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New Englanders from Bar Harbor to the Berkshires are seeing sharp rises in electricity prices. These price increases have outpaced overall inflation. 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 rates reflect a variety of costs associated with the generation of the electricity we consume and the delivery of that electricity to our homes. In short, there is upward pressure on every major component of electricity rates, which means bills for most consumers will continue to rise in the years ahead. There are a variety of key contributors to recent and forecast price increases.
But it’s not all bad news: renewable energy provides 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 prices and from the rising costs of delivering electricity from distant generators. 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 means less need to invest in new system capacity and less 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 more detailed look at trends shaping your electric bill:
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’s reasons for increasing rates reflected several of the themes we’ve touched on, among them: challenges retaining personnel for storm recovery, aging infrastructure that needs to be replaced, and “changing weather patterns with frequent winter and summer storms with significant impact.” The effect on rates is significant; 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 approximately $214 million in storm costs, up from $155 million the year prior. These costs represent more than 1/3 of CMP’s total 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 address storm impacts and harden the grid against future 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 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 project cost to replace aging poles and lines across this system. In 2024, New England paid $3 billion in transmission costs, representing 30% of wholesale electricity costs. Beyond the “asset condition” projects which affect 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 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 reach extremes 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 trends in gas prices impact our monthly electric bills. In New England, 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 Default Service charges New Hampshire customers pay for electricity supply:
Gas generation faces obstacles to serving the growing load, including the 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 any new plants.
As more people 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. Naturally, 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 – provided that we can build the clean, low-cost energy needed to meet this 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, the federal government has set new obstacles to the diversification of our electricity generation.
The administration’s policies are hindering the development of new resources to supply growing electricity demand. Policy changes extend well beyond the rollback of tax credits for solar and wind, and will unfortunately 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. Although the solar industry has certainly taken a hit, recent federal actions have proven even more disruptive to wind development. As the New England grid operator recently highlighted, the interference with major offshore projects risks creating reliability challenges. Delays in the deployment of this source of high-capacity, renewable generation also means higher prices for the region. And shows critical need for solar and storage deployment to accelerate in filling the gap.
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. Market trends make clear that electricity prices will continue to rise, and this means that a solar project makes even more sense to do as soon as possible.
Want to take control of your own electric rate? Start your solar journey.