Electric Bills Are Rising Again in 2026
If your electric bill felt higher last month, it’s not just you. Residents across Greater Philadelphia have seen electric costs rise over the past two years, and additional increases are already scheduled for 2026.
Turning the lights off more often or keeping the thermostat a little lower no longer seems to make the same difference it used to.
For most households, that raises a frustrating question. Why does electricity keep getting more expensive?
The short answer is that electric prices are rising across the region, and much of it is happening behind the scenes. Decisions made at the regional grid level and long-planned utility upgrades are now appearing on monthly bills across Greater Philadelphia.
And the increases are not over. Additional rate hikes are already scheduled for 2026, meaning PECO customers will see their bills climb again over the next year.
Understanding what is driving these increases can help explain why electric costs feel so unpredictable, and why more Greater Philadelphia residents are starting to look for ways to escape the endless cycle.
What Is Driving PECO Electric Rate Increases?
PECO does not operate in isolation. It is part of a regional electric grid managed by PJM Interconnection, which oversees electricity planning and reliability for 13 states and Washington, D.C., including Pennsylvania.
Each year, PJM runs a “capacity auction” to ensure there will be enough power available during the most extreme days of the year, such as heat waves and cold snaps. Power plants and energy providers are paid simply to be available when needed, and utilities like PECO are required to purchase that capacity on behalf of their customers.
PJM Interconnection just ran its next auction for 2026, and prices have jumped again, with PJM estimating its auction will increase electric bills by an additional 1.5% to 5% starting next summer. That means two things:
- Electricity prices have increased for two straight years.
- There’s little reason to believe this trend will slow down.
Because PECO must pass these costs on to its customers, you end up paying more even if you use the same amount of electricity.
PECO’s Approved Rate Increases Add to the Pressure
Source: PA.gov
In addition to PJM-driven supply increases, PECO received approval from the Pennsylvania Public Utility Commission for a $464 million rate increase that went into effect in January 2025.
This increase raised the average PECO customer’s bill by about 12.3 percent in 2025 and will raise bills again by roughly 1.7 percent per month in 2026.
Importantly, this increase primarily affects delivery and infrastructure costs, not supply. That means even if wholesale energy prices stabilize, delivery charges would continue rising due to grid upgrades, maintenance, and long-term investment needs.
When combined with PJM capacity costs, most customers can expect total electric bills to increase by 5 to 7 percent in 2026 alone.
Why Electric Rates Rarely Go Back Down
Electricity is different from most household expenses. You have limited rate options, you cannot opt out, and you cannot delay payment. Once service is active, you are locked into buying power at whatever rate is set.
Over time, several factors have pushed rates higher:
- Growing demand on the grid, especially from data centers
- Extreme weather events stressing the grid
- Aging infrastructure requiring billions in upgrades
- Delays connecting new energy resources to the grid
For PECO customers, this means rates are extremely unlikely to decline in the future. Even when usage goes down, delivery charges and fixed fees remain.
That is why many are now looking for ways to protect themselves from future increases rather than hoping for relief.
How Solar Changes the Equation
When you install solar, you change how you buy electricity.
Going solar allows you to opt out of the endless cycle of rising energy bills. Instead of facing unpredictable rate hikes year after year, you can lock in long-term savings and stabilize your energy costs, putting that money toward something more meaningful than your electric bill.
Still, we recognize that the cost of solar remains a challenge for many families. Some homeowners are not in a position to take on ownership, even with financing. That’s why we set out to build something different, unlike anything else available in the market today.
What is a Solar Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a simple and affordable way to go solar with no upfront cost. Instead of buying or financing your system, you agree to purchase the electricity it produces at a set price per kilowatt-hour (kWh). The system is installed on your home, but you do not own it; the provider does. In return, you get predictable electricity at a rate that is lower than your utility’s, and the provider takes responsibility for installation, monitoring, and maintenance.
In other words, a PPA lets you lock in lower energy costs without the cost or responsibility of owning solar equipment.
If you don’t already have solar, you’re effectively in a PPA with your utility company. When you moved in and activated service, you agreed to buy power from them at rates they can raise whenever they want, with no end in sight. You’re paying for electricity generated by power plants miles away, often burning fossil fuels, and delivered to your home at an ever-increasing cost. A solar PPA changes that.
With Exact Solar’s PPA, you can lock in a stable, lower rate for clean energy produced right on your roof. Your solar rate will stay the same for 25 years, while utility rates continue to rise around you. There are no surprise fees, no annual increases, and no unexpected costs. You simply pay for the solar electricity your system produces at a predictable, affordable rate.
Unlike typical PPA options, Exact Solar’s PPA has no escalator. An escalator is a clause that increases your rate each year by a fixed percentage. Escalators are extremely common in the industry, and they often leave homeowners paying more than they expected, and in many cases, more than they would have paid the utility.
For many years, Exact Solar chose not to offer a PPA or lease option at all, because the available models didn’t meet our standards for transparency and fairness. That changed when we partnered with fellow Amicus members across the country to negotiate a better option, one that puts homeowners first.
With Exact Solar’s PPA:
- You pay nothing up front
- You get a locked-in rate that never increases
- You avoid the responsibility of ownership
- You gain the peace of mind that your electricity cost is stable for the next 25 years
Behind the scenes, the PPA provider, LightReach, owns and monitors your system to ensure it performs as promised. Exact Solar provides local service and support for the entire term, handling any maintenance or repairs as needed.
Why Exact Solar Created This PPA
Exact Solar is a locally owned solar installation company, serving Greater Philadelphia for over 20 years. Since day one, our mission has been to make solar affordable and accessible for our community. We have built a reputation on honesty, transparency, and always putting our customers first.
Exact Solar is part of a highly regarded national solar cooperative called Amicus, a national network of 90 mission-aligned, independent solar companies that work together to raise standards, share best practices, and advocate for renewable energy policy. Like Exact Solar, which has been in business locally for over 20 years, the average age of each member Amicus company is 20 years. We are the collective grass-roots installers all around the country trying to do solar the right way, with a high level of service and a strong customer focus. Amicus itself is a B Corp, and Exact Solar is proud to be a part of the Amicus network.
Exact Solar has traditionally helped homeowners go solar through two main options: paying in cash or financing the system. Those paths have worked well for many of our customers, and we’ve seen firsthand how much value solar can bring in terms of savings, stability, and long-term peace of mind.
With recent shifts in energy policy and the loss of the federal solar tax credit, it has become more important than ever to create a fair and affordable option for homeowners who still want the benefits of solar. At the same time, electricity rates across the country are rapidly increasing, making stable, predictable pricing more valuable than ever. Amicus members came together to negotiate a straightforward, ethical PPA option with LightReach.
Our goal was simple: put the homeowner first. That meant insisting on clear language, fair protections, and a truly low, fixed kWh rate with no escalator. We chose LightReach because they agreed to those strict terms and committed to operating with transparency, unlike most typical PPA options on the market that include hidden fees, escalating rates, or confusing fine print.
Find Out If a PPA Makes Sense for You
If you live in Pennsylvania and are exploring whether a solar PPA, or any payment option, is right for you, the best place to start is with a free solar estimate with Exact Solar.
Our team will review your electricity usage over the past 12 months and your current utility rates, then walk you through a side-by-side comparison of cash, financing, and PPA options. You’ll see exactly how each option works and what the savings will look like over time.
Even with recent policy changes and the phase-out of the residential tax credit, going solar is still one of the most effective ways to take control of rising energy costs and power your home with clean, reliable energy.
Schedule your free solar estimate today!
To learn more about Exact Solar’s solar PPA option, visit exactsolar.com/ppa.
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