Utility Rates: What Does Our Future Hold?

By - Alex Hay
18.07.23 02:22 PM

Spoiler: Home Solar is the Answer

How long have you owned your home? Whether it has been twenty years or two, Think back to that first month, think back to all the fun (stressful) projects you had planned. All the walls that needed new paint, the potential bar-area in the basement, the new patio furniture you were going to pick out, the significantly-lower electric bill, the…. Wait what? 

That’s right. It may not be news to you, but our electric rates are going up, and have been for decades. Not super-surprising, I mean “everything inflates,” right? So why shouldn’t our electric bill? Well, the problem is not that our electric bills are getting fatter and fatter every month, the problem is HOW MUCH fatter: Electricity prices for homeowners jumped, on average, 14% in 2022. That’s roughly DOUBLE the rate of general inflation that same year, and keep in mind: 2022’s inflation level was significantly higher than any year in the previous ten! That is a major issue, the charges we are seeing on our monthly electric bills are significantly outpacing record-high general inflation! The other issue: once we buy a home, we have no choice but to buy electricity from the utility company in our area. Sure would be nice if, when we closed on our home, we could research and meet with several utilities to compare. We could review offerings, pricings, etc., the same way we do with cable and internet providers when we move in. Sadly, that is not the case, and we have to grit our teeth and bear our bills climbing higher and higher and higher and…. You get the picture. 

There really aren’t many signs suggesting these rate-hikes will ever stop, either. Will the rate-inflation slow down? Possibly. But think about where we’re heading as a society - electrification is EVERYWHERE. One quick example: Electric cars are the fastest growing vehicles on the market, yet currently occupy a small percentage (3%) of total vehicles on the road. As more and more EVs hit the streets and more and more gas-guzzlers hit retirement, what do you think that will do to our monthly electric bills? Supply and Demand. The power grid will struggle to keep up, and utility companies will continue to jack-up rates to facilitate the high demand, and us lucky homeowners will be stuck holding the bag once again, right? WRONG! There is a solution that protects homeowners from exploding electricity rates, simply solving your own demand by creating your own personal supply with rooftop solar!

Having solar panels installed on your roof or in your yard turns your home into your very own power plant! You use the energy you produce, then you either install a battery or (for most utility companies) SELL your unused energy to your utility company who will store it for you to use when you need it! Think of all the savings! You are protecting yourself from your electric company trying to force you to foot the bill for increased electricity demand or grid repairs. Not to mention a massive 30% tax credit from the federal government and, depending on the state in which you reside, a state tax credit as well - more icing on the cake!

As society continues to grow, expand and electrify, the solution to your utility rate inflation is simple: GO SOLAR!

Alex Hay