Utility and Electricity Price Increase: What You Need to Know
Many people have heard about a recent electricity price increase without appreciating its full significance. Studies have found that electricity prices look like they will be about 20% higher in the summer of 2022 compared to the summer of 2021. There are anecdotes of people who feel that energy costs are so high that they cannot turn on their air conditioning unless they are about to faint.
Naturally, more and more people are turning to solar energy to help lower their utility bills. Other people in Michigan decide to invest in a solar system in order to guarantee that they have their own source of energy, independent of whatever happens to the grid. The more that people understand about why energy prices are increasing, the more inclined they will be to invest in solar energy today.
But what is going on with energy prices that leads many people to invest in solar? How can solar power help when electricity prices are going up?
Electricity Prices Will Continue to Go Up
There are a number of factors that are contributing to rising energy prices. First of all, the economy is going through a time of intense inflation. Inflation naturally means that you get less energy for the same price.
To make matters worse, this economic turmoil is happening in parallel to international conflicts. These conflicts disrupt supply lines, making it much harder to deliver energy. On top of that, trade sanctions mean that countries can no longer buy energy from their traditional trade partners. These factors all lead to more and more pronounced energy shortages worldwide.
When governments have to pay more for foreign energy, this directly increases prices for everyday homeowners, particularly here in the United States. If wars and inflation continue, prices may very well continue to rise indefinitely.
Utility Bills May Go Up Even More
On top of everything else, this is an especially bad time for energy prices to increase. Many places are experiencing the hottest summer on record. That means that more and more people are trying to use fans and air conditioners to keep cool.
Of course, that also means that their utility bills are going up as they consume more electricity.
When so many people try to use extra energy at the same time, an extremely elevated demand arises. When you add this higher demand to the already elevated prices from inflation and international energy shortages, it makes for an especially bad combination. Hence the threat of planned blackouts from the utility.
Respond to a Utility Rate Increase With Solar Power
More and more homeowners are looking for a way out of this vicious cycle of increasing utility costs and destabilized energy supply. Solar power is by far the best solution.
Even if our current energy problems were to magically go away, solar power would continue to provide a steady and strong return on investment.
No matter what else is happening in the world, energy from the Sun will be plentiful. People with solar power systems enjoy their own source of energy that is not dependent on anyone else. On top of that, solar provides significant cost savings.
A Higher Utility Rate Mean Solar Power Pays for Itself Faster
The higher energy prices go, the better it is for people with solar power. How can that be?
For one thing, every unit of power you generate with your solar system is a unit of power that you do not have to purchase from the utility. Additionally, solar systems are configured to automatically send excess energy to the power grid when the household is not using it all. The more expensive electricity is, the more a homeowner can sell their excess solar energy for. That means that higher energy prices help a solar power system to pay for itself even faster.
In fact, the worse things get economically, the faster a solar power system pays for itself. Does this sound too good to be true? Perhaps you even fear that by lowering your bill with solar energy, you must be pushing the burden of high energy costs onto someone else.
In fact, the exact opposite is true. When homeowners enjoy their own solar energy, they decrease the demand for electricity on the power grid. This helps to stabilize the energy supply for everyone.
Lower Utility Bills for Decades to Come
As energy prices continue to go up, those with solar power systems are in a much more secure position than others. The more that you understand about the recent electricity price increase, the better you can assess if solar power is the right decision for you. Regardless of your circumstance, solar power is an investment that can more than pay for itself across time.
To learn more about how solar energy in Upper Michigan can help you maintain energy independence and lower utility bills, reach out and get in touch with us here at any time!