Third-party energy suppliers sell electricity through your existing utility account. For most of us, that’s Pepco. Where local rules allow, you can choose a third-party supplier instead of your utility’s default supply to opt for cleaner energy sources or lower rates. These suppliers differ from solar installers, because they’re not able to offer rooftop solar.
At Uprise Solar and Roofing, we help homeowners across Washington, DC, Maryland and Northern Virginia understand their solar and energy options. That starts with knowing what is on your electric bill, what an offer includes, and how your roof and energy needs fit together.
Why third-party energy suppliers exist
Third-party energy suppliers exist because some jurisdictions opened electricity supply to competition. This gives customers more choices, a system called retail choice.
Your electric service has two main parts:
- Supply: The electricity you buy.
- Delivery: The wires, equipment and service that bring electricity to your home.
A competitive supplier handles the supply side. Your local utility still delivers the power and responds to outages.
For example, a Pepco customer who switches to a third party supplier still pays Pepco’s delivery charges. If you keep the default supply, you receive Pepco’s Standard Offer Service, often called SOS.
Electricity suppliers and solar PPAs are different
An electricity supply offer and a rooftop solar agreement provide different services.
| Option | What it means |
| Third-party electricity supplier | Sells you grid electricity through your utility account. Enrolling in this offer does not put solar panels on your home. |
| Solar installer | Designs and installs a solar system at your property. |
| Rooftop solar PPA | A provider owns solar panels installed at your property. You receive the electricity they produce at the rate in your agreement. |
A rooftop PPA involves actual solar equipment at your home. The provider owns the system, while a solar installer completes the installation. The same business may fill both roles.
The phrase “third-party ownership” sometimes describes a solar PPA. That is different from switching to a third-party retail electricity supplier.
Learn more about how a rooftop solar PPA works, including the terms to review before signing.
Where homeowners can choose an energy supplier
Not every jurisdiction allows third-party energy suppliers to serve homeowners. Eligibility also varies by utility territory and customer type.
| Location | Residential electricity choice |
|---|---|
| Washington, DC | Customers can choose a licensed supplier or stay with Pepco’s default supply. |
| Maryland | Supplier choice is allowed, subject to state protections, customer eligibility and available offers. |
| Virginia | Choice is more restricted. Current law bars residential customers of Dominion Energy Virginia and Appalachian Power from switching under the retail-choice provision. Other utility territories and customer types have separate rules. |
Check options through DC Power Connect or Maryland Electric Choice. Virginia’s retail electricity competition law sets different limits.
Maryland has tightened its supplier rules, including restrictions on variable rates and a ban on residential supplier early termination fees. Its 2026 Utility RELIEF Act permits certain variable products and changes other contract requirements. Therefore, older descriptions of unrestricted teaser-rate plans may not reflect Maryland’s current rules.
Natural gas has separate rules. For example, Washington Gas offers supplier choice in Virginia. Rooftop solar and solar PPAs also follow separate rules from retail electricity switching.
Third-party energy suppliers you may recognize
Examples on DC’s approved supplier list include:
- WGL Energy Services
- CleanChoice Energy
- Constellation NewEnergy
- Direct Energy Services
- MPower Energy
These names may help you identify a company on your bill or a sales offer. Each supplier has its own products and terms. A license does not guarantee an available residential offer at your address.
When switching energy suppliers can help
Third-party energy suppliers may offer a competitive price, a fixed rate for a set period, or a renewable-energy product.
For some households, a lower supply rate can reduce costs. For others, predictable pricing or renewable-energy purchasing may matter more. However, savings depend on the contract and the utility rate you compare it with.
A fixed rate does not mean a fixed bill. Your electricity use, delivery charges and other applicable fees still affect the total.
Compare the supplier’s price with the utility’s equivalent supply price. Dividing your entire bill by your usage includes delivery costs and can make an offer look cheaper than it is. DC’s consumer guidance recommends checking the price, guarantee period and additional costs.
How third-party energy suppliers use introductory rates
A low starting price deserves a closer look.
Depending on the contract and local rules, an introductory rate may expire. You could then move to a variable rate or a higher renewal price. A few cheaper bills can be followed by costs that outweigh the early savings.
DC’s Attorney General has warned residents about this pattern.
Here is a hypothetical example using 800 kilowatt-hours each month:
| Supply arrangement | First 3 months | Next 9 months | Annual supply cost |
|---|---|---|---|
| Comparison rate stays at 16¢ per kWh | $384 | $1,152 | $1,536 |
| Supplier charges 12¢, then 22¢ per kWh | $288 | $1,584 | $1,872 |
The introductory offer saves $96 at first. Over the full year, however, the household pays $336 more.
These figures illustrate the math, not current offers. Actual usage and utility rates change, and local rules govern which plans suppliers can sell.
Before enrolling, find out when the price ends, how renewal works, and whether any cancellation charge is allowed and applies.
What renewable energy supply really means
Third-party energy suppliers may advertise electricity associated with wind or solar farms. These products commonly use renewable energy certificates, or RECs, to document their renewable-energy claims.
A REC represents the environmental attributes of one megawatt-hour of renewable generation. Certificates can accompany electricity purchases or be sold separately. Suppliers retire them to support the renewable claims associated with a product.
This does not create a dedicated connection from a distant wind farm to your house. Your electricity still arrives through the shared grid.
RECs are a recognized way to account for renewable generation. Still, you should understand what your premium pays for. Ask about the renewable percentage, generation sources, project locations and independent verification.
A renewable supply plan can support your environmental preferences. It does not mean you are getting rooftop solar.
How to handle a door-to-door energy offer
A salesperson may care about clean energy and still give an incomplete explanation of the agreement. Their enthusiasm does not answer questions about future prices or contract terms.
Ask for the company’s name, identification and a written offer. Take time to read it before deciding.
Be cautious if someone claims to represent Pepco or the government while asking to inspect your bill. DC’s Attorney General also warns about claims that customers must switch suppliers.
Keep your account information private until you have verified the company and decided to enroll. Clear, accurate explanations should be the standard for every energy business, including Uprise.
Why Uprise recommends returning to Pepco before solar
For Pepco customers preparing to install solar with Uprise, we recommend canceling third-party electricity supply and returning to Pepco’s Standard Offer Service.
Your panels will serve your home first. Excess production flows to the grid, where solar net metering determines how it is credited.
A separate supplier agreement adds another set of billing terms to review. Pepco’s DC tariff includes provisions for net-metered customers with competitive suppliers, with supplier charges governed by their agreements.
Returning to Pepco removes that separate supply contract. It also gives our team a consistent basis for explaining expected billing and savings.
This is Uprise’s recommendation, rather than a universal requirement for installing solar. Pepco’s DC tariff also addresses customers with competitive suppliers.
We are not recommending that you cancel a rooftop solar PPA. Your solar PPA and your utility electricity supply are separate agreements.
Review applicable cancellation terms, confirm the switch date, and keep your Pepco electric service active.
Questions to ask third-party energy suppliers
Get clear written answers to these questions:
- What is the supply price per kilowatt-hour?
- How long does that price last?
- What happens after the initial period?
- Are there monthly fees or other charges?
- Does the contract renew automatically?
- What cancellation rules apply?
- How does the price compare with the utility’s default supply?
- If I go solar, how will you handle billing and exported electricity?
Also confirm exactly what you are signing: an electricity supply contract or a rooftop solar agreement.
Talk with Uprise Solar and Roofing
If you are considering solar, start with your electric bill and your roof.
Uprise Solar and Roofing provides residential solar installation and roofing services across DC, Maryland and Northern Virginia. We can help you understand your current supply arrangement and review your home’s solar potential.
Schedule a conversation with Uprise. We will walk through your bill, roof condition and solar options so you can make an informed decision.
Information reviewed October 2026. Supplier availability and local rules can change.
