Ohio Electricity Rates Are Rising in June — Here’s How Solar Can Help You Save

Why Are Ohio Electricity Bills Increasing in 2025?

Ohio residents are facing a significant increase in their electricity bills. 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. 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.

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

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

Connect with a solar.com Energy Advisor to compare proposals from vetted solar installers and see your savings potential.

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Compare Electric Rates in Ohio: Utility vs. Rooftop Solar

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.​

In contrast, the cost per kWh of electricity generated by rooftop solar panels in Ohio is typically around 6 to 8 cents.​

By installing solar panels, Ohio homeowners can effectively cut their electricity rate in half. Over time, these savings can add up significantly, especially as utility rates continue to rise. 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.

*Total based on utility rates rising 3.5% per year on average. **Based on 20-year loan with 6.5% interest rate.

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How Solar Panels Can Reduce Your Electricity Costs in Ohio

Installing solar panels on your home can be an effective way to mitigate rising electricity costs. Here’s how:​

1. Lower Monthly Bills

Solar panels generate electricity from sunlight, reducing the amount of power you need to purchase from the grid. This can lead to significant savings on your monthly electricity bills.​

2. Protection Against Rate Increases

By generating your own electricity, you’re less affected by utility rate hikes. This provides a level of financial stability and predictability in your energy costs.​

3. Net Metering Benefits

Ohio offers net metering, allowing you to receive credit for the excess electricity your solar system produces and feeds back into the grid. These credits can offset future electricity usage, further reducing your bills.​

4. Increase Home Value

Homes equipped with solar energy systems often have higher property values and are more attractive to buyers.

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Understanding Solar Incentives in Ohio

Ohio residents can take advantage of several incentives to make solar installation more affordable:​

• Federal Solar Tax Credit: Homeowners can claim a federal tax credit for 30% of the cost of installing a solar energy system.​

• State and Local Programs: Various programs may offer rebates or other financial incentives for solar installation.​

• Net Metering: As mentioned, net metering allows you to earn credits for excess energy produced.

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Taking the Next Step Toward Energy Independence

With Ohio electricity rates on the rise, now is the best time to consider solar energy for your home. Investing in solar puts you in control of your electricity costs and shields you from rising energy costs.​

Connect with an Energy Advisor to explore your options and savings potential. Our team is here to guide you through the process and help you make an informed decision about going solar in Ohio.