Atlantic Canada's highest electricity rate — on an island that imports 80% of its power from New Brunswick. Here's what you pay and why solar is a smart move.
Prince Edward Island has the highest electricity rates in Atlantic Canada — despite importing most of its power from New Brunswick, which has much lower rates. The paradox comes down to transmission costs, island grid infrastructure, and Maritime Electric's ownership structure. At approximately 19.7¢/kWh blended, PEI residents pay a premium that makes solar energy one of the province's most sensible long-term energy investments. The good news for 2026: Maritime Electric filed no general rate increase, offering a rare year of stability.
| Rate Component | Rate (2026) | Notes |
|---|---|---|
| Customer Charge (fixed) | ~$13.50/month | Fixed monthly fee regardless of consumption |
| Energy Charge | ~16.5–17.0¢/kWh | Flat rate applied to all consumption |
| Distribution Charge | Included in energy rate | Island grid maintenance costs bundled in |
| HST | 15% | PEI's harmonized sales tax on electricity |
| All-In Blended Average | ~19.7¢/kWh | Including customer charge and 15% HST |
⚠️ Island Grid Premium: Part of why PEI pays more than New Brunswick — despite importing NB power — is the cost of maintaining the submarine transmission cables under the Northumberland Strait, operating the island's local distribution network, and the small-scale economics of a grid serving only ~65,000 customers. These fixed costs spread across a small customer base push per-unit rates higher than mainland provinces.
Maritime Electric is Prince Edward Island's sole electricity distributor, serving virtually every home and business on the island. Despite its Maritime name, Maritime Electric is owned by ENMAX Corporation — an energy company based in Calgary, Alberta, owned by the City of Calgary.
🏢 Ownership Structure
Maritime Electric → Owned by ENMAX Corporation → Owned by City of Calgary
This unusual chain means an Alberta municipal corporation owns PEI's electricity
utility. Maritime Electric is regulated locally by the Island Regulatory and
Appeals Commission (IRAC), not Alberta authorities.
⚖️ The Regulator: IRAC
The Island Regulatory and Appeals Commission (IRAC) approves Maritime Electric's
rate applications, reviews capital spending plans, and handles customer complaints.
Rate hearings are public — PEI residents can participate in the process at
irac.pe.ca.
💡 What This Means for You: Unlike a Crown corporation (which returns profits to provincial government as dividends), Maritime Electric returns profits to ENMAX, which returns them to Calgary's city budget. PEI residents are effectively subsidizing Calgary municipal services through their electricity bills — a fact that occasionally generates political debate on the island.
Prince Edward Island's electricity supply mix is unique among Canadian provinces — a combination of mainland imports and local wind generation that makes the island surprisingly green, despite its high rates.
🌬️ PEI's Wind Power Achievement: For its size, PEI has one of the highest proportions of wind power capacity per capita in Canada. On high-wind days, the island can export surplus wind power back to New Brunswick. This renewable foundation means PEI's grid is greener than its rates suggest — solar panels here add to a genuinely clean local grid rather than offsetting coal generation.
⚠️ Cable Vulnerability: PEI's dependence on submarine cables for 80% of its power creates a reliability risk with no mainland equivalent. Cable outages — while rare — can require emergency load shedding or rapid diesel deployment. This vulnerability is one reason some PEI property owners, particularly those on more remote parts of the island, find off-grid solar with battery backup particularly appealing.
PEI holds the unwanted distinction of having Atlantic Canada's highest residential electricity rate. Here's how the four Atlantic provinces compare in 2026:
ℹ️ Why Does PEI Pay More Than NB Despite Importing NB Power? NB Power sells electricity to Maritime Electric at wholesale rates — not at NB residential rates. Maritime Electric then adds: submarine cable transmission costs, local island distribution infrastructure costs, customer service and metering, a regulated return for ENMAX shareholders, and 15% HST. The result: PEI residents pay nearly 28% more than NB residents for power that largely originates in New Brunswick.
At ~19.7¢/kWh — the highest rate in Atlantic Canada — PEI offers solid solar economics. The island's relatively southern latitude (similar to southern Nova Scotia) also provides good solar irradiance, better than many residents expect from a Maritime province.
| System Size | Annual Production (Charlottetown) | Annual Savings at 19.7¢ | Est. System Cost | Simple Payback |
|---|---|---|---|---|
| 3 kW (small home) | ~4,100 kWh/year | ~$808/year | ~$10,000–$13,000 | 12–16 years |
| 5 kW (average home) | ~6,900 kWh/year | ~$1,359/year | ~$15,000–$20,000 | 11–15 years |
| 10 kW (larger home) | ~13,800 kWh/year | ~$2,719/year | ~$25,000–$32,000 | 9–12 years |
| 15 kW (farm / high use) | ~20,700 kWh/year | ~$4,078/year | ~$35,000–$45,000 | 9–11 years |
| Off-Grid (remote island) | Eliminates grid entirely | Full bill + cable risk eliminated | ~$25,000–$50,000 | Variable by property |
*Based on Charlottetown irradiance (~1,380 kWh/kW/year). Assumes 3% annual rate increases and 0.5%/year panel degradation. All figures before HST savings.
🌾 PEI Farm Solar Opportunity: PEI's agricultural sector — potato farming, dairy operations, and processing facilities — consumes significant electricity year-round. Barn rooftops, processing facility roofs, and open fields provide excellent solar siting opportunities. Farm operations with annual electricity bills of $10,000–$50,000 can achieve payback periods of 7–10 years, and agriculture businesses may qualify for federal programs supporting on-farm energy efficiency.
| Household Type | Monthly Usage | Pre-Tax Bill | After 15% HST | Annual Cost |
|---|---|---|---|---|
| Apartment / 1 bedroom | 300–500 kWh | ~$63–$96 | ~$73–$111 | ~$875–$1,330 |
| Small home / 2 bedroom | 600–900 kWh | ~$113–$166 | ~$130–$191 | ~$1,560–$2,290 |
| Average PEI home | ~1,000 kWh | ~$183 | ~$197 | ~$2,365 |
| Larger home / electric heat | 1,500–2,500 kWh | ~$261–$429 | ~$300–$494 | ~$3,600–$5,925 |
| Farm / processing facility | 5,000–20,000 kWh | ~$837–$3,333 | ~$963–$3,833 | ~$11,555–$46,000 |
📈 Rate Outlook: While 2026 brings welcome rate stability, PEI's electricity costs are expected to resume increasing in 2027 and beyond. The island's dependence on NB Power imports means PEI rates are partially exposed to New Brunswick's own cost pressures, including NB Power's nuclear refurbishment costs. Maritime Electric's own distribution infrastructure requires ongoing capital investment. Increases of 3–5% annually are likely from 2027 onward.
Charlottetown's solar resource is nearly identical to Halifax, Nova Scotia — reflecting the similar latitude and Maritime climate. PEI's flat, open farmland also means minimal shading concerns for ground-mounted or rooftop installations.
❄️ Winter Planning Note: PEI winters reduce solar output by approximately 67% from summer peak. Atlantic weather brings frequent cloud cover November through February. Off-grid systems should plan for 5–7 days battery autonomy and a backup generator or wood heat for the November–February period. A steep panel tilt of 55–60° is recommended to shed snow quickly and capture low winter sun angles effectively.
→ Use our Solar Panel Calculator with PEI's winter peak sun hours to properly size your system.
Maritime Electric's net metering program allows residential customers to offset their electricity costs with solar generation and receive credits for surplus power exported to the island grid.
✅ System Size
Up to 100 kW for residential customers. Sufficient for any home installation including larger farm homes.
✅ Credit Rate
Credits applied at the retail rate — you receive full value for exported electricity, not a discounted wholesale rate.
✅ Credit Carry-Forward
Unused monthly credits carry forward. Annual true-up settles any remaining balance at year end.
ℹ️ Grid Reliability Bonus: PEI's submarine cable dependence creates an unusual net metering benefit — during cable outages or high demand events, local solar generation (even if not in a full off-grid configuration) reduces stress on the island grid. This community benefit has made Maritime Electric generally supportive of residential solar growth on the island.
| Year | Blended Rate (pre-tax) | All-In (incl. 15% HST) | Year-over-Year Change |
|---|---|---|---|
| 2020 | ~14.0¢/kWh | ~16.1¢/kWh | — |
| 2021 | ~14.5¢/kWh | ~16.7¢/kWh | +3.7% |
| 2022 | ~15.2¢/kWh | ~17.5¢/kWh | +4.8% |
| 2023 | ~16.2¢/kWh | ~18.6¢/kWh | +6.3% |
| 2024 | ~16.8¢/kWh | ~19.3¢/kWh | +3.8% |
| 2025 | ~17.1¢/kWh | ~19.7¢/kWh | +2.1% |
| 2026 (current) | ~17.1¢/kWh | ~19.7¢/kWh | 0% — No increase |
*Historical figures are approximate based on Maritime Electric rate schedules approved by IRAC. All-in rates include 15% HST.
📈 22% increase since 2020 — then a pause: PEI electricity rates rose steadily from 2020 through 2025, driven by NB Power wholesale price increases, island infrastructure investment, and general cost pressures. The 2026 rate freeze provides welcome relief — but rates are expected to resume increasing in 2027 as NB Power's own cost pressures (nuclear refurbishment, grid upgrades) flow through to wholesale prices that Maritime Electric pays.
Maritime Electric's residential rates in 2026 work out to approximately 19.7¢/kWh all-in, including the fixed monthly customer charge (~$13.50/month), energy charge (~16.5–17.0¢/kWh), and 15% HST. No general rate increase was filed for 2026, so rates remain at 2025 approved levels. This makes PEI the highest-rate province in Atlantic Canada, and the fifth-highest in all of Canada.
Maritime Electric is PEI's sole electricity distributor, owned by ENMAX Corporation (which is in turn owned by the City of Calgary). Despite being owned by an Alberta municipal corporation, Maritime Electric is regulated in PEI by the Island Regulatory and Appeals Commission (IRAC). NB Power supplies approximately 80% of the actual electricity that Maritime Electric distributes on the island via submarine transmission cables.
PEI's population (~170,000) and geographic size make large-scale local electricity generation uneconomical. The province has ~200 MW of wind power capacity, which can supply 20–40% of demand when conditions allow. The remaining gap — typically 60–80% of total consumption — is imported from NB Power via submarine cables under the Northumberland Strait. This import dependence exposes PEI to NB Power's wholesale pricing, which then adds Maritime Electric's distribution costs and profit margin on top.
Yes — PEI's combination of Atlantic Canada's highest rates (19.7¢/kWh) and solid Maritime solar irradiance creates payback periods of 9–12 years for well-sized systems, with 25-year savings exceeding $25,000. PEI's flat farmland also provides excellent, unshaded siting for ground-mounted systems. Farm operations with high electricity consumption can achieve even shorter payback periods of 7–10 years. Use our Solar ROI Calculator to model your specific situation.
Yes. Maritime Electric's net metering program covers systems up to 100 kW. Excess generation earns credits at the retail rate, which carry forward monthly with an annual settlement. Apply through Maritime Electric — allow 8–14 weeks for approval and meter installation. Maritime Electric has been supportive of residential solar as it reduces import dependence and grid stress during submarine cable demand peaks.
No — Maritime Electric did not file a general rate increase application for 2026, providing PEI residents with the first year of rate stability in several years. Rates remain at 2025 approved levels. However, rate increases are expected to resume in 2027 and beyond as NB Power's own cost pressures (including nuclear refurbishment costs) flow through to the wholesale electricity prices Maritime Electric pays.
At ~19.7¢/kWh, PEI has the second-highest rate among Canadian provinces — below only Alberta (22.9¢), but above Nova Scotia (19.1¢), Saskatchewan (18.6¢), Ontario (17.0¢), Newfoundland (15.8¢), New Brunswick (15.4¢), BC (10.97–14.08¢), Manitoba (10.6¢), and Quebec (8.3¢). See our full Canada comparison for the complete breakdown.
See how PEI's ~19.7¢/kWh stacks up against every other province and territory.
PEI electricity rate data sourced from Maritime Electric's IRAC-approved rate schedules as of July 1, 2026. Blended rates calculated at 1,000 kWh/month including customer charge, energy charge, and 15% HST. No general rate increase was filed by Maritime Electric for 2026; rates reflect 2025 approved levels. Power source percentages are approximate annual averages — actual wind generation varies significantly with weather conditions. Solar irradiance data derived from NASA POWER database for Charlottetown (46.24°N, 63.13°W). Savings estimates assume 3% annual rate increases from 2027 onward and 0.5%/year panel degradation. Historical rate figures are approximate based on published IRAC decisions. All figures in Canadian dollars.