Electricity Price Increases Are Coming To New England Homeowners This Summer

Unfortunately across New England, homeowners can expect more electricity price increases this summer as announced by WCVB. From June to August 2022, energy costs will be rising and this will be seen in residential electricity bills every month.

The estimation is that energy price increases will lead to an 11% rise from the average electricity bill homeowners paid in the summer of 2021. With sky-high prices at grocery stores and the gas pump, this is another unfortunate side effect of the inflation we have seen over the past few months.

According to the U.S. Energy Information Administration, electricity prices in the Northeast regions, including New England, will exceed $100 per megawatt-hour which is a large increase from the $50 per megawatt hour prices in the region last summer. This would make the average residential electricity bill about $165 per month in June, July, and August.

The recent electricity price increase is due to the reliance of natural gas and the historical rise in the price over the last few months. According to Chris McKinnon of Eversource, the electricity price increase happening because, “We don’t actually generate any power here. We deliver it. And so, we’re seeing those commodity prices, the price of natural gas going up because of some of those geopolitical issues that are going on.”

This is a common theme as the EIA also said in its latest Short-Term Energy Outlook, “Various factors determine wholesale electricity prices, but the cost of fuel for fossil-fuel generators is an important driver. Wholesale prices are especially tied to natural gas prices because natural gas-fired units are often the most expensive (marginal) generators dispatched to supply power.”

In the past to offset rising energy costs, natural gas has been replaced with coal-fired energy when natural gas prices have gone up. However, coal power plants are not producing as much considering coal capacity retirements, constraints in fuel delivery to coal plants and lower-than-average stocks at coal plants, the EIA said. This is especially true in Southcoast, MA where Brayton Point Power Station the largest coal-burning plant in the state closed in 2017.

This is leading homeowners to ask:

How Can I Stop Paying Rising Energy Costs? 

Isaksen Solar has the answer. With the rising electricity prices, we are seeing many homeowners believe they are a prisoner to the times and must continue to pay while hoping for prices to decrease. That is until they have a conversation about solar and they see their options. Through solar homeowners create their own solutions by producing their own energy.

Homeowners powering their home with solar are experiencing immediate monthly savings, a lifetime positive return on their investment and may even have their utility company pay them instead of paying their power company more every year for the same service.

Residential solar installations will continue to help New England residents balance their reliance on natural gas, reduce carbon emissions and give residents freedom from the constant price increases.

If you have questions about how solar can save you money and reduce your carbon footprint, call Isaksen Solar at 508-567-0647 or start your free quote online today!