If you’re a PECO customer in Pennsylvania, brace yourself: your electricity bill is about to rise — again. Starting in June 2025, supply prices for electricity are expected to jump significantly, and the long-term forecast doesn’t look any better. This change could cost the average homeowner $200 or more each year, even if you don’t use any more electricity than usual.
In this article, we’ll break down what’s happening with PECO’s pricing, explain why bills are going up, and show you how solar energy is one of the only ways to fight back.
What’s in Your PECO Bill, Anyway?
To understand why your bill is increasing, it helps to know what you’re actually paying for each month.
Your PECO bill is divided into two main charges:
- Delivery Charges: This covers the cost of maintaining poles, wires, and other grid infrastructure. It’s regulated and usually stays steady.
- Supply Charges: This is the cost of the actual electricity you use. PECO doesn’t generate power, they buy it on the open market and pass the price directly to you. This is where the increases are happening.
When wholesale energy prices go up, or when the cost of backup energy increases (more on that below), your supply rate rises, and so does your bill.
What’s Going On With the Capacity Market? (Explained Like You’re 8)
Think of the power grid like a big pizza party.
PECO needs to make sure there’s enough pizza for everyone, even if a few extra people show up last minute. So they pay to have extra pizzas on standby… just in case. That “standby pizza” is the capacity market, energy reserved for emergency or peak usage times, like during a summer heat wave.
Each year, PECO participates in what’s called the PJM capacity auction, where they pay power plants to be on call. This is like putting in a big order to make sure there’s always power when people need it most.
The problem? This year, the price of that backup power skyrocketed — by over 500%.
And yes, they’re passing that cost straight to you.
How the Capacity Spike Increases Your PECO Bill
The capacity costs are folded into your supply rate, the part of your bill that’s about to spike. Here’s a simplified look at what’s changing:
| Load Factor | Old Capacity Cost | New Capacity Cost |
|---|---|---|
| 30% (avg. home) | 0.3¢ per kWh | 2.0¢ per kWh |
What does this mean?
If your home uses around 1,000 kWh per month, this single change could add $20–30/month to your summer bill — and you won’t even notice it until it hits.
That’s just one line item. If other energy market prices go up (which they likely will), your bill could climb even higher.
How Solar Can Protect You From Price Hikes
PECO’s rates go up. The sun stays free.
With solar, you don’t have to rely on market prices or capacity auctions. Instead, you generate your own power, right on your roof, and lock in a much lower, predictable rate for decades.
Here’s why more and more homeowners in Pennsylvania are choosing solar:
- Lower Monthly Bills: Many save hundreds per year, sometimes more.
- Protection From Rising Rates: Once you go solar, your rate doesn’t spike when PECO’s does.
- No Upfront Cost: With Butterfly, qualified homeowners can get started with $0 down.
- Local Support: You’re working with a trusted team based right here in Eastern Pennsylvania.
Here’s a sample PECO bill with solar:
Meet Some of Your Neighbors Who’ve Already Gone Solar
The Jones Family in Fort Washington: Switched to solar with Butterfly in 2024. Their average monthly electric bill dropped by 62%. They financed the system with $0 down.
A homeowner in Hatboro: Installed a rooftop system and battery backup with Butterfly. Now saving over $180/month and has backup power during outages.
These are just a few of the families we’ve helped go solar across Montgomery County and the surrounding region. Want to see what solar could do for your home?
Don’t Wait for the June Surprise — Get a Free Solar Quote Today
June is here, and so is PECO’s new rate increase. But there’s still time to take control of your electricity costs before the higher bills hit.
At Butterfly, we make it easy to find out if solar makes sense for your home. There’s no pressure, no cost, and no commitment, just a free custom solar quote based on your roof, usage, and budget.
See how much you could save.
