If you own a home in Pennsylvania, your energy bills in 2026 are higher than they were in 2024. That is not speculation. It is already showing up on monthly statements across every utility territory in the state.
Pennsylvania utility rates have climbed 19 to 27 percent over the past year, and the pressure is not easing. PJM Interconnection, the grid operator that coordinates electricity across Pennsylvania and 12 other states, is projecting an additional 5 percent electricity price increase starting June 1, 2026. That follows a year in which PJM’s capacity auction results surged 833 percent compared to the prior year, a cost that lands directly on every residential customer in the state.
The average residential electricity rate in Pennsylvania now sits at roughly 20 cents per kilowatt-hour as of April 2026. That represents an increase of approximately 40 percent since 2020. And PECO, which serves the Philadelphia region, filed a request in late March 2026 to raise electricity rates another 12.5 percent starting in 2027, adding about $20 per month to a typical residential bill.
These are not isolated adjustments. They are compounding increases driven by structural forces that show no sign of reversing.
What Is Driving the Increases
Several forces are converging at once, and most of them are outside of any homeowner’s control.
In late February 2026, the US and Israel launched strikes on Iran, effectively turning the Strait of Hormuz into a restricted zone for shipping. Roughly 20 percent of global oil and natural gas passes through that waterway. Global oil prices surged to nearly $120 per barrel, the highest since 2022. Qatar, responsible for a fifth of global LNG supply, halted production amid the conflict, causing European and Asian natural gas prices to double.
Pennsylvania generates a large share of its electricity from natural gas. When global gas markets tighten, the cost increase flows straight into what PA homeowners pay each month. Natural gas prices are projected to climb to $5.12 per MMBtu within the next year, and wholesale energy markets are already pricing in higher costs through 2027.
Demand is also surging from an unexpected direction. AI data center growth alone added an estimated $940 million to residential energy costs in Pennsylvania in a single recent year. The US administration is pushing to expand AI infrastructure and will support whatever capacity is needed to make that happen, which means electricity demand from these facilities is going to keep growing. Pennsylvania homeowners are effectively subsidizing that demand through higher capacity charges on their own bills.
None of these forces are within a homeowner’s control. But reducing how much energy a home consumes is.
1. Tariffs Are Pushing Material Costs Higher at the Same Time
While energy bills climb, the materials used in roofing and window replacement are climbing right alongside them.
Section 232 tariffs on steel and aluminum now sit at 50 percent, and those tariffs extend beyond raw materials to finished products that contain them: metal roofing panels, flashing, fasteners, and window frame components.
The National Association of Home Builders has documented that building material costs have risen 34 percent since December 2020, well ahead of general inflation over the same period. The Producer Price Index for aluminum mill shapes jumped 33 percent year-over-year in January 2026, and steel mill products rose 20.7 percent, according to data cited by the Associated General Contractors of America. Tariffs on aluminum, steel, and copper remain uncapped under Section 232.
Leading roofing manufacturers implemented price increases of 6 to 10 percent in early 2025, and industry analysts have noted that those increases established a new cost baseline for 2026 projects, not a temporary fluctuation. For homeowners planning a roof or window replacement, every month of delay is a month of price exposure with no projected relief.
2. Pennsylvania’s Housing Stock Is Among the Oldest in the Country
The urgency would be easier to set aside if Pennsylvania’s homes were newer. They are not.
The median age of housing in Pennsylvania is 57 years, making it the fourth-oldest housing stock in the country, behind only New York, Massachusetts, and Rhode Island. A full quarter of occupied housing units were built before 1940. In Schuylkill County, the median year of construction is 1944. Across central and eastern Pennsylvania, from the Lehigh Valley to the Poconos to York County, thousands of homes are operating with aging roofing systems and windows that predate modern energy codes.
According to US Census data, homes built before 1940 are nearly 30 times more likely to be in inadequate condition and cost nearly 10 times more in annual routine maintenance than homes built after 2022. That figure does not even account for the energy hemorrhaging through poorly insulated building envelopes, outdated roofing materials, and windows that let conditioned air escape month after month.
The share of Pennsylvania homes 54 years or older increased from 28 percent in 2013 to 34 percent in 2023. The replacement cycle is not keeping pace with the need.
Part of the problem is that very few companies in the state specialize in energy-efficient roofing and window replacement under one operation.
Most contractors handle one or the other, and many subcontract the installation to crews they do not directly manage. One company worth noting is American Remodeling Enterprises, Pennsylvania’s top energy-efficient roofing and window replacement contractor, operating since 1982, headquartered in Schuylkill Haven with additional offices in York, Selinsgrove, and Scranton.
Why 2026 Is the Window
Three forces are converging that make acting in 2026 more favorable than waiting.
First, energy costs are still climbing. Every month a homeowner waits is a month of higher bills that could have been partially offset by more efficient products.
Second, material costs driven by tariffs are not projected to decrease. Steel and aluminum tariffs remain in effect, manufacturer price increases from 2025 have become the new baseline, and no policy reversal is on the horizon. The project a homeowner prices today will cost more six months from now.
Third, federal tax credits and utility rebates for qualifying energy-efficient upgrades are available now. These programs operate on specific funding windows and are not guaranteed to remain at current levels indefinitely. Homeowners who act while both the incentives and current pricing are in place capture the most value.
The Bottom Line
Pennsylvania homeowners are caught between rising energy costs, the fourth-oldest housing stock in the country, and a material pricing environment being pushed higher by global conflict and trade policy. None of those forces are going to reverse on their own.
What homeowners can control is the efficiency of their building envelope. A new energy efficient roof and modern replacement windows are two of the highest-impact upgrades available, and the financial case for making those upgrades is stronger right now than it has been in years.
