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Apr 23 2025
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Puget Sound Energy Electric Rates Are Soaring — Here’s Why I’m Smiling

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In January, Puget Sound Energy (PSE) got approval to raise electricity rates by 18.6% over two years, beginning with a 12% increase to the average PSE customer’s bill in 2025.

This is a significant rate hike, and one that many PSE customers will feel when they open their bills this summer. But as a PSE customer myself, I couldn’t be more pleased with the news. Thanks to the solar panels installed on my roof, rising electricity rates increase my savings outlook, not my monthly expenses.

 

 

How PSE Rate Hikes Accelerate My Solar Savings

When I bought my solar system in 2022, I knew I was signing up for a long-term investment. With cloudy winters and cheap grid electricity, it takes more panels and more time to see a return on investment for rooftop solar in Washington than in most other states. In fact, my initial savings calculations showed a 14-15 year payback period based on electricity rates rising 3.5% per year on average, as they have historically.

But since my solar panels were installed, PSE rates have been rising much faster than 3.5% per year. And with the recently approved 18.6% rate increase for 2025 and 2026, I’m expecting to break even at least 2-3 years sooner and save at least $10,000 more over the 25-year warrantied life of my solar system. (That’s with the conservative assumption that rate hikes will normalize back to 3.5% per year after 2026).

Puget Sound Energy Rate Hikes Since 2023

Year Bill Increase
2023 8.7%
2024 1.7%
2025 12%
2026 6.3%

There’s plenty of reason to believe that PSE rates will continue their steep climb and my solar savings outlook will continue to improve. As a regulated utility, PSE makes money by spending money to build and maintain the electrical grid. And, in order to comply with the state’s clean energy goals, PSE needs to retire natural gas and coal plants and build an extraordinary amount of renewable energy generation by 2030.

That’s an expensive task — and new tariffs implemented in 2025 threaten to increase the cost of the materials required to do it. In order to maintain reliable electricity service — and preserve their profit margin — PSE will more than likely continue rising electricity rates faster than historical averages.

 

Explore Your Solar Savings Potential in Washington State

If you’re interested in powering your home with solar, 2025 is absolutely the best time to explore options for your home. PSE rates are rising fast and are likely to continue climbing throughout the decade.

Additionally, solar systems installed in 2025 may be the last to qualify for a 30% federal solar tax credit and Washington still offers 1:1 net metering that credits you for your excess solar power at the same rate you buy electricity from PSE.

Connect with a solar.com Energy Advisor to explore your home’s savings potential.

Apr 15 2025
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Ohio Electricity Rates Are Rising in June — Here’s How Solar Can Help You Save

By Solar Panel Cost, Solar Panel Costs by State No Comments

Why Are Ohio Electricity Bills Increasing in 2025?

Ohio residents are facing a significant increase in their electricity bills. This is primarily due to a recent capacity auction held by PJM Interconnection, which sets electricity supply rates that are passed on to homeowners through utilities. The auction resulted in a 2-cent per kilowatt-hour increase to supply rates. That’s an additional $20 per month for a typical Ohio household using 1,000 kWh per month.

In addition to higher supply rates, many Ohioans are facing higher distribution rates from their utility providers. For instance, FirstEnergy is proposing higher distribution rates for Illuminating Company, Ohio Edison, and Toledo Edison customers that would add up to $13 more to the average monthly bill.

Facing a double-whammy of rising electricity supply and distribution rates, Ohioans can benefit even more by producing their own electricity with solar panels.

Connect with a solar.com Energy Advisor to compare proposals from vetted solar installers and see your savings potential.

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Compare Electric Rates in Ohio: Utility vs. Rooftop Solar

With supply rates rising in June, the average residential electricity rate in Ohio is expected to climb to 18.5 cents per kWh, resulting in an average monthly bill of $185 for 1,000 kWh of usage.​

In contrast, the cost per kWh of electricity generated by rooftop solar panels in Ohio is typically around 6 to 8 cents.​

By installing solar panels, Ohio homeowners can effectively cut their electricity rate in half. Over time, these savings can add up significantly, especially as utility rates continue to rise. Here’s what that looks like over 25-year warrantied life of a solar system for an Ohio household using 1,000 kWh of electricity per month on average.

Electricity Source Monthly Payment Total cost over 25 years
Ohio Utility Grid $185 and rising with rate hikes $86,500*
Rooftop Solar (Financed with Loan) $156 flat payment $37,500**
Rooftop Solar (Cash Purchase) N/A $21,000

*Total based on utility rates rising 3.5% per year on average. **Based on 20-year loan with 6.5% interest rate.

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How Solar Panels Can Reduce Your Electricity Costs in Ohio

Installing solar panels on your home can be an effective way to mitigate rising electricity costs. Here’s how:​

1. Lower Monthly Bills

Solar panels generate electricity from sunlight, reducing the amount of power you need to purchase from the grid. This can lead to significant savings on your monthly electricity bills.​

2. Protection Against Rate Increases

By generating your own electricity, you’re less affected by utility rate hikes. This provides a level of financial stability and predictability in your energy costs.​

3. Net Metering Benefits

Ohio offers net metering, allowing you to receive credit for the excess electricity your solar system produces and feeds back into the grid. These credits can offset future electricity usage, further reducing your bills.​

4. Increase Home Value

Homes equipped with solar energy systems often have higher property values and are more attractive to buyers.

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Understanding Solar Incentives in Ohio

Ohio residents can take advantage of several incentives to make solar installation more affordable:​

  • Federal Solar Tax Credit: Homeowners can claim a federal tax credit for 30% of the cost of installing a solar energy system.​

  • State and Local Programs: Various programs may offer rebates or other financial incentives for solar installation.​

  • Net Metering: As mentioned, net metering allows you to earn credits for excess energy produced.

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Taking the Next Step Toward Energy Independence

With Ohio electricity rates on the rise, now is the best time to consider solar energy for your home. Investing in solar puts you in control of your electricity costs and shields you from rising energy costs.​

Connect with an Energy Advisor to explore your options and savings potential. Our team is here to guide you through the process and help you make an informed decision about going solar in Ohio.