{"id":11995,"date":"2025-04-15T20:44:49","date_gmt":"2025-04-15T20:44:49","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11995"},"modified":"2025-04-15T20:48:42","modified_gmt":"2025-04-15T20:48:42","slug":"ohio-electric-rates-are-rising","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/ohio-electric-rates-are-rising\/","title":{"rendered":"Ohio Electricity Rates Are Rising in June \u2014 Here’s How Solar Can Help You Save"},"content":{"rendered":"

Why Are Ohio Electricity Bills Increasing in 2025?<\/h2>\n

Ohio residents are facing a significant increase in their electricity bills.<\/span> 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.<\/span> 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.<\/p>\n

In addition to higher supply rates, many Ohioans are facing higher\u00a0distribution rates<\/em> from their utility providers. For instance, FirstEnergy is proposing higher distribution rates<\/a> for Illuminating Company, Ohio Edison, and Toledo Edison customers that would add up to $13 more to the average monthly bill.<\/p>\n

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

Connect with a solar.com Energy Advisor<\/a> to compare proposals from vetted solar installers and see your savings potential.<\/p>\n

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Compare Electric Rates in Ohio: Utility vs. Rooftop Solar<\/h2>\n

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.\u200b<\/p>\n

In contrast, the cost per kWh<\/a> of electricity generated by rooftop solar panels in Ohio is typically around 6 to 8 cents.\u200b<\/p>\n

By installing solar panels, Ohio homeowners can effectively cut their electricity rate in half.<\/span> Over time, these savings can add up significantly, especially as utility rates continue to rise. <\/span>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.<\/p>\n\n\n\n\n\n\n
Electricity Source<\/td>\nMonthly Payment<\/td>\nTotal cost over 25 years<\/td>\n<\/tr>\n
Ohio Utility Grid<\/td>\n$185 and rising with rate hikes<\/td>\n$86,500*<\/td>\n<\/tr>\n
Rooftop Solar (Financed with Loan)<\/td>\n$156 flat payment<\/td>\n$37,500**<\/td>\n<\/tr>\n
Rooftop Solar (Cash Purchase)<\/td>\nN\/A<\/td>\n$21,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Total based on utility rates rising 3.5% per year on average. **Based on 20-year loan with 6.5% interest rate.<\/em><\/span><\/p>\n

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How Solar Panels Can Reduce Your Electricity Costs in Ohio<\/h2>\n

Installing solar panels on your home can be an effective way to mitigate rising electricity costs.<\/span> Here’s how:\u200b<\/p>\n

1. Lower Monthly Bills<\/strong><\/h3>\n

Solar panels generate electricity from sunlight, reducing the amount of power you need to purchase from the grid.<\/span> This can lead to significant savings on your monthly electricity bills.<\/span>\u200b<\/p>\n

2. Protection Against Rate Increases<\/strong><\/h3>\n

By generating your own electricity, you’re less affected by utility rate hikes.<\/span> This provides a level of financial stability and predictability in your energy costs.<\/span>\u200b<\/p>\n

3. Net Metering Benefits<\/strong><\/h3>\n

Ohio offers net metering, allowing you to receive credit for the excess electricity your solar system produces and feeds back into the grid.<\/span> These credits can offset future electricity usage, further reducing your bills.<\/span>\u200b<\/p>\n

4. Increase Home Value<\/strong><\/h3>\n

Homes equipped with solar energy systems often have higher property values<\/a> and are more attractive to buyers.<\/span><\/p>\n

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Understanding Solar Incentives in Ohio<\/h2>\n

Ohio residents can take advantage of several incentives to make solar installation more affordable:<\/span>\u200b<\/p>\n