The Imminent Price Hike: Factors That Affect the Cost of Electricity

The Imminent Price Hike: Factors That Affect the Cost of Electricity

Being a homeowner is one of the most challenging jobs on the planet. Keeping your home in good shape and finding ways to minimize monthly utility costs is challenging. The monthly energy bill is something many homeowners have learned to dread. As the heat outside rises, more and more electricity will be consumed by homes all over America. On average, a home consumes around 915 kWh of electricity a month.

The overall cost of your monthly electricity bill will be determined by the agreed upon cost of producing the power. This sudden price hikes that are common in the world of electricity are too much for some homeowners to handle. This is why there has been a noticeable shift in the American consumer’s attitude towards solar energy. Read below for a list of factors that can affect the cost of electricity for homeowners.

Bad Weather Can Drive Up the Cost of Electricity Production

There are many nuclear and fossil-fuel powered plants all over the US who produce electricity. The location of the plant that produces the electricity in your area dictates how much you will pay. During hurricane season, many coastal areas in America are bombarded with storms of all shapes and sizes.

In some cases, the plants that generate power in an area experiencing bad weather may be knocked offline for a while. This means their overall production level will decline substantially. In an attempt to recoup some of their losses, these energy plants will raise the rates they charge homeowners.

If you are tired of dealing with the rising cost of traditional electricity, it may be time to consider the benefits of using solar panels. With the help of experienced professionals, like the ones at Solar Masters, getting new residential solar panels in place will be simple.

Handing Down Operating Costs to the Consumer

Building, staffing and maintaining a traditional power plant is extremely expensive. The companies that own these establishments are always looking for ways to maximize profits. In an attempt to reduce the costs associated with running a power plant, many corporations routinely hike up the rates they charge customers.

Generally, these price hikes are low, but they do add up over time. If you keep track of these hikes, you will notice a significant increase throughout the year. Making a one-time investment in a solar panel system for your home is imperative when trying to reduce your dependency on traditional energy. The money you pay for this system will be worth it considering the long-term savings it will provide.

Residential Customers Tend to Pay More Than Businesses

Some homeowners think that businesses pay more for the electricity they consume. In reality, this is not true. Many electricity companies charge homeowners more than industrial accounts. This cost reduction is due to the fact that large businesses consume far more energy consistently. The cost of generating and delivering these large chunks of electricity is usually cheaper for the power plant.

It’s Time to Embrace Solar Power!

As you can see, a number of factors can increase the cost of your monthly electricity bill. Contact Solar Masters to find out more about the renewable energy solutions we offer.

Paul Chandler