It’s no secret that inflation has been wreaking havoc on the economy lately, creating a glaring problem for people around the world. After all, in the US, inflation is at its highest level in 40 years (1). Americans are feeling higher prices in just about every aspect of life, from food and clothes to gas and electricity. As the winter months are fast approaching, the problem of higher prices is only growing.
Energy Prices Are Already Increasing
Since April 2020, the average price of gas has doubled to $3.48 per gallon. The price of electricity also rose 10% in the same time frame. The increase in electricity prices is due to price increases of natural gas (1). In fact, about 40% of electrical power in the US is generated through natural gas.
With the rising costs due to inflation, costs will get higher when winter begins because of the higher demand for heat. Natural gas prices rose by 2.9% in September alone, and September isn’t even a winter month (2). If the prices increased 2.9% during a fall month, we can only imagine how much higher it will be in the winter.
On that note, while prices are increasing because of inflation, decreasing supply may also become a factor that increases prices. In the first week of October, the Organization of Petroleum Exporting Countries announced it would cut production by 2 million barrels of oil a day (2). On top of that, the overall energy index is still up almost 20% over the last year. With less supply and more demand, we can safely predict that prices will increase as a result.
Clearly, people have been subjected to higher prices for a while now, but it shows no signs of stopping in the near future. Especially when prices are determined on the macro scale, there is very little that individuals can do to alleviate the burden of these record-high prices.
Solar Is A Solution
To have the lowest electric bills in your neighborhood, the most practical solution is to switch to solar energy. By using the Sun to power your home, you stop relying on the grid, natural gas, and global supply chains, all of which are contributing to the increased prices and inflation in America. This winter, according to the National Energy Assistance Directors’ Association, those who use propane gas to heat their homes will likely pay a whopping average of 57.8% more compared to 2020. In addition, natural gas could go up 66.1% and fuel oil could jump 74.5% (3).
Switching to solar eliminates your need for costly energy sources, such as propane, natural gas, and oil. Take back control of your electric bill and enjoy inexpensive bills by switching to solar today.