Energy Information Administration (EIA) statistics show a consistent 2.5% increase in electricity prices for the past decade. Last year in 2022, the rising electricity rates in the U.S. accounts for almost 7.5%, making the year the most difficult one for ratepayers. The rising electricity rates in 11 states were about 20% more than they were in August 2021.
Moreover, these rising electricity rates depict the impotent nature of the ratepayers over the inflated utility energy prices. By acquiring solar energy as a means to power their households, people are gaining control over their electricity production and bill predictability.
Based on EIA data, the three states that are most impacted by the rising electricity rates are California, Maine, and Massachusetts. In California, the price of electricity was $0.15 per kWh in 2012. Now the cost is $0.27 per kWh, a total of 78% increase in price that took place in less than a decade. At this ratio of rising electricity rates, California’s electricity prices can be up to $0.33 per kWh in the future. Massachusetts residents are paying the highest electricity rate in the U.S., which currently stands at $0.342 per kWh.
Solar Energy is Gaining Traction in the Rising Electricity Rates Arena:
A major influx towards solar energy can be seen as more people are seeking independence from the soaring utility electricity prices. Californian citizens are topping that list with 39.3% of residential solar energy production in the U.S. In 2020, the implemented law made it mandatory for each three-story building in California to have its solar system. This elevated the percentage of rooftop solar installations in the states. New York comes second in residential power production with 6.1%. And Arizona takes the third slot with 5.9% in the U.S.
However, in terms of potential solar savings the state that tops the list is Michigan. With the rising electricity rates, the potential year-one savings in Michigan is $2,230. The average monthly bill in Michigan accounts for about $109.86.
In the same way, the average year-one savings for Hawaii and Connecticut are $1,623 and $1,433 respectively. The monthly electric bills account for about $162.66 in Hawaii and $161.55 in Connecticut. Moreover, despite this year-one savings, the solar systems will help to get rid of the uncertain utility electricity prices.
Consequently, solar system installation will also increase your property value. The Rocket Mortgage estimation showcases that house with solar PV modules, sells 24.7% times faster in the U.S. Market. According to Zillow’s data, panels can add around 4.1% value to your home. For instance, the worth of a home in New York is about $408,833 and after solar installation, it becomes almost $425,595.