The cost of living is going through the roof, and many people are struggling to make ends meet. If you're a homeowner, you deal with a lot of financial strain; upkeep, repairs, mortgage payments. Costs quickly add up. Unfortunately for homeowners, when it comes to residential electricity costs, prices are only set to increase as the years go on.
While electricity costs are rising, renewable energy costs are lowering. If you're looking for a way to escape the costly bill of powering your home, it's time to consider going solar.
Residential Electricity Forecast
The forecast for residential electricity prices is an average of 13.1 cents per kWh, which is a 1.2 percent increase since 2019. 13.1 cents. Doesn't sound like too much, right?
What people tend to gloss over is that it's per kWh. So, how much electricity does the average American home use in kWh? The U.S. Energy Information Administration estimates that number to be 914 per month, or 10,972 annually.
What's worse is that the EIA estimates residential electricity prices will see another 1.2 percent increase in 2021.
How Likely Are Prices to Rise?
Unfortunately, residential electricity prices will likely continue to rise as the years go on, and that's due to several reasons.
Many predict that the more we expose America's natural gas supply to international markets, the more we can expect prices at home to rise. Additionally, due to the way that we retrieve and use those natural resources, global warming is on the rise. Increased temperatures in turn drive up the need and demand for electricity, as people try to cool their homes to combat the heat. As the Earth continues to warm, homeowners will need more and more electricity. This demand is only set to drive prices up.
The EIA forecasts increased electricity prices as the years go on, with no sign of slowing.
Which States Are Hardest Hit by Electricity Costs?
Take a look at this map from the Global Energy Institute that shows 2020 average electricity retail prices. (Since this map was created, Texas has leapfrogged over its neighbors and now has some of the highest rates in the country.)
Don't rejoice too much if you're not currently living in a state that indicates a yellow or red rating, as all projections indicate increased costs throughout the United States over the years. Now is the time to start planning out your energy future, especially if you're in a gray, blue, or dark blue state, so that you can have a renewable energy system ready to go before increased rates hit you hard.
How Much Could I Save by Switching to Solar Energy?
Ready to see just how much you could save by going solar? Our solar calculator can help. See how much you can reduce your electricity bill before connecting with local solar installers.
When you switch to renewable energy, you're not just saving on your electricity bill. Thanks to the number of state incentives that are available, homeowners can save a significant amount on the cost of installing their solar system, along with federal tax credits. You can learn more about local solar incentives here!
Solar Panels: The Affordable Energy Solution
It's true that solar panels were once quite costly, as they were new technology. Today, thanks to:
- Improvements in product design
- Manufacturing efficiency
- Increased installation experience
- Renewable Portfolio Standards programs
Solar panels are a cost-effective way for the average homeowner to power their home. Plus, with the number of perks and tax breaks that come from solar energy, homeowners can start saving money right away. Some may even be so lucky as to qualify for $0 down installation. To see if you qualify for such an offer, connect with local installers today.
In addition to helping homeowners save money, solar panels are more beneficial for the environment than the continued burning of fossil fuels. They reduce air pollution and water usage, while also working to reduce our overall dependence on finite resources. Solar energy also aids in fighting climate change. You can slow global warming and reduce your carbon footprint while saving money!
Don't Suffer From Rising Costs—Go Solar Today!
It's easier than it has ever been to go solar. Instead of dealing with increasing electricity costs year over year, you can make the switch to solar energy for immediate savings.
Say goodbye to costly electricity bills and hello to tax breaks and more money in your pocket, compare solar installation quotes with help from EnergyBillCruncher.