The Truth About Rising Electricity Rates and How to Break Free by Going Solar

As of January 2023, New York (#8) and Vermont (#10) ranked amongst the states with the highest residential electricity rates in the U.S. Thankfully, many of these states, as well as the federal government, have ambitious goals to decrease our overall reliance on fossil fuels. These initiatives are inspiring (and incentivizing!) people to move to cleaner, greener energy sources. And, as utility companies continue raising their rates, more and more homeowners are turning to solar power as a way to save money on their electric bills.

Where do rising rates come from?

It’s important to understand who sets utility rates and how these ever-increasing rates are determined. In New York State, rates are determined by the Public Service Commission (PSC), an independent state agency responsible for regulating the rates for electric, natural gas, water, and telecommunications services. In Vermont, the Public Service Board (PSB) monitors and adjusts rates based on a variety of factors, including the cost of providing service, the cost of fuel and other inputs, the impact of rates on consumers, and the need for utility companies to earn a reasonable return on investment.

For any proposed rate changes by a utility company, these state agencies conduct a thorough review, including public hearings and an analysis of the utility company’s finances. This ensures rates are reasonable for both the utility company and its customers. Recently, however, we’ve seen both New York and Vermont electricity rates begin to skyrocket…

Gain Energy Independence

In response to rising electricity rates, homeowners who go solar can actually lock in their energy costs, gain energy independence, and save thousands of dollars compared to what they would have paid the utility company without going solar.