Energy Costs this Winter

Has your heat bill been higher this winter? Heating costs overall are predicted to be higher this winter – and we have definitely been feeling the effects!

One reason for the volatile energy prices that we have been experiencing is because of high commodity prices, especially the price of wholesale fuel. Since fuel prices have increased, this effect has trickled down to households’ energy bills. This increase in volatility is partially due to the Russian invasion of Ukraine this past year.

Additionally, winter is expected to be more than 4% colder this year than last year. The annual report from the Department of Energy Resources (DOER) cites that households using natural gas for heating will experience a 28% increase in electricity prices from last year, homes using oil will experience a 63% increase, and homes using electricity will experience a 57% increase.

The charts below show average fuel prices from the winter of 2014-2015 to this winter. You can see the steady increase over the past few years, then a large spike in all wholesale prices this winter. These numbers are averaged across all states and distributors in the US.

What can you do about this as a customer? 

First off, it is always good practice to utilize energy efficiency strategies. Turning off the lights, turning down the heat when you are not home, installing LED lights and other energy efficient appliances are all ways to reduce your energy consumption, and thus your electricity bill. 

However, if you really want to make a dent in your electricity bill, solar panels are the way to go. According to the Energy Information Agency (EIA), households in the United States consume around 29,000 watts of electricity per day, on average. Accordingly, energy usage varies depending on the number of residents in the household, the size of the house, etc.

Just a  10 kW solar panel system provides 10,000 watts of energy per hour at peak production. This averages out to 30 – 40 kWh per day. Actual amounts vary greatly depending on location or time of year. But nonetheless, solar panels have the potential to take a big dent out of, or potentially eliminate, your electricity bill.

Contact Us

If your energy bill has increased and you are ready to go solar, give us a call or fill out our contact form here today!