Why Your Con Edison Rate Plan Matters More After a Mini Split Install

If you’ve already installed a mini split heat pump in your NYC apartment, brownstone, or co-op unit, switching to the right Con Edison heat pump rate plan NYC is the single fastest way to cut your monthly electric bill without touching the equipment. The problem is that almost nobody does it. According to a July 2025 coalition filing by the Environmental Defense Fund, Rewiring America, and the Alliance for a Green Economy, despite 43,852 heat pump installations through Con Edison’s Clean Heat program, only 425 heat pump customers had enrolled in the designated heat pump rate, fewer than 1%. The same coalition estimates that heat pump customers could collectively be overcharged by up to $131 million over the rate period, and that switching to a simpler, correctly structured rate could save a typical customer roughly $439 to $509 per year.

This post untangles the confusing rate names, gives you a plain-language comparison table, tells you exactly who qualifies, and walks you through enrollment step by step. It also covers the NYC-specific wrinkle that most national guides miss: sub-metered co-op and condo owners can’t just call Con Edison and switch the way a direct-metered brownstone owner can.

What Are the Con Edison Rate Plans a Heat Pump Owner Can Choose?

Con Edison offers four rate structures relevant to residential heat pump owners. Three names circulate for essentially the same heat-pump-friendly plan, the tariff name is SC1 Rate IV, the older consumer-facing name is the Select Pricing Plan, and the current name on coned.com is the Steady Use Rate. They refer to the same lineage of demand-based rate. Today, when you call Con Edison or fill out an online form, you ask for the Steady Use Rate.

The bottom line: for the vast majority of NYC heat pump owners, the Steady Use Rate (SC1 Rate IV) is the right switch. Con Edison itself states on its rate-guide page that this plan “may be a good fit if you are a residential customer using a heat pump to heat and/or cool your home and keep your thermostat at a steady temperature.”

How Much Can the Steady Use Rate Actually Save You in NYC?

Con Edison’s own 2023 SC1 Rate IV assessment found that 83.2% of air-source heat pump customers enrolled in the plan saved money on their bills. For ground-source heat pump customers, that figure rose to 88%. Per-borough savings data from the same assessment showed savers in every borough, with 100% of enrolled Bronx customers coming out ahead, and Brooklyn showing the lowest rate at 77.8%, still a strong majority.

On average, heat pump users save roughly 10% on electricity by switching to the Steady Use Rate compared to the Standard Electric Rate, according to Con Edison’s air-source heat pump incentive page. Ground-source heat pump users have averaged around 20% in savings. In dollar terms, with Con Edison rates in NYC running roughly 22 to 38 cents per kWh including delivery, a household spending $400 to $600 per month on electricity during peak heating season could save $40 to $120 per month on the right plan. One documented case on coned.com shows a New York resident saving $640 a year after switching.

The 12-Month Price Guarantee: What It Means and Why It Removes All Risk

The Steady Use Rate comes with a 12-month price guarantee that most enrollees don’t know about. After your first 12 months on the plan, Con Edison compares what you actually paid against what you would have paid on the Standard Electric Rate. If you paid more on the Steady Use Rate, Con Edison credits you the difference on your next bill. You pay nothing extra, you either save money or break even.

There is one important catch: you can cancel the Steady Use Rate at any time without penalty, but if you opt out, you cannot re-enroll for 18 months. That 18-month lockout is the main reason to be thoughtful before signing up and then abandoning the plan after a bad month.

Who Qualifies for the Steady Use Rate in NYC?

The basic requirements are straightforward. Any Con Edison residential customer with a smart meter can enroll. Con Edison has been rolling out smart meters (also called AMI meters) across its NYC territory, so most accounts added in the last several years already have one. If you’re not sure, check your MyAccount dashboard or call Con Edison at 1-212-358-3790.

Two groups who should not switch to the Steady Use Rate:

• Solar or net-metering customers. Con Edison’s own guidance states that solar or net-metering customers are “likely not a good fit” for the Steady Use Rate, the Standard Rate or Time-of-Use Rate may serve you better.
• SmartCharge New York EV program participants. Enrolling in the Steady Use Rate automatically removes you from the SmartCharge New York program for EV drivers. If you’re earning credits through that program, weigh the tradeoff before switching.

The NYC Co-op and Condo Wrinkle: Sub-Metered vs. Direct-Metered

This is the nuance that no national guide covers. In NYC, your ability to switch rate plans depends entirely on how your unit is metered.

If you live in a sub-metered co-op or condo and have installed a mini split, your board’s managing agent needs to explore whether the building’s master SC1 account is on the most favorable rate structure. This is a conversation worth bringing to the next board meeting, especially if multiple shareholders have recently added heat pumps. For more on how co-op and condo boards can navigate energy cost decisions after a heat pump conversion, see our guide on J-51 Tax Abatement for Heat Pump Conversions in NYC Co-ops and Condos.

How to Enroll in the Con Edison Steady Use Rate: Step by Step

1. Confirm you have a smart meter. Log into MyAccount at coned.com. Under account details, your meter type will be listed. Alternatively, call 1-212-358-3790.
2. Check the Bill Comparison Tool first. Once you have at least one bill in MyAccount, navigate to “Billing History & Assistance” and use the Bill Comparison Tool. It models what your last 12 months would have cost on each rate plan, the single most useful step before committing.
3. Fill out the enrollment form. The Steady Use Rate enrollment form is on coned.com under Accounts & Billing. Enrollment takes effect on your next billing cycle.
4. Set your mini split to a steady setpoint. The rate rewards steady, distributed load. A constant 68–70°F in winter and 74–76°F in summer is the right operating mode, not aggressive temperature swings or full off-overnight patterns.
5. Stagger large appliances. Don’t run the dishwasher, laundry, and mini split at full demand simultaneously during the noon–8 pm peak window. Shift those loads to evenings or early mornings.
6. After 12 months, review your credit. Log into MyAccount and check your billing history. If you paid more on the Steady Use Rate than you would have on standard, Con Edison applies a credit automatically. If you saved, you’re done, the plan continues until you opt out.

Why the Old SC1 Rate IV Had a Reputation for Being Complex

Earlier versions of the demand-based rate (sold under the Select Pricing Plan name) were confusing because the demand charge was calculated using your peak hourly draw during set daily windows, a concept most residential customers had never encountered. The worry was that one very cold January day with the heat pump running hard would spike your demand charge and wipe out a month of savings.

The current Steady Use Rate simplifies this by rewarding customers for spreading usage more evenly and for shifting load off-peak, rather than penalizing a single high-demand interval as harshly. Still, the underlying mechanic means erratic usage, cycling the heat pump off at night and blasting it in the morning, is worse on this rate than on standard. Running the system as mini splits are designed to run (consistent setpoint, low modulating compressor load) is precisely what makes the plan work.

This is also why properly sizing your system matters before you think about rate plans. An oversized mini split that short-cycles delivers worse demand profiles and worse efficiency. If you’ve ever wondered whether your current setup is sized right, our guide on the Con Edison Electrical Service Upgrade for a Heat Pump in NYC covers load calculations and what to ask your installer.

Pairing the Rate Switch With Other Con Edison Programs

The Steady Use Rate isn’t the only lever. Two programs pair well with it, and one conflicts.

• Smart thermostat enrollment (Smart Usage Rewards): Con Edison pays an $85 rebate for enrolling a compatible smart thermostat. The Wi-Fi thermostat also lets you automate peak-hour setbacks with precision, reinforcing the steady-load behavior the Steady Use Rate rewards. Note that this is separate from, and compatible with, the Steady Use Rate.
• EAP, EEAP, and HEAP affordability programs: Con Edison is expanding bill assistance tiers in 2026. If you’re income-eligible, stack these with the rate switch for the largest bill reduction. Check coned.com for current eligibility thresholds.
• SmartCharge New York (EV program): Enrolling in the Steady Use Rate automatically removes you from SmartCharge NY. If you drive an EV and earn meaningful credits there, run the Bill Comparison Tool numbers on both scenarios before switching.

For a full picture of what Con Edison offers on top of rate switching, see our overview of the Con Edison Energy Exchange Program and how to stack it with a heat pump installation.

Common Mistakes to Avoid

• Staying on Standard Rate by default. Con Edison does not automatically move heat pump owners to the most favorable plan. You must opt in. Every month you don’t is money left behind.
• Switching and then immediately opting out. If you cancel the Steady Use Rate, you’re locked out of re-enrollment for 18 months. Use the 12-month price guarantee to let it run, you get a credit if it doesn’t save you money.
• Switching to Steady Use Rate while on solar/net metering. Con Edison explicitly says this pairing is a poor fit. Use the Time-of-Use Rate or Standard Rate if you have solar.
• Running the mini split in erratic bursts. Aggressive temperature setbacks overnight followed by rapid reheating in the morning create demand spikes that undermine the Steady Use Rate’s demand structure and reduce equipment efficiency.
• Assuming sub-metered co-op residents can switch individually. If your electricity flows through a building master meter, you don’t have a direct Con Edison account to switch. Talk to your board, don’t waste time trying to enroll online.
• Not using the Bill Comparison Tool before enrolling. Con Edison provides this tool in MyAccount specifically so you can model savings on your actual usage history. Skipping it means you’re guessing.
• Ignoring the SmartCharge NY conflict. EV owners who enroll in the Steady Use Rate are automatically removed from SmartCharge New York. Check both programs before switching.

Frequently Asked Questions

What is the Con Edison Steady Use Rate, and is it the same as the Select Pricing Plan?

Yes. The Steady Use Rate is the current consumer-facing name for what Con Edison previously called the Select Pricing Plan. The formal tariff designation is SC1 Rate IV. All three names refer to the same demand-based residential rate plan. When you call Con Edison or use the online form, ask for the Steady Use Rate.

Do I need a smart meter to enroll in the Steady Use Rate?

Yes. Con Edison requires a smart meter (AMI meter) to enroll. Most accounts established in the last several years already have one. Check your MyAccount dashboard or call 1-212-358-3790 to confirm. If you need a smart meter installed, Con Edison can arrange it at no cost.

What happens if the Steady Use Rate doesn’t save me money?

After 12 months, Con Edison compares your actual Steady Use Rate charges against what you would have paid on the Standard Electric Rate. If you paid more on the Steady Use Rate, Con Edison credits you the difference automatically. You take on zero financial risk during that first year.

Can I switch rate plans if I live in a sub-metered NYC co-op or condo?

Not individually. If your unit is sub-metered through a building master meter, Con Edison bills the building, not you directly. You don’t have your own Con Edison account number to switch. The rate plan question must be raised at the board level. Only direct-metered units (with their own Con Edison account) can enroll in the Steady Use Rate independently.

How do I know which rate plan I’m currently on?

Log into MyAccount at coned.com. Your current rate plan is listed under account details. You can also use the Bill Comparison Tool under “Billing History & Assistance” to see how your last 12 months of usage would have been charged on each available plan. This is the single most important step before making any switch.