The price of natural gas is currently at a sixteen-year high… and it's only expected to keep rising. As a result, energy prices have gone up drastically over the last four years, with an estimated 15% culminating increase by the end of 2023. How can you avoid a traditional energy bill that will continue to rise 2%- 5% per year? The answer is a switch to solar. The fixed cost of solar remains steady until it's eventually free.
The Rising Costs of Utilities
The price of electricity has gone up 7.5% nationwide since 2021, and is expected to increase another 3.3% in 2023. This is primarily due to the rising cost of natural gas, the burning of which still accounts for more than 38% of the country’s electricity production.
When compared to the fixed cost of solar electricity, the relative price of traditional utilities biols down to a few key factors:
Natural gas prices are at a 16-year high and are expected to keep rising further
Over the last four years, energy prices have risen steadily, culminating in an estimated 15% increase in 2023
While your energy bill continues to rise in accordance with the price of fossil fuels, solar costs remain steady and fixed
Natural Gas at a Sixteen-Year High
Over the last two years, natural gas prices have actually quadrupled. Largely, this sharp jump has come from a massive increase in demand for natural gas, as a number of power plants in the United States have increased their use of the resource while phasing out the burning of coal.
Additionally, with Russia's recent reduction of natural gas sales, a number of European nations have begun looking in earnest for a new supply to meet their energy needs. This demand has increased the world market price for natural gas, and as a result, U.S. companies have begun exporting as much natural gas as they can.
All of this adds up to higher natural gas prices at home, and subsequently an increase in the cost of electricity generated from traditional fossil fuel-based utilities.
Energy Prices Since 2019
According to the United States Energy Information Administration (EIA), the price of electricity has increased somewhat steadily over the last four years. In January 2019, the average cost of electricity in the United States was 12.47 cents per kilowatt-hour. By July 2022, that number had risen to 15.46 cents per kilowatt-hour.
In the typical U.S. residence that averages around 887 kilowatt-hours per month, this equates to a difference of about 27$ dollars per month... and or about $324 dollars annually. And that number will worsen if natural gas prices continue to increase at their expected rate.
The Fixed Cost of Solar
In contrast to utility costs that can fluctuate wildly based on the price of fossil fuels, residential solar panel systems allow homeowners to pay a fixed cost for electricity. So long as the solar panels are able to offset the home's energy usage needs, the homeowners pay only the fixed monthly charge of owning the system itself.
Regardless of an increase in utility prices, residential solar owners, therefore, remain unaffected by a rise in the price of electricity and increased cents per kilowatt-hour.
Let ION Solar Help You Avoid Rising Utility Costs
A switch to solar power means fixed electrical utility costs, and the freedom to avoid rate increases based on natural gas and fossil fuels. Let the professionals at ION Solar help you make the switch. Request a free solar plan, and see how going solar compares to traditional utility costs.
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Actual savings will vary depending on system production, geography, weather, shade, electricity usage, utility rates, rate increases, and financing options. Savings estimated here assumes utility rate increases annually and stable customer utility usage rates. Contact us to receive a detailed proposal based on your home and energy usage.