Inflation is affecting more than just the price at the pump and the grocery store aisles. Inflation is also affecting energy costs. There is a wide range of data sets from a number of different sources means you can get different numbers depending on which factors you specifically include or exclude. However, they all point to the same thing:
Energy prices are increasing.
Energy prices have surged more than 34% year over year. As of this past May, inflation in the U.S. reached 8.6%. Energy alone has added 2% to that inflation number due to their rising costs. While the term ‘energy’ captures a wide range of sources, let’s take a closer look at the energy source people are using the most during these hot summer months – electricity. Electricity rates alone have increased 9%. The prices were even higher in areas where electricity is primarily generated from natural gas.
We’ll look at what this means for you and different ways that you can save money on your energy bills.
What is Causing Rising Energy Costs?
There is a wide variety of factors that are causing price hikes in energy costs. These range from leftover effects of the pandemic, to the invasion of Ukraine. Both of those events have had massive effects on the global supply chain.
Typically gas prices dip with the demand over the summer as people are not using it to heat their homes. However, the Russian invasion of Ukraine is causing massive disruptions in the world energy markets. These effects are not limited to the U.S. either, as most of Europe switches their natural gas supply away from Russia. This means more competition for energy from other producers, driving up demand from those producers, along with prices.
Combine these factors with the progression of climate change causing more extreme weather events. These types of events often lead to higher demand, and will likely drive energy prices even higher.
Short Term Solutions To Save Money
What options are available to you to ease some of the squeeze? One of the fastest and easiest things you can do is try to limit your energy consumption. On the cheaper end of the budget, this can be accomplished by switching to LED lights or installing a smart thermostat.
As with many energy saving tips, LED lights are typically a more expensive investment up front. However, once installed they cut the amount of energy used by up to 85%. This means you will save on energy costs. That is the goal with the smart thermostat as well. It can help you cut energy costs for heating and cooling, which are oftentimes one of the most expensive monthly bills. If you have a little bit of savings, ensuring your other appliances are energy efficient is also a great option.
Another option is to do an energy audit of your home. This reviews a home’s energy performance looking at the features listed above, as well as the household’s energy consumption patterns. Missouri’s Department of Natural Resources offers an interactive map to find an energy auditor near you.
Long Term Energy Price Solutions
All of the above energy-saving techniques, as great as they are, only solve one part of the problem. The other part of the problem is energy prices are predicted to continue rising. While electric prices typically dip in the winter as air conditioning is used less, this year is likely going to be different thanks to energy constraints caused by Russia’s invasion of Ukraine.
This means finding a long-term solution, as energy costs are predicted to continue rising. There is a way to lock in your electric rates, but similar to other energy saving techniques requires a bit more upfront investment. Solar panel installation in Kansas City is as cheap as it’s ever been. Many solar companies have 25 year warranties on solar panels. This means over the lifetime of typical residential solar panels in Kansas City, most people can expect to save between $10,000 to $30,000. You not only get to save money, but you would also actively helping reduce your carbon footprint and helping the environment.
Maybe the upfront investment is a bit too much. Maybe you live in an apartment and don’t have your own roof to install solar panels on. There are ways you can still lock in your energy rates for the next 20 years. If you are in the Kansas City area, the Evergy Solar Program is one way you accomplish this. As with any change, it is worth weighing the pros and cons of making the switch.
Start Your Switch To Solar Today
If you are looking for the best solar company in Kansas City, look no further than KC Solar. They are your local Kansas City solar panel installation experts. Once you schedule a no-pressure site visit, our experts will help you understand what solar system specifications would be best for your home or business.
KC Solar is the only local solar company in Kansas City with KC natives who own and operate the daily activities of the business. What does that mean for you? We care about you because we care about this city, and we only want the best for it.
And be sure to download our Free Solar Panel Buying Guide for more information.
We look forward to serving you!