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New Englanders from Bar Harbor to the Berkshires are seeing sharp rises in electricity prices. These cost increases have outpaced overall inflation, leaving homeowners struggling with their budgets. We asked ReVision Energy Director of Regulatory & Utility Affairs, Nat Haslett, to explore the reasons behind these increased rates – and how solar can ease that burden.
written by Nat Haslett
Electric bills keep going up, stretching household finances thinner each year. To understand what’s really driving those costs, we need to look beneath the surface at the mix of storm impacts, old infrastructure, volatile fuel prices, and shifting policy. Together, these factors are placing upward pressure on every major component of electricity rates, which means bills for most consumers will continue to rise in the years ahead. Among the most significant drivers:
But it’s not all bad news: renewable energy contributes solutions to these problems, both individually on residents’ electric bills, and at the regional grid level. By installing solar at your home, you can lock in a low electric rate for decades to come, insulating your household from volatile natural gas markets and from the rising costs of delivering electricity from distant power plants. Even if your solar array doesn’t cover 100% of your home’s energy needs, you will still benefit from a majorly reduced bill for the 25+ year lifespan of the solar system.
On a broader scale, more solar means a more distributed, diversified energy supply that reduces strain on the grid during periods of peak demand. This distributed generation reduces the need to invest in new grid capacity and lowers our reliance on costly, polluting peaker plants. The savings that result from this distributed generation were evident during this summer’s heat wave when New England rooftop solar produced 18% of the 26,000 MW needed to keep New Englanders cool.
So why are we still seeing electricity prices rise? Let’s take a closer look at trends shaping your electric bill.
Recent utility requests for rate changes offer insight into factors affecting the costs of managing the network of poles and wires that bring electricity to our homes. Eversource New Hampshire was approved to raise distribution rates by 8% on August 1, which followed a rate increase of about 14% the year prior. Eversource highlighted six key trends driving the need for higher rates, including: challenges staffing storm restoration efforts, aging infrastructure that needs to be replaced, and “changing weather patterns with frequent winter and summer storms with significant impact.”
The science is clear that we can expect more severe storms in the years to come. In heavily forested New England, this means significant potential for storm recovery to continue pushing rates higher. Separate from the August 1 price change, Eversource’s requests to recover over $400 million of storm costs incurred between 2022-2024 remain under review.
Central Maine Power (CMP) raised rates on July 1, partly to recover over $210 million in storm costs, up from $155 million the year prior. These costs represent more than 1/3 of CMP’s distribution revenue requirement and, by our estimates, about 10% of an average residential customer’s monthly bill.
In the same month, CMP filed notice that it will seek to increase its distribution revenue requirement by between $405-455M over five years beginning in 2026. Again, investments to improve storm recovery and harden the grid against future storm damage are a major factor behind the proposed rate increase. We are a long way from a final outcome in the review of CMP’s proposed rate changes, but the request points to the continued climb in distribution rates we can expect in coming years.
Our electric bills also support the upkeep of the high voltage lines that transmit power across New England and into the region from our neighbors. In recent years, we have seen a notable rise in the annual cost of projects to replace aging poles and lines within this system. In 2024, New England paid $3 billion in transmission costs, representing almost 30% of wholesale electricity costs. Beyond the “asset condition” projects affecting electricity prices in the near term, long-term forecasts show that costs will continue to rise as demand for electricity and transmission capacity grows. These same studies illustrate the critical value of solar, storage, and other distributed energy resources that can lower peak demand and, by extension, lower the amount of new transmission capacity required.
Because natural gas plants are the dominant source of generation in the New England wholesale electricity market, the price of natural gas is a key factor in setting the cost of the supply portion of our bills. We saw prices spike after Russia’s invasion of Ukraine in 2022. Prices have fallen from those highs, but market fundamentals point to a sustained increase in the cost of natural gas as exports grow faster than new supply.
These global moves in gas prices impact our monthly electric bills. In New England, average natural gas prices in July 2025 were 131% more costly than in July of 2024. As gas prices rise, the cost of electricity also increases. This effect is apparent in recent increases in the Default Service charges many New Hampshire customers pay for electricity supply:
Gas generation faces obstacles to serving growing load, including limited supply of gas into the region and a significant backlog in turbine availability. The same tariffs that have affected the cost of upgrades to the electric delivery system have also increased the cost of constructing new power plants.
As more homes and businesses transition to electric heating and electric transportation across New England, our demand for electricity will only increase. Heat pumps are more efficient and cost-effective than other forms of heat, and electric vehicles require less maintenance and provide a smoother ride. Both of these markets have taken off in recent years, and they are expected to contribute to an 11% increase in net electricity consumption in New England over the next 9 years. This electrification can help lower the cost of the electric grid for all ratepayers by distributing fixed costs over more kWh. But this beneficial outcome depends upon our ability to build the clean, low-cost energy needed to meet growing demand.
Despite the clear need for investment in more generation and the proven track record of renewable energy in delivering cost savings to the grid, recent policy changes have set new obstacles to the diversification of our electricity supply.
Especially notable are the federal administration’s attempts to hinder the development of the very new resources best positioned to supply growing electricity demand. These moves extend beyond the rollback of tax credits for solar and wind. From the termination of programs dedicated to broadening low-income access to solar to the imposition of higher tariffs on steel and other materials, recent actions impact all ratepayers.
According to a recent economic impact study, household energy costs are expected to increase $170 annually by 2035 as a result of the recent budget bill. And wholesale electricity prices are expected increase 25 percent by 2030. The solar industry has certainly taken a hit, and recent federal actions have proven even more disruptive to wind development. As the New England grid operator recently highlighted, the interference with major offshore wind projects risks creating reliability challenges. Delays in the critical deployment of this source of renewable generation also means higher prices for the region.
These impacts point to the urgent need for states to step up in unlocking the deployment of distributed solar and storage to fill the gap. Massachusetts just set a great example in doubling the 2025 capacity cap under its updated SMART program.
We have the solutions needed – to fight the climate crisis, to reduce our monthly electric bills, to reduce strain on the grid. Every solar panel installed on a home or business helps. It helps your bank account, it helps your neighbors, and it helps all New England ratepayers. And as market trends make clear that electricity prices will continue to rise, there is even more reason to invest in a solar project as soon as possible.
Want to take control of your own electric rate? Start your solar journey.