What to expect with rising electricity prices
You’re probably expecting a rise in your heating expenditure as winter 2022–2023 approaches due to the lower temperatures. You should also be ready for higher heating and electricity bills due to the rising cost of natural gas (and other fossil fuels) worldwide. The National Oceanic and Atmospheric Administration (NOAA) predicts that this winter will be warmer and drier than usual, with above-average temperatures expected across most of the U.S. We’ll discuss why energy prices are rising, where they’re rising most sharply, and how you may safeguard yourself against the erratic nature of fossil fuel energy sources in this post.
What factors influence natural gas prices?
Knowing what determines the average price of natural gas boils down to supply and demand. Natural gas prices will fall when supply exceeds demand, but prices will rise when demand approaches or exceeds supply. According to the EIA (Energy Information Administration), the natural gas supply is primarily determined by a few factors.
Natural gas prices increasing
Spot prices of natural gas reflect the current price being bought and sold on the market. Retail rates change a few times yearly, depending on where you live.
Economic growth is another important aspect currently at work; as more firms expand, customers resume more regular activity following the closures that occurred at the beginning of the pandemic.
Is natural gas more volatile in the U.S. compared to other countries?
We produce more natural gas than any other country in the world. This means we can supply all of the gas we need from our resources. European countries saw soaring natural gas prices last year due to their dependence on Russia.
What effect will this have on your heating bill?
According to the EIA, about 48% of American households will use natural gas as their primary heating source in the winter. Your region will affect how much you pay, with the Midwest experiencing the most significant price rises. The EIA estimates that households who use natural gas may expect to pay roughly 28 percent more for gas this winter.
Are the prices for other heating sources increasing as well?
If you rely on oil as your primary heating source, your bill will likely increase by 27 percent. Your bill will also increase by about 10 percent if you use electricity for heating. If it ends up warmer and you need less heat, you might not see dramatic increases.
How will this affect the cost of electricity?
As the temperature drops until the winter season ends and the demand for natural gases used for heating increases, electricity prices also increase. The electricity prices vary depending on where you live and how much energy you use. If you generate and consume renewable energy at home, you may be better protected from increasing electricity rates.
How can rising natural gas prices be avoided at home?
You can take steps to improve your home’s energy efficiency and reduce the impact of rising fossil fuel prices. You can also electrify your home, which makes you less vulnerable to volatile fossil fuel price swings. Below are alternatives:
Air heat pumps
Most heating systems, like natural gas furnaces, change your home’s temperature by creating hot air that circulates throughout it. Air source heat pumps operate differently and more efficiently than traditional heating systems. A heat exchanger uses the difference in temperature between inside and outside to transport heat from one area to another.
Solar Panel System
Going solar can save the typical home tens of thousands in electricity costs over 20 years. Unlike natural gas, a finite fossil fuel, solar energy is renewable, meaning there is an endless supply and no need to worry about supply and demand. To lessen your energy consumption, you can also opt for electric space heaters rather than gas heaters to heat the house. Electric space heaters are more efficient when you heat up a room you will use for a short period.
Energy Storage
Energy storage will be a great way to significantly lessen your reliance on the grid and fossil fuels like natural gas. They provide extra energy for usage at night or whenever the power from the grid is down. It makes sense to add home battery storage if you live where net metering, time-of-use rates, and demand charges exist. You can also take advantage of the 30% off incentive with the extended federal solar tax when installing solar with batteries.
What can you do to protect yourself from energy volatility?
Making the grid cleaner and electrifying as much as possible – including transportation – will translate to lower energy costs for you and your neighbors. Here are a few things you can do to save energy and protect yourself from volatility:
- Insulate your attics: An insulated ceiling can make a big difference to your energy bills with up to 20% less on cooling and heating costs.
- Manage your heating and cooling: Whenever the temperatures rise or drop, your HVAC uses the most energy in your household.
- Switch to energy-efficient appliances: Replace old devices in your home or those near the energy of their lives with new models designed to be energy efficient. Be wise in choosing and using your appliances to lower your consumption. Ovens can be replaced with other cooking appliances like air fryers or microwaves that uses less energy.
- Use an energy meter or power monitor: You will save more if you can track your energy consumption. You can install an energy management system like Ecobee Thermostat Pro or Emporia Energy monitoring to help manage heating and cooling costs.
- Go solar: Using solar electricity you generate can significantly reduce the amount of energy you buy from the grid. Solar hot water systems can avoid gas charges when using a gas-fired water heater, the same as using heating or cooling systems. But read the ugly truths about installing solar before investing in one.
Get started on electrifying your home with DroneQuote
Consider going solar if you want to protect your home from the increasing natural gas prices! You’ll get a number of personalized quotes when you sign up for free at DroneQuote.net. By comparing these quotes, you can look for a system that satisfies your needs at an affordable price. As a fiduciary, DroneQuote will operate in your best interests. Let us assist you in reducing your utility costs while producing renewable energy at home.