New York homeowners are in for a rude awakening for both their electricity and winter heating bill this year.
- New York homeowners should expect to see their utility bills rise to up 50% this winter.
- New York still generates 2/3 of its electrical supply via natural gas-fired power plants.
- Making the one time investment into solar secures a homeowners energy independence from the ongoing global effects causing price fluctuations.
- With the global economy still reeling from the ongoing effects of COVID-19, oil and gas companies are struggling to ramp their production to match demand.
New York Electricity Prices Increasing
If you are a homeowner in New York State, then you’ve been experiencing increasing prices for your utility bills. Both local and national news networks have called attention to increasing natural gas prices, but they fail to mention what is to come next as well, rising electricity rates.
Natural gas prices are expected to increase 30%1 – 50%2 from last year (2020) amidst increasing commodity prices. While New York State is actively taking steps to incorporate more renewable energy sources to offset it’s reliance on fossil fuel generated electricity; New York still generates 2/3 of its electrical supply3 via natural gas-fired power plants, meaning that any price increase in natural gas directly reflects on electrical bills as well as your gas bill.
Rising commodity prices and inflation have hit the energy industry hard. While authorities are confident on having enough electrical supply4 to avoid blackouts, there is little they can do to combat the rising prices.
In the case of blackouts, generator owners should expect even higher costs with propane prices estimated to rise 54%.5
Solar As The Solution
Our most recent article on Solar Batteries vs. Generators tackles why we advise against generators for home back-up (fuel costs being a large downside) and instead encourage homeowners to go with a solar battery.
Making the investment into solar with battery backup is no longer just an environmental decision for people focused on decreasing their carbon footprint (although that certainly is still a factor). This investment is now about New York homeowners taking back control from utilities and the countless variables that comes with relying on them for their power.
Making the one time investment into solar secures a homeowners energy independence from the ongoing global effects causing price fluctuations.
Prices are cents per Kilowatt-hour (¢/kWh). Data for graph provided by NYSERDA6 & U.S. Energy Information Administration.7
*Data past July ’21 not available*
What's Causing Price Increases?
With the global economy still reeling from the ongoing effects of COVID-19, oil and gas companies are struggling to ramp their production to match demand. Thankfully the US natural gas supply is not as volatile as the rest of the world, considering a conservative price increase of 30% in the US compared to a 350% increase in sections of Europe.8
Europe, which historically relied on Russia to supply large amounts of its natural gas has had its supply reduced, causing European energy companies to go into bidding wars9 over containers of liquid natural gas.
In the stock market, natural gas futures have settled at the highest level seen since December of 2008, and barrels of oil have past $80 a barrel for the first time in 7 years.10 Across the board fossil fuel based energy sources are skyrocketing in price and show no signs of slowing down as we move into the winter.
Is this the end of life as we know it? Of course not, the world has seen plenty of shortages of energy sources before. Our older readers could consider this a walk in the park compared to the 1970’s oil crisis, in which OAPEC embargoed oil to the U.S. and several of its allies.
This is however a clear mark of a trend, in which external global factors directly impact the lives of average people who previously had no answer to problems generated outside their control. No longer! Homeowners now have the ability to take back control by investing in their own energy independence through solar while simultaneously doing right for the environment.
Take back control of your utility costs now and go solar today!
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