Many Maryland residents have noticed energy bill increases in recent months. Major providers, such as BGE (Baltimore Gas and Electric), have rolled out planned electricity price increases. When combined with economic changes, many homeowners are left wondering how much their monthly utility costs will be. Budgeting effectively for a BGE electric bill can be challenging, but recognizing the causes of these changes can help homeowners budget for them.
This article aims to help homeowners with BGE electric bills uncover the causes of their increasing monthly bills and the steps they can take to mitigate the concern, including investing in sustainable solar energy.
Why are BGE Electric Bills Increasing?
One of the most noticeable planned price increases was on January 1, 2025, when BGE increased its average residential electricity bills by 7%. For some homeowners, this meant a jump in the peak winter season by $200 or more.
Why were these increases implemented? BGE cited several reasons, including:
- Higher average energy usage
- Higher distribution costs
- Inflation rates
- Infrastructure expansion costs
- Regulatory efficiency standards
This last reason refers to EmPOWER Maryland, a legal incentive that helps Maryland’s households access sustainable energy through free or discounted services, including energy-efficient appliances and energy audits. BGE is one of six major utility providers that pay into EmPOWER, which was updated in 2024 with House Bill 864.
This bill added new incentives to increase Maryland’s transition away from fossil fuels toward more sustainable electric alternatives, such as solar installations. Pressure from EmPOWER Maryland is one of the driving forces behind BGE’s trickle-down price increases in 2025.
In summary, BGE energy bills are increasing because the cost of delivering the electricity to homes has steadily risen over the last five years. To put it in perspective, their “distribution costs” for electricity have increased by about 30% since 2020, excluding any rises in the costs of the electricity itself (“supply costs”). They pass many of these costs on to their consumers in the form of extra charges. They don’t always clarify the exact cause of the rate increase, which can make budgeting challenging.
What Other Factors Lead to Monthly Utility Increases?
These factors from BGE’s end are not the only reasons that BGE’s electric bills have gone up. On the homeowner’s end, a mix of behavioral, seasonal, and market variables impact their bills. These include seasonal power usage habits, which can change utility rate calculations. During the summer, homeowners run their HVAC systems more frequently, placing a strain on the grid.
Major providers, such as BGE, often charge more for peak-time energy usage due to the additional infrastructure costs. Other factors that can affect electricity bills include household occupancy and the energy efficiency of the home, both of which can lead to higher energy consumption.
For example, if the roof becomes damaged, internal temperature regulation may require more power. Since many of the causes of electricity price fluctuations are outside of the homeowner’s control, recognizing the behaviors that can be changed is an essential part of budgeting for inevitable price hikes.
How to Lower Monthly Electric Bills
Homeowners in Maryland can follow these steps to lower monthly electric bills. Though not all of the factors influencing energy increases are within homeowners’ control, these strategies can help mitigate monthly costs for the following factors:
1. Track Energy Usage
BGE energy bills contain information that helps homeowners track and categorize their energy usage. This can help homeowners maintain visibility over both energy spikes and savings, allowing them to adjust their habits and address the problem at its source.
2. Adopt Energy-Efficient Practices
Many devices can be incorporated into modern homes to enhance energy efficiency. These include LED light bulbs, energy-saving appliances, and serviced HVAC systems. Other energy efficiency upgrades can be implemented, such as energy-efficient windows, roofing material upgrades, and smart thermostats with programmable timers.
3. Install Solar Arrays
Modern solar arrays can help homeowners lower their BGE electric bills in several ways. Solar installations enable homeowners to rely less on the power grid, not only reducing overall energy usage but also shielding them from peak-time usage overages and other fees related to infrastructure strain. Additionally, solar installations open doors for homeowners to save even more money through state-funded grants and SECs (Solar Energy Credits), which can be sold on dedicated markets.
Experienced solar energy providers can help homeowners explore options for lowering their BGE electric bills. Customizing the energy solution to each homeowner’s situation is essential for creating long-term savings that can help mitigate current and future utility price increases in Maryland.
Partner With an Experienced Solar Energy Provider to Lower BGE Electric Bills
At Energy Select, our experienced team helps homeowners in Maryland lower their electricity bills with energy-saving strategies and modern solar arrays. With BGE’s planned energy price increases showing no signs of slowing, professional energy guidance is more essential than ever for homeowners to budget with transparency in the future.
Contact our team today to learn how to use energy-saving strategies and sustainable solar installations to lower BGE electric bills in 2025 and beyond.