Why Energy Prices are Predicted to Increase
When you examine your energy usage from year to year, you probably have noticed that the costs keep going up. This is something that can be frustrating, especially if you are taking all the steps you can to reduce energy usage, like:
- Getting a programmable thermostat
- Turning off lights when you’re not in the room
- Setting your heat at a lower temperature or your AC at a higher temp
- Using energy-saving appliances and lightbulbs
Even with all these efforts, energy costs are still on the rise. The Energy Information Administration reports that an average household uses about 11,000 kilowatt-hours (kWh) of electricity per year. Your local power company charges a specific rate per kWh for that usage. Nationally, electricity rates have gone up about 71% in the last 20 years, from an average of $70 per month to $120 per month since 2001.
Rocky Mountain Rate Increases
In the Rocky Mountain region, those increases are even higher. Rates have roughly doubled from an average of $70 per month to about $140 since the early 2000s, and they are continuing to go up. In fact, Rocky Mountain Power recently requested a rate increase to fund renewable energy initiatives. So the reality for homeowners is that your electricity is likely to go up in price over time, and if you continue to pay the costs your local power company is demanding, you’re funding their efforts to get renewable energy resources (which they will charge you for in the future).
What Causes Rates to Rise
There are several factors that lead to electricity price increases, including:
- Fuel prices for natural gas, petroleum, and coal
- Weather that impacts or damages fuel supplies (hurricanes, fires, etc.)
- Power plant upkeep and maintenance
- Transportation cost increases to transport fuels throughout the country
- Regulations at the state and federal levels
- Higher demand in extreme weather (hot or cold) that drives energy usage up
All of these factors are likely to increase in the future, which means that rates will continue to rise. Additionally, as mentioned above, many power companies are looking for ways to switch to renewable energy, which means they will increase the cost today to help fund initiatives to make energy cheaper and more sustainable in the future. However, it’s unlikely they will pass along any savings to you once they have that infrastructure in place.
Switch to Solar to Avoid Rate Fluctuations
The best way to avoid the rollercoaster of energy prices on your monthly bills is to switch to solar. You can finance your solar panels and get a fixed monthly cost for a period of time with free solar energy, then once the loan is paid off you’ll be free from the ever-increasing energy prices.
Call Intermountain Wind and Solar today to discuss how easy it is to get your own renewable energy and stop paying high prices for electricity forever.