Here are 4 reasons why your utility bill could be high:

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1. Old appliances.

2. Peak hours.

3. High usage.

4. Inflation

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1. Old appliances.

Old appliances use more energy than newer appliances. Efficiency standards are much higher now than they were a decade ago. Old appliances in your home weren’t designed to be as efficient as the ones you can purchase today. Plus, all appliances become less efficient over time with wear and tear. In addition, older appliances weren’t made at the efficiency standards that are required today. ENERGYSTAR is a great resource for finding the most efficient appliances on the market today.

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2. Peak hours.

Some utility companies charge different prices for energy used at different times. For example, under the time-of-use rates,  running a load of laundry at 6pm is more expensive than doing that same load of laundry at 9pm. This is because electricity has a higher demand during certain times of the day. To lessen the load on the grid, utility companies reward you for using electricity at low-demand times instead.

3. High usage.

The more electricity you use, the more expensive your electricity becomes. Tiered energy rates are plans where the amount of electricity you typically use determines how much you pay per kilowatt hour. For example, a home in Utah that uses more than 1,000 kWh a month will pay 14.4 cents for each kilowatt-hour over their first 1,000 kWh compared to 8.8 cents per kilowatt-hour for their first 1,000 kWh.

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4. Inflation

Each year, the cost for electricity rises by about 4%. However, we have seen a larger increase in 2022 with an inflation rate of 8.91%. 

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“Prices for most types of energy commodities rose significantly in 2021, including the cost of power generation fuels, especially natural gas, which helped push electricity prices higher in 2021. The cost of natural gas delivered to U.S. power plants in 2021 averaged $4.98 per million British thermal units (MMBtu), more than double the $2.32/MMBtu average recorded in 2020.”

 -US Energy Information Administration

When you are dependent on electricity from the grid, you are subject to their ever-changing energy prices. Unfortunately, locking in a price for electricity with a contract from the utility company doesn’t make you immune to the fluctuation. When the cost of electricity increases for the utility company, they pass that price onto you in other fees. The only way to truly escape the fluctuation is to produce your own electricity.

One of the easiest ways to produce your own electricity is with a small-scale PV system. To help make it as simple as possible, we have created a step-by-step guideon how to invest in your own small-scale system.

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Ready to lower your utility bill? Talk to one of our experts today and see what Frugll can do for you.