Most homeowners on the Kitsap Peninsula rely on Puget Sound Energy (PSE) for their electricity. In the past two years, there has been a significant increase in utility rates, and a recent 3-year proposal will make them even more expensive. If approved by the Washington Utilities and Transportation Commission (UTC), homeowners in 2029 will pay 53% more for electricity than they did just five years prior.
To combat this, many people have turned to solar as a solution. Solar panels and solar battery systems can increase your energy independence, insulate you against rising electricity costs, and provide better financial stability and predictability.
PSE Rate Changes Over Time
PSE customers saw dramatic increases in residential electricity and natural gas rates in 2025 and 2026:
Electricity
- In January of 2025, the UTC approved a 12% rate increase.
- In January 2026, PSE rates increased by 12% again. The average residential customer using 800 kWh of power per month spends $17 more every bill.
Natural Gas
- In January of 2025, the UTC approved a 9.4% rate increase.
- In January of 2026, the UTC approved a 7% increase. The average residential customer using 64 therms per month will spend $6.50 more every bill.
Over the next three years, electricity and natural gas rates will increase just as substantially. PSE has filed a 3-year rate plan request with the UTC. Their proposed rates are as follows:
Year | Electric Rate Increase (%) | Gas Rate Increase (%) |
2027 | 16.75% | 13.32% |
2028 | 3.76% | 3.04% |
2029 | 8.81% | 3.47% |
Other Utility District Changes
Customers outside of PSE’s service area are not immune to rate changes either. In 2025, Jefferson County PUD’s 4-year rate schedule was approved. This authorized a 9% rate increase in 2025, followed by a ~7.25% increase each year for 2026, 2027, and 2028. By the end of 2028, residential customers will pay at least 30% more for electricity than they did just a few years prior.
Furthermore, rates are expected to climb an additional 6% soon due to recent litigation concerning hydroelectric dams’ effects on salmon populations. Dams are being instructed to increase their amount of spillover, or the amount of water that doesn’t go through electricity-generating turbines. As a result, less electricity is available, so local PUDs are forced to purchase electricity elsewhere, often at a premium.
Clallam PUD has had significant rate hikes as well, including a 3.75% increase on April 1, 2026, and a planned 3.75% increase on April 1, 2027.
How Solar Protects You Against Electric Rate Increases
Over the next three years, your electricity rates could increase nearly 30%. A residential solar installation is a way to hedge against these rate changes. It provides multiple benefits:
Energy Independence
Rather than relying exclusively on your utility company, you can gain independence from them and produce your own electricity. This level of self-reliance provides more financial control, and for many people, it’s a matter of personal values.
Less Affected by Rate Changes
Solar panels let you insulate yourself against rising utility costs. If you design a system that’s large enough to exceed all of your power demands, electric rate increases are of zero concern to you.
Any excess power that you produce is sent back to the utility and credited to you at a 1:1 net metering rate. When you receive your electricity bill, these credits will apply to any grid-provided electricity that you used during low solar production times. Many households that install grid-tied solar do not have any net consumption, so they only pay a base meter charge.
Backup Power
If you choose to install a solar battery system, you’ll have access to power even when the grid goes down. During a power outage, your solar system will automatically disconnect from the grid, and your home will begin utilizing stored power. This is a major advantage, especially for those who rely on medical devices. Many battery storage systems are eligible for local incentives.
Additionally, blackouts are becoming an increasing concern for many Washington residents. The availability of power is diminishing, which some studies have attributed to the growth of data centers in the state. In the future, public utilities may need to begin curtailing energy use during peak events, potentially resulting in power outages for those living in Jefferson County. Solar batteries and backup generators are an effective solution for these situations.
Protection Against Gas Rate Changes
Many people install solar panels as a part of whole-home electrification. Replacing your fossil-fuel appliances with an all-electric heat pump, water heater, and stove can eliminate your reliance on natural gas.
By powering your home with a large solar array, you can generate enough power to cover this equipment’s energy consumption. This allows you to avoid the 20% increase in gas rates that are expected over the next three years.
Cascadia Solar Can Help You Prepare
Western Washington homeowners need to start protecting themselves against significant electricity and gas rate hikes. By installing solar panels this year, you can avoid the financial burden and annoyance that will come from paying 30% more for electricity.
Cascadia Solar is the solar branch of Frederickson Electric, a 50+ year-old company situated in Port Townsend. Combined, you can rely on us for an all-in-one solution that reduces your reliance on utility companies and helps you save money long-term. From solar panels and batteries to EV chargers and heat pumps, our licensed experts are here to help.
