The new year is finally here as we say hello to 2023. With the start of a new year, many people take some time to revise their budget or review their financial situation. Of course, it’s impossible to ignore the way that inflation has impacted prices all around us — from groceries, to clothing, to gas prices, and more.
All of this to say: the price of energy is rising. Everywhere you look, energy companies are raising prices. Whether it’s due to inflation, or something else, consumers are going to continue feeling the pinch. But solar panels could be the perfect solution to help you lock in your energy prices for good.
Keep reading to learn more about the causes of rising energy prices and more.
Evergy Raises Consumer Prices in Kansas Due to Increased Spending
Sometimes, it’s not even inflation that causes your electric bill to increase. Sometimes, it’s just because your energy provider “increased spending by $1.2 billion … more than 20% beyond the plan … presented last year.”
If this seems oddly specific, it’s because that’s exactly what is happening to energy customers in Kansas. KCWH 12 News in Wichita recently reported that, according to energy provider Evergy, Kansas residents can expect to see their electric bills increase over the next few years.
“Evergy said for those in central Kansas, rate projections when excluding fuel increases people’s bills 2.5 to 3% between 2022 and 2026.” — KCWH 12
Inflation’s Impact on Rising Costs
Regardless of what your energy provider may be doing — or not doing — inflation is also at least partly responsible for the rising energy prices. In the past year, we’ve seen leftover impacts from the pandemic, the war in Ukraine, and other global events that have impacted the supply chain all over the world.
Even during the summer, when you’d typically see a decrease in gas prices due to less demand for heating purposes, prices stayed high — all over the world. As much of Europe switched their natural gas supply away from Russia, more competition came into play. Which drove up demand from those producers, along with prices.
Add in the factor of climate change, which leads to an increase in extreme weather events, demand for energy will also continue to increase. This means we will likely continue to see rising energy prices across the globe.
How Solar Can Protect You From Rising Costs
Of course, while it can be difficult to predict how much rising energy prices will continue from year to year in the future, statistics can show us trends from the past. According to data by the U.S. Energy Information Administration, the costs of electricity increased by 30% between 2010 and 2020.
Over the course of 25 years, a typical couple — no kids at home, maybe retired — can expect to spend about $58,000 on electricity, assuming that 30% increase every 10 years. Larger or more families may need to expect spending even more.
But what if you chose to install solar panels instead?
While solar panels do have an upfront cost, it typically only takes 8-10 years to see a total return on your investment. In other words, that’s how long it takes until you’ve recovered the initial money you spent on your solar panel system.
From that point on — so another 15-17 years before you hit that 25-year period mentioned above — you’re only putting the would-be costs of your electric bill back in your pocket. (Plus, solar panels often last more than 25 years, anyway.)
And no matter what else is happening in the world, your electric bill is one area where you don’t need to worry about inflation.
Don’t Forget About the Inflation Reduction Act
In 2022, President Biden passed a bill known as H.R. 5376 – Inflation Reduction Act of 2022. The Inflation Reduction Act is designed to decrease consumer energy costs, increase energy security, and help reduce greenhouse gas emissions.
And for those who are looking to go solar, it even provides incentives to make it easier.
The Residential Clean Energy Credit will subtract 30% of the cost of installing solar heating, electricity generation, and other solar products from federal taxes. This means that, if you install solar equipment on your house, you are eligible to be compensated 30% of the total amount. Whether that’s $10,000 or $100,000, you will receive a nonrefundable credit to apply to your federal income taxes. This credit is available through 2023.
According to the Department of Energy, the following solar equipment will be covered by the new bill:
- Solar photovoltaic (PV) panels.
- PV cells used to power an attic fan (but not the fan itself).
- Contractor labor for onsite preparation, assembly, or original installation.
- Permitting fees, inspection costs, and developer fees.
- All equipment needed to get the solar system running, including wiring, inverters, and mounting equipment.
- Storage batteries. (You can claim the tax credit for these even if you buy and install them a year or more after you install the solar system.)
- Sales taxes on eligible expenses.
If you’re looking for even more ways to save money on solar as a Missouri or Kansas resident, learn more about solar incentives for residents of your state.
Save Money. Switch To Solar Today
If you are looking for the best solar company in Kansas City, look no further than KC Solar. We are here to discuss all your concerns about solar panel durability, severe Midwest weather, and more. We 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. We can also help you understand all your options, including the Evergy Solar Program.
KC Solar is the only local solar company in Kansas City with KC natives who own and operate the daily activities of the business. We are your Kansas City Solar Panel experts. And solar panel installation in Kansas City is our passion.
And be sure to download our Free Solar Panel Buying Guide for more information.