As Calgary moves into 2025, residents and businesses must prepare for anticipated shifts in electricity and natural gas prices. Several factors, including regulatory changes, market dynamics, and economic conditions, will influence future energy costs in the city.
This forecast examines electricity rates, natural gas prices, and how renewable energy, such as solar power in Calgary, could provide a cost-effective solution.
Electricity Rates In Calgary 2025
Starting January 1, 2025, Calgary’s electricity pricing will be determined by the new Rate of Last Resort (ROLR), which replaces the former Regulated Rate Option (RRO). This structure ensures a fixed rate for two years, providing residents with stability and predictability in energy costs.
The Alberta Utilities Commission (AUC) has set an energy charge of $0.1206 per kilowatt-hour (kWh) for residential customers under this rate plan. An additional administration charge of $0.4134 per day will also apply.
The shift to ROLR pricing means consumers will no longer face the dramatic month-to-month fluctuations seen in the past under the RRO. The goal is to create a more predictable energy market while still allowing consumers to explore competitive retail energy plans if they choose.
Beyond the new pricing model, the City of Calgary has adjusted its electricity franchise fee structure, resulting in a lower average monthly fee for residents. In 2025, the franchise fee is projected to be $7.91 per month, a decrease from the estimated $11.24 in 2024.
This change aims to keep costs more predictable and less dependent on volatile energy prices, which could help ease financial pressure for homeowners and businesses alike.
Natural Gas Prices Forecast For 2025
Natural gas prices in Calgary have been volatile in recent years, largely due to supply chain constraints and fluctuating demand.
In 2024, the AECO hub price averaged around $2.10 per gigajoule (GJ), but experts anticipate a rebound in 2025. Projections suggest that natural gas prices will rise to an average of $3.90/GJ, influenced by increasing demand and a more balanced supply.
For Calgary residents, this price increase will be reflected in higher monthly utility bills. The city has responded by adjusting the natural gas franchise fee structure.
In 2025, the average monthly franchise fee for natural gas is expected to be $8.33, up from $7.25 in the previous year.
The increase is attributed to rising commodity costs, though the city plans to introduce a more fixed-rate approach to provide consumers with greater cost predictability. Given the role of natural gas in home heating, these rising costs may be particularly impactful during winter months.
Homeowners should explore energy efficiency measures, such as improving insulation, upgrading heating systems, and using programmable thermostats to manage energy consumption more effectively.
Energy Market Trends In Calgary 2025
Several key factors will shape Calgary’s energy market in 2025:
- Regulatory Adjustments: The transition to ROLR pricing means consumers will have fewer surprises in their monthly energy bills. However, those on floating-rate contracts could still see market fluctuations.
- Economic Recovery & Demand Growth: As economic conditions stabilize, industrial and commercial electricity demand is expected to rise, potentially putting upward pressure on energy prices.
- Weather-Related Uncertainties: Unpredictable weather patterns could drive increased energy consumption, especially during peak winter and summer months, influencing electricity and natural gas rates. A great example of this was the hail storms in Calgary 2024.
- Renewable Energy Expansion: More Calgary homeowners are adopting solar power to offset high electricity costs. Increased government incentives and declining solar panel costs are making this transition more appealing.
Managing Utility Costs In Calgary 2025
Given the expected rise in energy prices, Calgary residents should consider strategies to manage their utility bills. Some effective measures include:
- Comparing Fixed and Variable Energy Plans: Switching to a competitive retail energy provider may help consumers lock in lower rates for electricity and natural gas.
- Home Energy Efficiency Improvements: Upgrading to energy-efficient appliances, adding insulation, and using LED lighting can significantly reduce overall electricity consumption.
- Smart Home Technology: Using smart thermostats and energy monitoring systems can help regulate electricity and gas usage more effectively.
Solar Panels in Calgary: A Sustainable Solution
With Calgary electricity price predictions pointing to sustained costs in 2025, more homeowners are looking at renewable energy as a cost-saving alternative. Solar panels are becoming an increasingly viable solution for residents seeking energy independence and lower utility bills.
Benefits of Solar Energy in Calgary
- Cost Savings: Solar energy can significantly reduce monthly electricity bills, especially as utility rates rise.
- Government Incentives: Federal and provincial programs offer financial incentives to help homeowners invest in solar power.
- Increased Home Value: Properties equipped with solar panels often have higher resale values.
- Environmental Impact: Solar power reduces reliance on fossil fuels, contributing to a cleaner energy future.
With Calgary’s ample sunlight throughout the year, investing in solar energy can be a practical and financially rewarding decision.
Homeowners who install solar panels can benefit from net metering, which allows them to sell excess energy back to the grid, further offsetting costs.
What’s Next for Calgary’s Energy Market in 2025?
As Calgary continues to adapt to evolving energy market trends, residents and businesses will need to stay informed about regulatory changes and pricing structures. While electricity rates and gas prices may see some fluctuations, proactive measures like improving energy efficiency and adopting renewable energy solutions can help consumers mitigate rising costs.
The transition to ROLR pricing marks a significant shift in how electricity rates are managed, providing greater stability but also requiring consumers to stay engaged with their energy options.
Meanwhile, the projected rise in natural gas prices underscores the importance of exploring alternative heating solutions and smart energy management.
Ultimately, staying ahead of these changes will help Calgary residents manage their utility costs effectively and make informed decisions about their energy consumption.
Price of Electricity in Calgary – Our FAQs
Will Calgary have power outages in 2025 due to price changes?
No major outages are expected, but demand fluctuations and extreme weather could impact reliability and potential spikes in cost of electricity.
How does an old electrical system impact electricity bills in Calgary?
Old systems waste energy, raising bills. Upgrading wiring and panels improves efficiency and lowers costs.
Are there new rebates or assistance programs for electricity costs?
Government programs may offer rebates or subsidies. Check official Calgary or provincial websites for updates.
How will commercial electricity rates change in 2025?
Business rates may rise with demand and regulatory shifts. Companies should explore fixed-rate contracts or efficiency upgrades.
Can shifting energy use to off-peak hours lower electricity bills?
Calgary does not have time-of-use pricing yet, but reducing peak-hour usage can still help lower bills.
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Investing in solar power can be an effective solution for homeowners looking to offset rising energy costs. At Panel Upgrade Experts, we specialize in professional solar installation services in Calgary, helping residents transition to renewable energy.
Whether upgrading an existing electrical panel or installing a full solar system, working with trusted professionals ensures a smooth and efficient process.
Contact us to learn more about how solar power can reduce energy bills and give you energy independence.