Are you stunned by your skyrocketing electric bill? If so, you’re not alone, and you most likely want answers. New England is known for having high electricity costs, and Massachusetts has among the highest. Many homeowners are shocked by their exorbitant electric bills, especially as costs continue to rise. In this blog post, we’ll discuss the reasons behind excessive electric rates and how switching to solar can mitigate expenses. If you’re a homeowner looking to save on your electric bill, this blog post is the perfect guide for you.
Electric Rates In Massachusetts Rise About 5% A Year
Electric rates in Massachusetts rise about an average of 5% a year. Solaris Renewables provides an energy calculator on our website to help you calculate the cost of your long term spend on electricity. Simply input the cost of your average monthly electric bill into the energy calculator, and we’ll show you an estimate of how much you’ll spend on electricity over a 25-year period. On the same page, we explain why those electric rates are so high and what those numbers mean.
Why Electric Rates Are Higher Than Ever Before
Electric rates are higher now than ever before, and these rate climbs show no signs of stopping in the future. Some Massachusetts homeowners have seen their bills triple within the past two years, and many experts predict that this trend is here to stay.
Fuel Prices
Several factors have caused an uptick in electric costs, but fuel prices are one of the most prominent contributors. Liquified natural gas is one of the most popular and widely used fuels in the United States and New England, as well as petroleum, coal, and oil. Because these fuels are so commonly used, demand for them has increased dramatically. The number of fuel shortages has also increased, resulting in the most alarming American energy crisis in fifty years.
Fossil fuel production is already expensive on its own, but operating costs have risen to compensate for constant production. In turn, your electric bill is repeating the effects. Now, you’re not just paying to use the fuel, but also for the increased amount of services needed to manufacture and transport the fuel. As the energy crisis rages on, electric rates are only going to worsen.
Inflation
Have you noticed that your money doesn’t buy as much as it used to? This is due to inflation, or a general increase in the price of goods and services, as well as the fall in purchasing value. Over time, the dollar loses its value, and money buys less than it did in the past. Although inflation has declined since November 2023, it is still significantly more expensive to live in 2023 than it was a decade ago. Because of inflation, goods and services (such as electricity) cost more than they used to, and homeowners are likely to see this increase reflected in their electric bills. You’re likely paying more now for the same amount of energy that you were using years ago. However, residential solar owners in the US now benefit from the 2022 Inflation Reduction Act which includes a 30% federal tax credit. By continuing to use fossil fuels as your main source of electricity, you’re ineligible for these offers. Your electric bill will continue to reflect increasing inflation trends.
Energy Demand Is Higher Than Ever Before
Energy is integral to many parts of our daily lives. Think about it: we turn on lights, watch television, charge our devices, heat and cool our homes, and so much more. Residential energy consumption in the United States amounts to about 1.51 trillion kilowatts (kWh) a year, which is, to put it simply, a lot of energy usage. Because humans use so much energy, energy resources are in incredibly high demand. When a service is in such high demand, prices typically increase to offset the widespread need. Energy is no exception, and demand is part of the reason why you’re seeing such high electric bills.
Seasonal Demand
Temperature is another factor behind rising electric rates. New England residents in particular are likely going to notice an uptick in their electric bills as winter approaches. Massachusetts typically sees its highest electric prices in January and February, largely because homes utilize heating systems more during the colder months to prevent rot, pipe bursts, and damage to electrical equipment, and many of these heating systems are electric. Plus, personal heating preferences cause many residents to crank their thermostats. Although Massachusetts winters have generally grown warmer because of climate change, temperatures still reach freezing – and occasionally subzero – levels. In non-solar homes, fossil fuels, such as coal, oil, and gas, are burned to produce heat. Demand for non-renewable resources through gas heating also contributes to a greater demand for fossil fuels. Because so many people are using these resources, they are in incredibly high demand, and consumers are paying more to have access to them.
In the summertime, many still blast their cooling systems, pool pumps, and other energy-draining appliances to maintain comfortability and prevent home damage. Massachusetts summers can easily reach the eighties or nineties, and electric rates tend to spike during heat waves or on particularly warm days. As of 2020, 87% of Massachusetts residents reported using air-conditioning equipment such as central air, box units, and ceiling or plug-in fans. The same goes for heating systems: most homes risk damage if they don’t use heating in the cooler months, so most US homeowners turn their systems on, even if they’re only set to moderate temperatures. Temperature regulation systems are turned on for hours (or even days) at a time, requiring copious amounts of energy.
Population Demand
The population is constantly growing, which means the demand for energy increases as well. The more people inhabit the planet, the more homes and spaces there are to light, heat, cool, and much more. The population of the United States increased by over 1.5 million people in 2023 (a 0.5% increase), and the US Census reports that Massachusetts alone saw a 0.27% increase in population from July 2022 to July 2023. Experts even expect the world’s population to increase by about 2 billion within the next 30 years. The more people there are who need access to energy, the more fossil fuels we’ll need to compensate for this new demand. This means that, most likely, your electric bill will not decrease any time soon.
Because there are more people to provide for, more goods and services must be produced more frequently and in higher quantities. For instance, fossil fuels are needed quickly and in large amounts to compensate for the high demand. This means hiring more workers, paying them for longer hours, and possibly investing in additional power plants or other manufacturing sites. By installing solar panels on your home, you’re not only preserving Earth’s non-renewable resources, you’re also saving your money. Supplying the world with enough resources and energy to maintain the population is expensive, but with solar, you don’t have to pay as much for the growing cost of fossil fuels. As a renewable resource, the power of the sun will never run out. Even as the population increases, there’s still enough sunlight for everyone. If you don’t want your bills to reflect excessive demand so heavily, consider switching to solar.
Going Solar To Decrease or Eliminate Your Electric Bill
If you’re looking for a way to decrease your electric bill, consider switching to solar. When you switch to solar, you’re no longer relying as heavily on fossil fuels, so you won’t be paying as much for them. Instead, the sun’s natural power generates energy for your home. The sun is a renewable resource, meaning that there’s an endless supply. Unlike non-solar homes, your primary energy source is the sun, so you won’t experience fossil fuel-related price spikes because of shortages or the costs associated with demand, transmission, and manufacturing. Solar guarantees you a clean, reliable, and cost-efficient energy source with predictable costs.
Take a moment to learn more about solar incentives, which are offered in Massachusetts, Maine, New Hampshire, and more. These incentives include tax breaks, loans, the chance to earn credits on upcoming electric payments, and more.
One of the biggest advantages of solar energy is that Massachusetts homeowners pay off your solar system over time (typically under 10 years) due to return on investment (ROI). Massachusetts residents will especially benefit from switching to solar, as Massachusetts homeowners often see an ROI faster than other regions. Meanwhile, if you continue using fossil fuels, your electric bill is most likely going to continue increasing each year. If you can pay your current utility bill, you can afford to go solar.
As soon as you have solar installed on your home, you stop paying your big electric bill, so that money begins going towards paying off your solar system. As a solar system owner, you are eligible to earn electric credits back through a system called net metering. For instance, when your solar system produces more energy than needed, that extra electricity is sent to the grid, allowing you to earn credits on future bills. These credits can then be used during times when your solar system isn’t producing as much energy (such as during overcast, rainy, or snowy weather), and can decrease your upcoming payments.
Final Thoughts
There is much more to solar power than most people know. A common misconception is that solar only works well in mostly warm climates, but solar panels are equipped to deal with the cold as well. You also don’t even need to worry about having the “perfect” roof for solar panels because there are a number of different solar applications that can be installed on land like in your backyard.
If you wish to reduce your electric bills, consider going solar. If you’re unsure which solar product will best suit your home, Solaris Renewables is here to help you every step of the way!
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