Electricity Bills Jumping 15% in January 2026: 7 Mistakes You're Making with Your Southern Maine Electric Setup (And How to Fix Them)

If you're a homeowner in Biddeford, Saco, Old Orchard Beach, or anywhere in Southern Maine, you've probably noticed your electricity bill took a serious jump this January. You're not imagining things – residential supply rates increased from 10.61 to 12.72 cents per kilowatt-hour, which translates to about 20% more on your monthly bill.

For the average household using 550 kilowatt-hours monthly, that's roughly $11 more each month, or $132 extra annually. Ouch! But here's the thing – while we can't control Maine's electricity rates, there are definitely mistakes many Southern Maine homeowners are making that are costing them even more money.

Let's dive into the seven biggest mistakes we see at Downeast Electrical Services and, more importantly, how to fix them.

Mistake #1: Not Understanding Your Bill Structure

The Problem: Most homeowners in Biddeford and surrounding areas don't realize their electricity bill has two main components – supply and delivery. The January 2026 rate increase only affects the supply portion (about 40% of your bill), not the delivery charges from Central Maine Power.

The Fix: Take a close look at your bill breakdown. Understanding what you're paying for helps you make smarter decisions about energy usage and alternatives. The supply portion is where you have options – you can stick with the standard offer rate or explore competitive energy providers.

Mistake #2: Ignoring Electrical Panel Upgrades

The Problem: Many homes in Southern Maine still have outdated electrical panels from the 1980s and 1990s. These older systems aren't just safety hazards – they're also energy wasters that can't efficiently handle modern electrical demands.

The Fix: Consider upgrading to a modern electrical panel. Not only will this improve safety and efficiency, but it's also essential if you're planning to add energy-saving devices like heat pumps or EV chargers. Our service upgrade and panel services can help you determine if an upgrade makes financial sense.

Mistake #3: Overlooking Heat Pump Installation

The Problem: With natural gas prices driving up electricity costs, many Scarborough and Kennebunk homeowners are still relying on expensive resistance heating or oil systems. They're missing out on heat pumps, which can be 2-3 times more efficient than traditional heating methods.

The Fix:Ductless mini-split systems can dramatically reduce your heating and cooling costs. Plus, there are still federal tax credits available that can save you up to $7,500. Even with the January rate increase, heat pumps often pay for themselves within 3-5 years.

Mistake #4: Not Exploring Alternative Energy Suppliers

The Problem: Most homeowners automatically accept the standard offer rate without realizing they have options. As of January 2026, competitive suppliers in Maine are offering rates ranging from 12.50 to 17.50 cents per kilowatt-hour.

The Fix: Research competitive energy providers carefully. While some offer lower rates than the new standard offer, others are higher. Read the fine print, understand contract terms, and calculate the actual savings over the contract period. Remember, Central Maine Power doesn't profit from supply charges – they just collect payments for generators.

Mistake #5: Living with Energy-Wasting Appliances and Lighting

The Problem: Old appliances, incandescent bulbs, and inefficient electric water heaters are electricity hogs. With rates now at 12.72 cents per kWh, every wasted kilowatt-hour hurts your wallet more than before.

The Fix: Start with the low-hanging fruit – switch to LED bulbs throughout your home. Then consider upgrading major appliances to Energy Star models when they need replacing. For electric water heaters, heat pump water heaters use 60-70% less electricity than conventional units.

Mistake #6: Poor Home Insulation and Air Sealing

The Problem: Many homes in Wells, York, and other coastal Southern Maine towns have inadequate insulation and air leaks. Your electrical systems have to work overtime to maintain comfortable temperatures, especially during Maine's harsh winters.

The Fix: While we're electrical contractors, not insulation experts, we often work hand-in-hand with energy efficiency improvements. Proper insulation and air sealing can reduce your heating and cooling loads by 20-40%, which means your heat pumps and electrical systems run more efficiently.

Mistake #7: Missing Out on Available Rebates and Incentives

The Problem: There are still significant rebates and tax credits available for energy-efficient electrical upgrades, but many homeowners don't know about them or think they've missed the deadlines.

The Fix: Federal tax credits for heat pumps and EV chargers are still available, though some are scheduled to phase down. Maine also offers various efficiency programs. Before making any major electrical upgrades, research available incentives. We can help you understand which upgrades qualify and ensure installations meet all requirements for rebates.

What You Can Do Right Now

Don't let rising electricity rates catch you off guard. Here are immediate steps you can take:

This week: Review your electricity bill to understand the supply vs. delivery breakdown. Check if you're currently on the standard offer rate or with a competitive supplier.

This month: Schedule an electrical consultation to assess your home's electrical efficiency. We can identify opportunities for upgrades that will save money long-term.

This year: Consider major efficiency upgrades like heat pumps, panel upgrades, or EV charger installation if you're planning to go electric with your vehicle.

The Bottom Line for Southern Maine Homeowners

Yes, electricity rates went up in January 2026, and there's not much we can do about that. But there's plenty we can control. The key is making smart electrical upgrades that reduce your overall energy consumption and take advantage of available incentives.

At Downeast Electrical Services, we've helped hundreds of homeowners throughout Southern Maine reduce their electricity bills through strategic electrical improvements. From Biddeford to Kennebunkport, we understand the unique challenges of coastal Maine homes and the opportunities for energy savings.

The January rate increase might sting now, but it's also a wake-up call. By addressing these seven common mistakes, many of our customers actually end up with lower electricity bills than before the rate increase, plus they have more comfortable, safer, and more valuable homes.

Ready to take control of your electricity costs? Contact us for a consultation. We'll help you prioritize the most cost-effective electrical upgrades for your specific situation and budget.

Remember, every kilowatt-hour you save is now worth more than ever. Let's make sure your Southern Maine home is as efficient as possible.