Americans Cut Back Spending to Afford Skyrocketing AC Costs

As temperatures reach unprecedented levels this summer, the cost of keeping homes cool is pushing many Americans to make difficult financial decisions. NASA stated, July 22nd, 2024 marked the hottest day globally ever recorded (4). The ongoing heatwaves we have been experiencing are increasing air conditioning (AC) usage more and more forcing families to cut back on essential expenses, including groceries, to keep their homes at a comfortable temperature.

With the continued rise of electricity prices putting a growing burden on many households, taking back your energy independence with solar power can provide a sustainable way to decrease your monthly spend on utilities, such as AC costs.

The Financial Strain of Rising AC Costs

This summer’s record-breaking heat has led to a dramatic increase in AC usage across the board (3). The National Energy Assistance Directors Association (NEADA) reports that the average U.S. household’s electric bill during the summer months is expected to reach $719, an 8% increase from last year, and the highest in the past decade (5). For many families this increase is forcing difficult choices. “Some regions are projected to face a greater rise in average year-over-year summer electricity costs than others. The greatest bill increases are projected to be in the Mid-Atlantic, which include New York, Pennsylvania and New Jersey, and the Pacific region, which includes Washington, Oregon and California,” Utility Dive noted in a recent article (3). New York State in particular has a very high average cost of living, which will only continue to grow going forward.

A survey by an energy comparison platform, found that 1 in 3 American households has had to cut back on groceries to afford their AC bills this summer (7). Additionally, 75% of respondents anticipate that their energy costs will increase further, leading many to cancel summer plans or borrow money to keep up with rising utility bills.

Why are AC Costs Skyrocketing Now?

Several factors contribute to the skyrocketing cost of running air conditioners during extreme heat:

Increased Energy Consumption: As temperatures soar, AC units have to work even harder to maintain the same comfortable indoor temperatures. This leads to significantly higher energy usage even if you haven’t changed your AC settings. The intense demand for electricity during peak periods strains the energy grid, leading to higher costs for consumers as utilities are pressured to meet demand.

Read more about soaring temperatures this summer in another article, “Summer Heatwave: New York Under Extreme Weather Alert”.

Rising Electricity Prices: Electricity rates have been climbing steadily across the U.S., with some states seeing sharper increases than others. An S&P Global Commodity Insights article stated, “between 2018 and 2023, average U.S. household electricity prices rose 21.99%” (1).

Climate Change and Energy Demand: The refrigerants used in air conditioners are potent greenhouse gases, which contribute to global warming. This creates a cycle where higher temperatures lead to more AC usage, exacerbating the problem and driving up energy costs (2).

How Can Solar Help?

In the face of these challenges, solar power presents a viable solution for homeowners looking to reduce their energy costs and gain greater financial stability:

Cost Savings: Solar panels generate electricity directly from sunlight, reducing or even eliminating the need to rely on the grid. During the hottest days, when AC usage peaks, solar energy can offset these high costs, helping to keep bills manageable.

Energy Independence: By installing solar panels, homeowners can reduce their dependence on the grid, offering protection against rising electricity prices and power outages. This is particularly important as extreme weather events, like heat waves, become more frequent. In addition to solar, adding batteries to your system can allow you to store solar energy to use in case of an outage.

Environmental and Financial Benefits: Solar energy is a clean, renewable resource that doesn’t produce greenhouse gas emissions. By switching to solar, homeowners can reduce their carbon footprint while enjoying lower energy bills and greater financial freedom.

Now is a Great Time for Solar

With the current financial strain as a result of rising AC costs, now is the perfect time for solar power. When you go solar, you’re able to take greater control of energy usage, lower monthly bills, and protect yourself from future continued price hikes. As more people go solar, strain on the electric grid will decrease, helping to stabilize and lower overall electricity costs.

Solar isn’t just a solution for current high costs, it’s also a great investment in a sustainable, cost-effective future. Currently there is a big push, both in New York and the U.S. as a whole, towards a more sustainable future, and this means incentivizing clean energy. When you choose Kasselman, you are choosing a team dedicated to high quality and great customer experience that is unmatched in the area. Get in touch to learn more about how you can save on your bills with solar, and keep your AC cranking on high this summer!