Ohio businesses and homeowners are beginning to see electricity costs climb—and forecasts suggest these increases are not going away any time soon. This trend is tied to a series of changes happening across the electric grid that serves our region. The Mid-Atlantic and Midwest grid operator, PJM, recently reported record-high results in its capacity auction for the 2026/27 planning year, with prices rising over 20% compared to the previous year. 

While that technical language can feel far removed from your monthly bill, the reality is simple: the cost of keeping the lights on in Ohio is going up. Let’s break down why. 

What’s Driving Higher Energy Prices? 

Several factors are converging to create higher costs for electricity customers across Ohio: 

1. Changing Cost Management 

Grid operators have changed how they price electricity capacity—the reserve power needed to keep the grid stable during times of highest demand. These reforms were designed to ensure enough new resources are added to the grid, but they also pushed prices higher. 

2. Growing Demand for Power

Electricity demand is increasing again after years of flat growth. One major driver is the rapid expansion of large data centers, which use significant amounts of power. This new demand means the grid must secure more reliable supply, which comes at a higher cost. 

3. Shifts in Generation Resources

While demand is growing, the number of available power plants has stayed mostly flat. Older coal plants continue to retire, and although wind and solar projects are being added, these resources are considered “intermittent,” meaning they don’t provide around-the-clock power. This mismatch contributes to higher capacity prices. 

4. Bottlenecks in Bringing New Power Online

Thousands of renewable energy projects are waiting to connect to the grid, but the approval process has slowed progress. Until more of these projects can come online, supply constraints will continue to drive up costs. 

What This Means for Ohio Consumers 

Taken together, these conditions point to a future where electricity prices remain elevated for the near term—and potentially much longer.  

Large customers like data centers face new regulations requiring them to help manage demand. Meanwhile, supply chain challenges and the rising cost of building new power plants mean relief will not come quickly. 

For Ohio families and businesses, that translates into higher energy bills driven not just by the cost of electricity itself, but also by the rising fees tied to capacity and transmission. 

How to Manage Rising Energy Costs 

While the overall grid picture may feel outside of your control, there are steps you can take to protect yourself from rising prices: 

• Manage Peak Demand: Reducing electricity use during the grid’s highest-demand hours can lower the “tags” that determine a large portion of your bill. 

• Invest in Energy Efficiency: Improvements like upgraded lighting, HVAC, and insulation can cut your overall usage and improve payback in today’s higher-cost environment. 

• Consider Onsite Energy: Solar panels, battery storage, or combined systems like solar-plus-storage can help you generate your own electricity, reduce reliance on the grid, and build resilience. 

• Blend Energy Purchasing Strategies: For businesses, actively managing how and when you purchase energy can help balance costs. 

Why Solar is Part of the Solution 

The forces driving higher grid prices—growing demand, bottlenecks, and expensive new infrastructure—are largely outside of your control. But going solar gives you the ability to take back some of that control. 

By installing a solar energy system, you lock in a portion of your energy costs for decades, protecting your home or business from volatile energy prices. Pairing solar with storage can also help manage peak demand costs (if you’re on a time of use billing plan)  while adding resilience against outages. 

The Bottom Line 

Energy prices in Ohio are rising, and they’re expected to stay elevated for the foreseeable future.  

The combination of increased demand, flat generation resources, market reforms, and grid constraints means higher bills are here to stay. 

But there is good news: you don’t have to face these rising costs unprepared. Investing in energy efficiency and onsite solar generation can help you stabilize your energy expenses, reduce reliance on the grid, and gain more control over your bottom line. 

At Kokosing Solar, we’ve been helping Ohio businesses and homeowners take charge of their energy future for 25 years. If you’re concerned about rising electricity costs, now is the time to explore solar solutions that can protect you long into the future.