Inflation may be slowing down these days, but the prices of gas, food, clothes, electronics, and utilities are still up compared to previous years. As consumers, everyone is forced to adjust to make sure that everything is covered by the end of each month. With electricity being one of the major utilities impacting household budgets, many are wondering, will electricity prices go down?
One of the first things that people act on is their electric bill.
In a study conducted by the U.S. Census Bureau Household Pulse Survey from July 27 to August 08, 2022, about a third, or 33.9% of U.S. households said that they had to skip spending on food
or money just to make sure that they were able to pay their energy bill. Texas has the highest rate of households that had to skip on paying their energy bill at 44.8%.
It also discovered that 23.1% of U.S. households reported being unable to pay a part of their energy bill in the past year.
Will electricity prices go down?
This is a question that many consumers are asking to ease up the pressure on their wallets. But this is highly unlikely even if price hikes continue to slow down and the price of wholesale power is also going down.
This is because most of the U.S. electricity is produced using natural gas these days. And, currently, there’s a general decline in prices from electric power producers that uses natural gases. But consumers won’t be able to benefit from that decline.
Electric prices vary depending on one’s state. But on average a typical U.S. household spends about $117.46 per month, according to research conducted by Move.org this year.
Experts expect the electric bill to continue to rise as operating costs continue to increase and the key fuel (liquified natural gas) in creating electricity is still in short supply due to the ongoing war between Ukraine and Russia. This is because the United States is supplying natural gas to European countries, which stopped buying gas from Russia in response to the unprovoked war.
He also shared other factors that may contribute to continued high electricity bills. They are:
- China’s economic is reopening and being the largest importer and the U.S. has an unprecedented level of export.
- Labor shortages and tighter supplies
What can you do to save or lower your electricity bill?
As consumers, we may not have control over the fine intricacies of generating electricity and its costs. But there are a few things that we can take into our own hands to make sure that we can lessen our electric bills:
- Audit your home energy usage
This can be achieved in different ways. You may do it yourself and see how much electricity the household consumes in a month. You may also check in with your local electric company to see if they can help you take a look around your home and give pointers on saving energy bills.
- Make sure to unplug appliances
Coffee makers, computers, laptops, speakers, and TVs are some of the appliances that are left on standby mode. They still draw up power. The same thing happens when a cellphone charger is left plugged into the wall. This is called vampire power or phantom load.
At least 23% of an electric bill by a U.S. Household happens while they are on standby mode. This is about $165 per household on average.
So, make sure to unplug all of your appliances and devices when not in use and when you’re not at home for your wallet’s protection and fire safety.
- Utilize solar energy
Gone are the days when using renewable energy cost a lot of money and isn’t accessible to the public. So, why not try and generate your own electricity at your home through solar energy?
Install solar panels at your home. This allows you to be more self-sufficient and less reliant on your local electric grid.
There are a lot of available home solar energy solutions that you can choose from. An example is Nature’s Generators which can cover just about any needs a U.S. household may require. They can cover 1800 watts to 3600 watts of energy needed, perfect for any household size.
This form of renewable energy can help reduce monthly electric bills. And, in some cases, eliminate them. Not to mention the fact that they are a great form of home power backup during emergencies. No need to worry about any form of discomfort during power cuts.
You may back up your solar panels by having wind turbines to supplement your power needs.
Also, you or any U.S. household owner may apply for a tax refund of up to 30%. Here’s how.
- Have Energy-Efficient Appliances
A big chunk of household electricity comes from appliances such as water heaters, dishwashers, refrigerators, washing machines, and air conditioners.
Older models of these appliances are not as energy efficient as their current designs. They can also be harmful to the environment as some add up to greenhouse emissions and one’s carbon footprint.
Energy-efficient home appliances are created to be efficient without having to use high energy.
To help you determine what appliances or brands to look at, check if it has an energy star.
It is a program backed by the U.S. Environmental Protection Agency. It meant that any product that has an energy star symbol meant that they deliver cost-saving energy efficiency. For more details on this, you may visit this website.
For example, a washing machine that is Energy-star rated can save up to 25% on energy consumption per load compared to its traditional counterpart.
- Smart Home Power Solutions
Technology has come a long way. Many of our household gadgets require electricity to use them. But they can also and still help reduce wasted energy and money.
Through your smartphone, you can set up a home ecosystem that is energy-saving. Here are some ways this can be achieved:
- Smart Lighting – there are now available smart bulbs that can be programmed to have a scheduled on and off time. They can also be motion sensors so they would only turn on when there’s a person in the room. Take note that all smart bulbs are LED bulbs. It meant that they require less energy and can last longer than incandescent.
- Smart Thermostat – According to US Energy Information Administration about 12% of U.S. household electricity bill comes from air conditioning and fans which cost about $525/year in hot-humid regions.
Having a smart thermostat at home can help with a home’s heating and cooling based on the household’s schedule. Thus, decreasing any energy spent when no one is there to appreciate the coolness of a room during summer or the heat during winter.
Final Thoughts
Traditional electricity prices are likely not going to decline in the following weeks to come, as they are influenced by various factors beyond one’s control. However, there are simple steps that can be taken to lessen unnecessary electric bills, such as unplugging appliances when not in use or using energy-efficient devices. For those willing to invest more upfront, solutions like solar energy or renewable energy sources can significantly reduce long-term electricity costs. While these solutions may take time to show returns, they are all worth it in the end. As for the question of will electricity prices go down, it's uncertain, but implementing energy-saving strategies can help mitigate the financial strain caused by rising utility costs.
If you need any assistance to start your solar power journey just reach out to us and we’ll answer them.
* We want to give credit where credit is due. Professional writer, Cris Ilao, contributed research and content to this blog titled: Will Electricity Prices Go Down Thank you, Cris, for your contributions!
