⚡ Major Rate Hike Ahead? What El Paso Electric’s 2025 Plan Means for Your Energy Bill — and Your Solar Future
El Paso Electric (EPE) has filed a new rate case (Docket No. 57568) with the Texas Public Utility Commission, and changes could go into effect as early as July 1, 2025.
The filing includes bill increases for most residential customers and new restrictions for future solar customers, but if you already have solar, you're in a much better position.
Let’s explain what this means for homeowners and solar customers in the El Paso and Southern New Mexico region.
⚠️ Quick Summary
- Average bills may go up by $23/month.
- If you already have solar, your current rate plan is protected.
- New solar customers after July 1 will face limits on export credits and lower compensation.
- Act before July 1 to lock in more favorable solar terms.
Key Takeaways for All Residential Customers
- Monthly bills may increase: EPE estimates an average hike of $23/month, depending on your usage.
- No demand charges (yet): Standard residential rate (Rate 01) will still be based on how much energy you use — not when you use it.
☀️ Already Have Solar? You’re Protected.
If you already have solar and an approved interconnection agreement:
- ✅ You’re grandfathered in under your existing rate plan.
- ✅ You can upgrade your system (e.g., add battery storage or expand your array) without losing this protection — just be sure to submit the correct paperwork.
- ✅ You won’t be moved to a plan with demand charges or restricted export credits.
⚠️ Planning to Go Solar? Do It Before July 1, 2025.
If you install solar after July 1, here’s what changes:
- Application fees apply:
• $85 for systems ≤100 kW
• $230 for systems over 100 kW
(These are usually covered by your installer.)
- ⚡ Limited net metering:
• Only available for systems under 50 kW
• System must be sized to match your home’s annual use
- Export caps and lower credits:
• Only up to 10% of last year’s usage can be exported
• Excess energy is credited at EPE’s avoided cost rate — just a few cents per kWh (vs. full retail value)
- ✍️ Disclosure required:
• You must sign a form acknowledging that future rate changes could impact your solar savings
Why Is This Happening?
EPE's testimony claims that solar customers:
- Use less total electricity, but…
- Still draw significant power during peak hours (like evenings)
- Have lower load factors, meaning their usage is “peaky” and more expensive to serve
While demand charges aren't proposed yet for solar customers, this data lays the groundwork for such changes in the future.
✅ What You Can Do Right Now
If you're considering solar, this is your window of opportunity:
- Get started before July 1 to secure current solar benefits
- Ensure your installer helps you file all necessary paperwork
- Ask about battery storage to increase energy independence and reduce peak demand concerns
- Work with a trusted local provider who understands the rate case and how to navigate it
The Bottom Line
- If you already have solar: ✅ You're safe — for now.
- If you’re thinking about it: Act before July 1 to lock in better terms.
- Expect continued changes in solar policy and rates in the coming years — staying informed is key.
About Us
Solar Smart Living has been helping homeowners and businesses across Southern New Mexico and El Paso go solar since 2007. We’re committed to providing transparent, informed guidance — especially during times of change like this.
Thinking of going solar? Make sure you do your research, check reviews, and include us in your list.
Get a free, no-obligation quote today and let’s explore your options before the July 1 deadline.
