As a Maryland resident, you may have noticed that your BGE bill keep increasing. Rising energy production costs and rising state fees drive many Maryland residents to seek more cost-effective alternatives for their residential energy needs.
Unfortunately, this problem will only worsen, with Maryland state fees for residential energy increasing by 12.4% by June 2025. This equals $24.80 more per month on a $200 energy bill. Particularly in the winter, these bills are too high for many homeowners, who are now seeking ways to lower their energy costs and save money.
In this guide, we discuss your rising BGE bill, including strategies for what you can do to cut your monthly energy expenses in Maryland.
Why Is Your BGE Bill Going Up?
In January 2025 alone, BGE bills increased an average of $26 per homeowner, but this is only the start. According to WBAL News, in the first six months of 2025, there will be five individual increases in monthly energy bills.
The price of each increase will vary, but many Maryland homeowners who are already stretched on their monthly budgets will receive even more bad news over the next six months. This unparalleled increase in BGE bills may seem sudden, but it is not random.
According to BGE, which is directly responsible for at least 36% of the increase, the rising energy bills result from a need to recoup spending from their multiyear rate plan. This plan was rolled out to improve the safety of gas and electric power distribution systems, lower greenhouse gasses, and enhance the grid’s resistance to power outages.
They claim that the other 64% of the increase is due to market changes and rising electricity costs. The Office of People’s Counsel (OPC) in Maryland studied this issue and concluded that BGE’s price hikes are rising faster than inflation. In other words, prices are not rising as steeply in places where utility systems are not subject to multiyear investment plans.
According to their findings, BGE promises its investors increased capital infrastructure funding and certain annual growth rates, resulting in these rate increases for residents. Though this information helps clarify the causeof your rising BGE bills, as with most Maryland homeowners, you’re likely more invested in finding a solution.
How to Save Money on Energy Bills
Since BGE’s price hikes can’t be changed at the consumer level, Maryland homeowners are turning to renewable energy solutions to reduce their monthly bills. Alternative energy solutions such as solar panel installations can supplement or even replace residential energy needs in 2025 and beyond, helping homeowners reduce their rates in four important ways:
1. Lower Long-Term Energy Costs
According to the Department of Energy, properly installed solar panels will pay for themselves in as little as 10 years. Solar panels allow residences to tap into a clean, renewable energy source entirely off the grid and outside BGE’s influence.
As on-grid energy prices continue to increase in 2025 and beyond, homes with solar panels will be future-proofed against increased economic and regulatory pressures.
2. Access to Government Aid Programs
Two government programs, the Maryland Solar Access Program and Maryland-Eligible Renewable Energy Credit, give homeowners an incentive to switch to solar energy and supplement their energy bills.
These programs provide channels for homeowners to receive clean energy and payment credits for contributing to renewable energy production. As Maryland continues to prioritize CARES (Clean and Renewable Energy Standard), these incentives will allow residents to lighten their financial burdens while helping to fulfill state energy regulations.
3. Tax Benefits
In addition to state-level incentives, solar installations can also provide tax benefits. The Investment Tax Credit (ITC) benefits solar-compliant homeowners, provided they apply within the window. Visit Energy.gov to learn more about the ITC and how to apply for tax benefits on your new solar installation.
4. Increased Home Value
Finally, solar panel installations can increase the value of your home. As BGE bills continue to rise, homebuyers will prioritize clean energy installations when looking for a new home. When refinancing, negotiating home insurance rates, or selling your home, solar panel installations can recoup some of the money you lost on rising BGE’s bills.
Lower Your Monthly Energy Bills With a Professional Solar Panel Installation
Properly installed solar panels help homeowners offset their rising BGE bills with renewable, cost-effective energy. While solar panels are a large initial investment, the promise of continuing BGE price hikes in 2025 should prompt Maryland’s homeowners to consider their eligibility for solar panels.
By going off the grid, residents can save on electricity costs in the long term while reaping numerous state and federal-level benefits for clean energy production. At Energy Select, our professional team can consult with you on your home’s energy needs, including your eligibility for high-quality solar panel installations. Contact us today to learn how you can offset your rising BGE bills with renewable energy alternatives.