BREAKING: 2022 New York State Solar Incentives Now Best In USA

Why is my electric bill so high?

Don’t worry, you’re not the only person whose electric bill is much higher these days. In fact, you’re far from alone. Continued volatility in the energy markets has caused a whirlwind of higher prices nationwide, but especially here in New York.  

Why is this happening?

With the costs of rent, gas, and utilities all rising at double-digit rates, households all over the country are forking over 2021’s pay increases just to make ends meet. After all, according to the US Energy Information Administration, the average homeowner saw their electricity bill rise 4.3% last year. This was the largest jump since the economic crisis of 2008 (3). Natural gas prices are also at their highest prices since 2008, likely caused by their limited inventories (5).  


So, what specifically is causing these higher energy prices? It’s a mix of the crisis in Ukraine, the aftermath of the pandemic, rising costs for natural gas, and inflation. Because most of the natural gas and oil suppliers are set in international markets, the Russian invasion of Ukraine has thrown a wrench into pricing. Similarly, due to COVID, many natural gas producers closed for good, along with a record-breaking number of people quitting their jobs (3).  


Next, prices for natural gas have become higher. New York was the sixth-largest natural gas consumer in the US in 2019, but has very few natural gas reserves, which means New York is consuming natural gas produced by other states (4). Lastly, we are seeing a lot of inflation in the economy, which affects all industries. Clearly, there are many factors contributing to why your electric bill has become so high. 

Will this end anytime soon?

We’d like to be optimistic and hope these prices decrease, but we’re not getting our hopes up. Prices will continue increasing this summer. For starters, a new plan approved by the Public Service Commission (PSC) details a 2% increase in the electricity rate from July 2022 to June 2023 and another 2.1% increase from July 2023 to June 2024 (2). 

 

In addition, government entities are experiencing much higher revenue from these increased costs that will likely be hard for them to give up. For example, the Central Hudson region of New York will see revenue increase by $8 million and $8.7 million in the second and third years of this new plan by the PSC (2). In addition, the cost of power during times of peak demand in New York has increased almost $100 per megawatt-hour from last year (1).  

What can you do about it?

As a result, increased prices will likely not be getting better in the next few years. A cost-effective solution and one that helps alleviate the climate change crisis is going solar, a sustainable way to power your home. In fact, New York has the best tax incentives in the nation for homeowners who choose solar for their power.  

 

Going solar is a wise investment in the environment and will also bring down your energy costs by a significant amount. Kasselman Solar is committed to having a positive impact on the planet, while also providing exceptional service to customers by helping them lower their bills. 

 

Want to go solar, but not sure where to start? Click here to learn more.

Schuyler Arnold

Schuyler is the Digital Automation and Marketing Strategist at Kasselman Solar. Hailing from Galway, NY, she joined Kasselman for the opportunity to better the lives of New York State residents. Possessing a BS in Management and MBA in Marketing from Siena College, she believes in developing content that is both relevant and engaging in today’s rapidly changing world.