Has your electric bill gone through the roof? You’re certainly not alone. Since 2021, Portland General Electric and Pacific Power have raised their rates by 40% and 50% respectively.
This year, to be more precise, PGE has received approval from the Oregon Public Utility Commission for a 5.5% increase, which comes on the heels of an 18% increase in 2024, 7% in 2023, and 11% in 2022.
Likewise, Pacific Power’s customers have seen rates increase by 15%, then 21%, 11%, and now 9.8% in 2025.
Why are utility companies raising their rates so much?
Both companies are facing increasing costs and passing those expenses on to their customers. Each utility is said to be investing in transmission and infrastructure improvements, renewable energy integration, wildfire mitigation and restoration projects, and increasing wildfire insurance premiums.
Additionally, in Pacific Power’s case, lawsuits associated with the utility’s role in 2020 wildfires has added more than $1 billion to its financial obligations. More lawsuits stemming from wildfires in 2024 are in appeal, and in total, PacifiCorp (Pacific Power’s parent company) says it faces legal claims in excess of $45 billion.
PGE and PacifiCorp may soon be shielded from wildfire lawsuits if Oregon House Bill 3666 is passed. More on that here.
Still, PacifiCorp’s reported net income for 2024 was $4.3 billion while PGE raked in $327 million.
When it all boils down, Oregonians are footing the bill for their utility company’s increased operating costs and paying thousands more on their electric bills every year.
What’s the alternative?
If all this makes you want to reduce your dependence on these investor owned utility companies, you’re in the right place.
Now’s the time to tap into the power of the sun and forget about your horrifying electric bills. While utility rates are going up, the cost of switching to solar energy is going down.
The average cost of residential solar panels has decreased by 40% in the past ten years, mostly due to increased demand, manufacturing becoming more efficient, and the industry becoming more mature. This means the total cost to make the switch to solar power is probably a lot less than you think.
How much does it cost to switch to solar power in Portland, OR?
As of April 2025, in Portland specifically, the average cost of a solar panel system is $2.60/Watt including installation. That means 5 kilowatt system will cost roughly $13,000. However, after state and federal incentives, you’ll pay less than that.
So, how quickly will you break even? Numerous factors would be at play including the cost of electricity, the incentives your receive, our local climate, and the angle at which the sun hits your roof. But, most homeowners will save around $1,500 a year, making the payback period about 8.6 years.
Get help from local experts
To find out exactly what solar energy system is right for your home and family, talk to the seasoned pros at Neil Kelly. We have the resources and expertise to tailor a system to your unique requirements. Plus, we can help you access tax credits and incentives that can offset the cost of installing your system.
Schedule your complimentary 30-minute assessment via phone or video with a Neil Kelly Solar Consultant today.
