FirstEnergy Overview
FirstEnergy Corp is one of the largest investor-owned electric utilities in the United States, serving approximately 6 million customers across five states. The company operates through various regulated utility subsidiaries, each following the solar policies of its state.
Service area: OH, PA, WV, MD, NJ
Customers: ~6 million total
Average rate: $0.13-0.15/kWh (varies by state)
Net metering: Varies by state and subsidiary
Solar rating: ★★★☆ (Varies significantly) (Source: EIA Electric Power Monthly)
Because FirstEnergy operates through separate subsidiaries in each state, your solar experience depends heavily on which subsidiary serves you. Net metering, interconnection processes, and incentives all vary by state.
Subsidiaries by State
FirstEnergy Operating Companies
| State | Subsidiary | Service Area | Customers |
|---|---|---|---|
| Ohio | Ohio Edison | Northeast/Central Ohio | ~1 million |
| Ohio | The Illuminating Company | Cleveland area | ~760,000 |
| Ohio | Toledo Edison | Northwest Ohio | ~310,000 |
| Pennsylvania | Penn Power | Western PA | ~160,000 |
| Pennsylvania | Met-Ed | Eastern PA | ~560,000 |
| Pennsylvania | Penelec | Central PA | ~590,000 |
| West Virginia | Mon Power | Northern WV | ~395,000 |
| West Virginia | Potomac Edison | Eastern WV | ~145,000 |
| Maryland | Potomac Edison | Western MD | ~275,000 |
| New Jersey | JCP&L | Central NJ | ~1.1 million |
Net Metering Policies
Net Metering by State
| State | Net Metering | Credit Rate | Key Details |
|---|---|---|---|
| Ohio | Net billing | Generation rate only | Not full retail; exports paid at wholesale-ish rates |
| Pennsylvania | Full retail | 1:1 kWh credits | Good net metering; 50 kW residential limit |
| West Virginia | Limited | Avoided cost | Weak policies; check current rules |
| Maryland | Full retail | 1:1 kWh credits | Good policies; RPS supports solar |
| New Jersey | Full retail | 1:1 kWh credits | Excellent policies; strong solar market |
Ohio Net Billing (Special Note)
Ohio FirstEnergy subsidiaries (Ohio Edison, Illuminating Company, Toledo Edison) use net billing, not traditional net metering. This is a critical distinction:
- Export compensation: Generation rate only (~$0.04-0.06/kWh)
- Not retail rate: You don't get full ~$0.13-0.15/kWh for exports
- Impact: Self-consumption is more valuable than exports
- Strategy: Size system for daytime usage, consider batteries
Electric Rates by State
FirstEnergy Rate Comparison
| State | Average Rate | Solar Value | Notes |
|---|---|---|---|
| Ohio | ~$0.13-0.14/kWh | Moderate | Net billing reduces export value |
| Pennsylvania | ~$0.14-0.16/kWh | Good | Full net metering helps |
| West Virginia | ~$0.12-0.13/kWh | Lower | Low rates + weak policies |
| Maryland | ~$0.13-0.15/kWh | Good | Full net metering + incentives |
| New Jersey | ~$0.15-0.17/kWh | Excellent | High rates + strong policies |
State Incentives
Incentives by State
| State | State Tax Credit | Other Incentives | Rating |
|---|---|---|---|
| Ohio | None | Property tax exemption | ★★☆ |
| Pennsylvania | None | SRECs available | ★★★ |
| West Virginia | None | Limited programs | ★☆☆ |
| Maryland | None currently | SRECs valuable; property tax exemption | ★★★★ |
| New Jersey | None | TRECs/SRECs; property tax exemption; sales tax exemption | ★★★★★ |
2026 Federal Tax Credit
PPA/Lease: The Section 48E credit (30%) remains available through December 31, 2027. The solar company claims the credit and passes savings to you through lower payments. (Source: IRS guidelines and DSIRE Database)
Impact by FirstEnergy State
| State | Impact of Federal Credit Loss | Alternative Options |
|---|---|---|
| Ohio | Significant—already challenged | PPA/Lease; focus on self-consumption |
| Pennsylvania | Moderate—SRECs help offset | PPA/Lease; SREC income |
| West Virginia | Significant—economics marginal | PPA/Lease may be only viable option |
| Maryland | Moderate—SRECs valuable | SRECs; PPA/Lease |
| New Jersey | Lower—strong existing incentives | TRECs/SRECs make purchase still viable |
Interconnection Process
General FirstEnergy Interconnection
The interconnection process is similar across FirstEnergy subsidiaries, though timelines can vary:
| Step | Timeline | Notes |
|---|---|---|
| Application | Day 1 | Installer submits to subsidiary |
| Utility review | 15-30 days | Technical review |
| Approval | 5-15 days | Authorization to install |
| Installation | 1-3 days | Physical install |
| Local inspection | 5-15 days | Varies by municipality |
| Final inspection | 10-20 days | Utility meter setup |
| PTO | 5-10 days | Permission to Operate |
Total timeline: 45-90 days typical, varying by state and local permitting requirements.
Tips by State
Ohio (Ohio Edison, Illuminating Co, Toledo Edison)
- Understand net billing: Exports worth less than retail
- Size for daytime usage: Self-consumption is key
- Consider batteries: Store excess vs. export cheap
- Evaluate PPA/Lease: May improve economics
Pennsylvania (Penn Power, Met-Ed, Penelec)
- Full net metering: Good value for exports
- Explore SRECs: Additional income stream
- Good solar market: Compare multiple installers
- 10-14 year payback: Reasonable economics
West Virginia (Mon Power, Potomac Edison)
- Challenging market: Low rates + weak policies
- PPA/Lease recommended: Leverages remaining federal credit
- Long payback: 15+ years for purchased systems
- Consider future rates: Lock in now before increases
Maryland (Potomac Edison)
- Good policies: Full net metering
- SRECs valuable: Additional income
- Property tax exempt: Solar doesn't increase taxes
- 11-14 year payback: Reasonable economics
New Jersey (JCP&L)
- Excellent market: Strong incentives + high rates
- TRECs/SRECs: Significant additional value
- Full net metering: Good export compensation
- 8-12 year payback: Among best in FirstEnergy territory
Frequently Asked Questions
Does FirstEnergy have net metering?
It depends on the state. Pennsylvania, Maryland, and New Jersey have full retail net metering. Ohio uses net billing (lower export rates). West Virginia has limited policies. Check your specific state and subsidiary.
Which FirstEnergy state is best for solar?
New Jersey (JCP&L territory) has the best solar economics due to high rates, full net metering, and TREC/SREC programs. Pennsylvania and Maryland are also good. Ohio is moderate, and West Virginia is challenging.
What subsidiary serves my address?
Check your electric bill—it shows which FirstEnergy subsidiary serves you. You can also use FirstEnergy's website to look up your service territory by address.
Can I get the federal tax credit with FirstEnergy?
For purchased systems, the federal 30% credit (Section 25D) expired December 31, 2025—regardless of which FirstEnergy subsidiary serves you. PPA/Lease agreements still benefit from the 30% Section 48E credit through 2027.
What are SRECs and do they apply to FirstEnergy states?
SRECs (Solar Renewable Energy Credits) are tradeable certificates for solar generation. Pennsylvania, Maryland, and New Jersey have SREC programs that provide additional income to solar owners. Ohio and West Virginia do not have meaningful SREC markets.
What's the typical payback in FirstEnergy territory?
It varies significantly: New Jersey 8-12 years, Pennsylvania and Maryland 10-14 years, Ohio 12-16 years (with net billing), West Virginia 15+ years. These are for purchased systems without federal credit.
Questions About Solar with FirstEnergy?
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