Electricity costs in Maine are expected to reach record levels because of elevated natural gas prices, placing a strain on household budgets and the grid.

What's causing rising electric costs?

As Maine Public reported, power bills are projected to reach a three-year high because natural gas prices for electricity generation have increased by roughly 40%, according to the U.S. Energy Information Administration. In New England, around 50% of the power consumed is generated by natural gas plants, making rising energy costs especially notable. 

The Maine Public Utilities Commission approved new contracts to expand electricity generation and transmission to support the state's renewable energy transition, but many of these costs are being passed on to consumers.

The rates are expected to increase by $130 to $200 per year, depending on customers' utility providers. However, the actual cost of electricity only makes up a portion of the bills, with the rest dedicated to "transmission and distribution fees and 'public policy' charges that cover some of Maine's renewable energy initiatives, according to the commission."

"We recognize that rising energy costs create real challenges for Maine households and businesses," PUC chair Philip Bartlett said in a press release, per Maine Public.

However, going solar is easily one of the best ways to hedge against rising electricity costs, become energy independent, and drastically lower your monthly bills. TCD's Solar Explorer provides plenty of resources to help homeowners understand their options and find the best deal for their needs and budget.

Why are higher electricity bills concerning?

Electricity costs are rising throughout the U.S., putting some households at risk of having their power shut off or forcing them to incur debt to pay their bills. 

According to a LendingTree report, more than 34% of Americans have reduced or skipped necessary expenses at least once in the last year to pay for electricity. 

As the Century Foundation noted, households in the Northeast face the highest average electric bills of $300 or more. 

There's little families can do to control the market, however, as gas demand is skyrocketing to power data centers and fuel the electrification of appliances and vehicles. 

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Andrew Price, president and CEO of the consulting group Competitive Energy Services, explained that, because pipeline supply to New England is limited and many households still rely on generators, gas supplies are constrained, thereby driving up prices. 

"The system has to fall back on liquefied natural gas that's imported, or oil, and so we do see higher prices here in New England than other places in the U.S. because of that pipeline constraint that really hits in those peak months," Price said.

How solar panels make energy affordable

If you're already dreading the electric bills this winter, it might be time to invest in a home solar system. 

Leasing can be a viable option if you don't want to buy, and Palmetto's LightReach program is one of the most popular on the market, offering competitive features such as $0-down subscription plans and predictable payments. TCD's Solar Explorer makes it easy to connect with vetted contractors like Palmetto and, if you want your own system, EnergySage. 

Through this service, you'll find a one-stop shop to answer all your questions about solar and find a system that works for your home. 

If you decide to go with EnergySage, you can save up to $10,000 on purchases and installations, and leasing with Palmetto will help you achieve an up to 20% reduction in utility rates, along with indirect benefits from federal tax credits. 

You can also pair solar panels with energy-efficient appliances such as heat pumps for maximum savings, and TCD's HVAC Explorer can help set you up with a reliable, cost-saving system. If you're really ambitious about saving money on energy bills, try downloading the Palmetto Home app and unlock rewards worth $5,000 to spend on home electrification by completing challenges such as cutting down on energy use.

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