PSE electricity rates keep climbing in 2026, with more increases in sight.
In 2025, Puget Sound Energy (PSE) customers experienced their largest annual rate surge in a decade, totaling 21.3%. Then, in January 2026, customers dealt with more price hikes, with a 13.1% increase applied to the initial 600 kilowatt hours (kWh) of consumption, and the cost of usage over this threshold jumping 11.9%. Source: PSE.com
That brings the 10 year average annual increase to a record high of 6%!
PSE Rate History Data Updated January 2026
Industry experts predict this upward trajectory will not only persist but accelerate over the next 20 years as PSE works to meet CETA compliance requirements and address growing consumer demand. Evidence that PSE plans additional rate increases came in January 2026, when they filed a “Notice of Intent to File a General Rate Case” with the Utility and Trade Commission.
READ: As building new power gets harder, US utilities seek record rate increases
You Have a Choice – Your Power, Your Way
But there’s a silver lining! You can take control of your energy expenses by going solar, which delivers a guaranteed return on your initial investment. Most homeowners recoup their investment within 12-14 years based on historical rate increases. But with bigger than ever increases in rates happening recently, your return on investment could likely be shorter.
The key components of solar systems come with 25-30 year manufacturer warranties and are designed to function well beyond the payback period, allowing you to lower your living expenses for decades after breaking even. Because reducing living expenses becomes crucial during retirement when income is typically fixed, installing solar panels now provides substantial financial advantages for the future.
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But Wait, There’s More!
Don’t plan on staying in your house forever? Savings on energy bills aren’t the only benefit of going solar.
Studies consistently show increased sale prices and fewer days on market for homes with solar. One, by the National Renewable Energy Laboratory, under the U.S. Department of Energy, shows homes with solar panels can see up to a $4 increase in value for every watt installed. A 2025 report from SolarReviews.com based on Zillow data, found that homes with solar panels sold for about 6.9% more than those without between 2022 and 2025. Even taking a more conservative estimate of a $2 per watt increase in property value, solar still stands out as a good financial choice. The implications are clear: installing solar panels offers many homeowners solid returns even if they sell their homes before recouping the upfront costs through energy savings.
The Best Time to Go Solar is Always Now!
In today’s changing economy, you might question whether it’s the right moment to invest. But Washington State homeowners can still count on solar panels as a smart and reliable choice.
So, what are you waiting for? Stop buying your electricity from your utility company, and start putting that savings back into your own pocket.
Need Another Reason to Go Solar Now?
Changes to Net Metering on the way in Washington
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