As a Maryland resident, you have likely noticed increases in your power bill over the last year. Unfortunately, these increases will continue into 2025, with BGE rolling out a 12.4% average utility hike for Maryland residents by June. For Marylanders dealing with a tough economy, this news emphasizes the importance of reading your power bill and knowing how the costs are itemized.
This article breaks down how power bills are written to help you understand your monthly energy costs and how you can lower your bills with residential solar installations.
What’s Included in Your Power Bill?
The first step to accurately reading your power bill is knowing which bill you’re reviewing and what’s included. Your power bill is more than just an electric bill. For example, BGE bills include electric delivery, gas delivery, and a section for “other charges and credits.”
BGE and other providers include a breakdown of each utility to help you understand where unexpected upcharges come from. Under the bill summary, you can view your previous and outstanding balances.
Page Two of the bill details your home’s electric and gas usage over time, including annual usage tracking in a graph. This part of the bill is further itemized to help you understand exactly where charges are coming from, including charges for new clean energy initiatives, franchise taxes, and other state programs.
BGE’s 2025 price increases appear on this part of the bill. Your energy savings, smart energy rewards, and other bill credits will be on Page Three, under “Other charges and credits.”
What is a Bill Estimation?
Sometimes, homeowners receive a bill estimate instead of the usual breakdown of charges. This can happen when your utility provider is unable to read your meter. In Maryland, this can occur for several reasons, including:
- Inclement weather conditions
- Equipment malfunction
- Failed property access
This can result in charges being saved for a later month, especially in cases where your provider fails to access your meter for consecutive months. Once they get another accurate reading, you may receive a “true up” bill reconciling absent charges.
If you believe you were wrongfully overcharged for electricity, you should contact your service provider as soon as possible. If you notice multiple estimated bills, you should contact them and request more information in case the issue is within your control to resolve.
How Can I Reduce My Power Bill?
Many Marylanders will be asking this question in 2025. Stricter thermostat regulation can lead to short-term cost benefits. Still, with rising costs planned for the coming years, homeowners need a more lasting solution to rising energy bills.
Solar panel installations provide Marylanders with energy savings that can counteract BGE’s price increases. The benefits of solar power include:
- Cleaner Energy: Solar panel installations provide a cleaner source of energy that is friendlier to the local environment.
- Energy Savings: Solar can provide direct cost savings by powering homes more efficiently than traditional electrical grids.
- Energy Independence: When your home is off the grid, you may not have to worry about power outages or utility hikes from energy suppliers.
- Tax Incentives: The IRS offers incentives to homeowners to switch to solar, including the Investment Tax Credit (ITC).
- State Benefits: Maryland’s renewable energy programs, such as the FY25 Maryland Solar Access Program and Renewable Energy Credit, benefit homeowners who switch to solar.
- Higher Home Value: With traditional energy prices rising, new homeowners are looking for ways to save on their prospective energy bills, including prioritizing solar installations in their home search.
This is not an exhaustive list of benefits. If you’re curious how solar installations could help you lower or eliminate your conventional power bill, contact professional installers to learn more.
Contact Energy Select for Professional Residential Solar Installations
Comprehending your energy bills can be frustrating, especially if you see unexpected cost increases that warrant difficult customer service calls. As Marylanders endure BGE’s and other providers’ cost increases in 2025, they will seek residential energy plans that provide cleaner and more cost-efficient options.
Professional solar installations can help homeowners in Maryland reduce their energy bills while earning state-funded energy credits. Contact our experienced team at Energy Select to learn more about how to read your energy bills and how you can future-proof your home against current and future energy price increases.