The Truth About Rising Electricity Rates
As of September 2022, 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…
Electricity rates go in one direction: Up!
Despite consumers’ hopes for lower utility bills, the reality is that rising fuel costs, infrastructure upgrades, geopolitical conditions, and government regulations all have a major impact on the price we pay for electricity. Prices will always fluctuate somewhat, but it seems that a long-term upward trend is here to stay.
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.
You’ll always need energy for your home, but always buying power from your utility company is like paying rent instead of owning your home – you pay every month without building any equity or lasting value, and the rates will always go up over time.
When you go solar, you break the cycle of paying for electricity forever.
Don’t wait for electric prices to soar even higher.
Get in touch with our friendly Solar Advisor team today to start your solar journey.