Across the Mid-Atlantic, a new wave of utility rate increases is on the horizon—and they’re unlike anything we’ve seen before. Due to recent developments in PJM’s energy capacity market and changes in how energy is generated and managed, households in our region can expect their electric bills to jump by $14 to $21 per month starting in June 2025, depending on their utility provider and location.
At Lumina, we believe homeowners deserve to be informed, empowered, and protected from these unpredictable increases. In this article, we’ll break down what these market changes mean for your household and how you can shield yourself from these steep and unexpected rate hikes.
What’s Causing These Utility Price Hikes?
The spike in electricity rates is largely due to PJM Interconnection’s 2025/2026 capacity auction, which ensures there’s enough power generation to meet demand. The results of this year’s auction sent shockwaves through the Mid-Atlantic. Prices jumped more than 800% from last year—from $29/MW-day to $270/MW-day across the region, and a staggering $466/MW-day in the Baltimore Gas and Electric (BGE) zone, the highest allowed by law.
Why the drastic increase?
- Retirement of Fossil Fuel Plants: Aging power plants like Brandon Shores and Wagner in Maryland are shutting down. But instead of simply being retired, these plants will continue operating under expensive “Reliability Must Run (RMR)” contracts to keep the grid stable—costs that are passed directly to you, the customer.
- Outdated Infrastructure: Until new transmission upgrades are completed—likely not until late 2028—customers will shoulder the bill for keeping these old plants online.
- Decreased Capacity Supply: With fewer plants available in the competitive energy market, supply dropped sharply, driving prices up even further.
What Does This Mean for You?
Here’s a breakdown of what the average homeowner can expect:
- BGE (Baltimore area): +$21/month
- Pepco (DC suburbs): +$14/month
- DPL-South (Delmarva Peninsula): +$4/month
These increases add up to $250 or more annually, and there’s no guarantee they’ll stop there. As PJM noted, these prices are likely to remain high through at least 2028 unless major changes happen to the energy grid.
Shield Against Rising Utility Bills
There’s a powerful solution available that is already helping thousands of homeowners across our region. Solar energy offers long-term savings, energy independence, and protection from utility rate volatility. Instead of paying more every year for the same electricity, solar empowers you to generate your own clean energy and take control of your monthly bills.
One Lumina customer recently shared on Facebook about their system’s performance, calling solar “a nice way to diversify using money I’d be spending on my electric bill anyway.” Their data shows:
- Annual production: ~15.2 MWh
- Annual value of electricity generated: ~$2,950
- Solar Renewable Energy Credit (SREC) earnings: $474/year
- Return on investment (ROI): 8.9–9.9%—higher than the stock market, with none of the volatility
- Depreciation: Minimal—panels degrade only ~0.5% per year, and are expected to last 40+ years
They financed their system with zero money down, and the monthly loan payments nearly matched the drop in their electric bill. After 10 years, they’ll own the system outright and enjoy decades of free electricity.
“Solar is much more predictable… We’re paying down our loan faster than required. At the end of the day, it’s a great investment—and it cost us literally nothing up front.”
This homeowner, like many others, chose Lumina for our full-service approach—financing, permitting, installation, and support, all handled by a trusted local team.
Don’t Wait Until the Rates Hit Your Wallet
With utility bills poised to rise dramatically, now is the time to take control of your energy future. Investing in solar can lock in long-term savings, protect against unpredictable rate hikes, and increase your home’s value. And with federal tax credits still in place, there’s never been a better time to make the switch.If you’ve been on the fence about solar, let’s talk. We’d love to show you what solar could look like for your home—with real numbers, local examples, and no pressure.
