For many customers of BGE, Pepco, and other Maryland utility providers, multi-year energy rate increases have become an unfortunate trend. Many Maryland homeowners struggle to understand their monthly electricity bill price increases, which makes them challenging to mitigate.
Many Maryland residences can combat rising costs with cleaner, more cost-effective energy than conventional power grids by switching to solar. In this guide, we help Maryland homeowners understand their energy costs so they can find out how much they can save on electricity with a custom solar installation.

How Much is the Average Electricity Bill?
According to the Energy Information Administration’s usage data from December 2024, Maryland homeowners spent an average of 18.15 cents per kWh on electricity. On average, homeowners use around 899 kWh per month, which equates to about $163 per month, as a rough estimate based on the available data. This is an increase of around 3.8% from the previous year.
Depending on certain factors, individual energy usage can be much higher or lower than this. However, these trends mean that due to planned increases by primary energy providers such as Pepco and BGE and rising material costs, electricity bills in Maryland are increasing even faster than inflation. Without access to a more efficient alternative, these prices will continue to impact the finances of millions of homeowners.
The Benefits of a Solar Installation
Lowering the home’s energy usage by buying energy-efficient devices, turning off the lights at night, and investing in energy-saving light bulbs can help save on some electricity costs. However, these are not lasting solutions to combat rising bills. Homeowners turn to solar power arrays to future-proof their homes against inevitable energy hikes and other rising costs with these key benefits:
1. Lower Electricity Usage
Solar panels help homeowners save on electricity costs by lowering their energy usage. The sun is the richest power source available, yet it goes mostly unused. According to the Department of Energy, if fully harnessed, one hour of average noonday sun could power the entire country’s homes and businesses for a year.
Efficient solar arrays tap into this limitless source of clean energy to lower your home’s dependence on the grid. To maximize savings, professional solar panel installers will evaluate your house layout to determine the best setup for the installation, including the placement and angle needed to maximize its solar exposure.
Let’s put this in terms of concrete savings. According to 2024 data, most homes use 17-30 solar panels to produce 350-450 watts of power. On average, this leads Maryland homeowners to offset around 90% of their electricity costs to their solar arrays.
This means that minus the cost of the array, your home will only pay 10% of its original electricity bill. A 100% offset is desirable but not always achievable; this will differ between homes and situations.
2. Resistance to Power Outages
While not reflected on your monthly utility bill, damages caused by power outages are an indirect result of depending on conventional power grids. Food spoilage due to power outages impacts around 14% of homes yearly, with others reporting lost medication, wages, and electronic devices. Power outages become a significant yet unnecessary expense for many homeowners when factoring in emergency supply costs.
Solar installations give homeowners in Maryland the ability to resist power outages. Without drawing as much power from conventional grids, your home can still function normally off the battery reserves on the solar array. In areas prone to storms or other causes of outages, this can result in significant savings.
3. Tax Advantages
Another indirect source of savings is the tax advantages and state-sponsored credits that Maryland homeowners can receive by installing solar arrays. Solar installations are considered significant home improvements in the federal Investment Tax Credit (ITC), which applies to solar-compliant businesses.
Additionally, Maryland homeowners can apply for several state-funded clean energy programs to earn financial incentives for installing solar power. These include the FY25 Maryland Solar Access Program and the Maryland-Eligible Renewable Energy Credit (REC).
Visit the Maryland Energy Administration website to learn how to qualify for these incentives and where you can apply.

Contact Energy Select to Save on Your Monthly Electricity Bills
Solar installations allow Maryland homeowners to offset rising energy bills by switching to a cleaner and more renewable energy source. Solar panels help homeowners use less electricity, resist power outages, and qualify for federal and state-funded solar incentives.
Contact Energy Select today to learn how our experienced team can help you plan and install the right solar panel array for your situation. Our goal is to help make Maryland more energy-independent by giving its homeowners the tools to lower their electricity costs by getting off the grid for good.