customers to non-solar customers regarding the funding of certain public benefit programs.
1. Funding Public Benefit Programs: Electric bills, in general, include charges that fund various public benefit initiatives. These programs include:
• Low-income customer assistance programs.
• Utility energy efficiency and clean energy programs (like NY-Sun).
2. Addressing the "Cost Shift":
• Prior to the CBC, these public benefit programs were primarily funded through volumetric charges (meaning you pay based on the amount of electricity you use/buy from the utility).
• Solar customers who use Net Energy Metering (NEM) buy less energy from the utility, and in some cases, sell excess back, meaning their volumetric charges are significantly reduced or eliminated.
• Regulators determined that these customers were no longer contributing their "fair share" to the public benefit programs, causing the costs to be shifted to non-solar customers.
3. The CBC Solution: The CBC is designed to ensure that solar customers contribute to these programs at a level that is roughly equal to what they would have contributed if they did not have solar.
The charge is calculated and set by the utilities annually and is based on your solar system's size to ensure an adequate contribution to these programs.
In summary: LIPA did not suddenly implement it; it has been in effect for new solar systems since January 1, 2022, as part of a state-wide regulatory change.
Would you like to know the current LIPA CBC rate per \text{kW}-month for your type of system?
