American households could be hit with the highest energy bills in over a decade this summer, according to a new analysis.

What's happening?

The National Energy Assistance Directors Association released its energy outlook for the summer months. With above-average temperatures and rising energy costs, the organization predicts a significant increase in utility bills nationwide, the highest levels in over 12 years. 

According to the National Oceanic and Atmospheric Administration, summer 2025 is expected to be less extreme than 2024's record-breaking heat but will still be above average. Colorado, Utah, and Wyoming are projected to bear the brunt of heat waves in the West, while New England is also expected to be hotter than usual. 

"Families should start preparing for long-term extreme weather and think about the energy efficiency of their cooling systems," Mark Wolfe, executive director of NEADA, told CBS News.

Why are high energy costs such a concern?

Extreme heat causes around 1,300 deaths yearly in the U.S., per the Environmental Protection Agency, but half of all states do not offer any assistance for cooling costs. The pollution from dirty energy sources is causing extreme weather events to increase in frequency and severity. Heat waves are lasting longer and becoming more intense worldwide. 

It's a vicious cycle, as the energy needed to combat extreme heat also contributes to the problem. Air conditioning accounts for approximately 4% of harmful pollution, a figure that could increase significantly by the mid-21st century. 

What's being done about high energy prices?

Several practical steps can be taken to mitigate the problem, such as reducing energy use. Many households have so-called energy vampires, devices that are seldom used but always draw energy. Simply switching off unused appliances each night can save around $165 on average in utility bills.

The ultimate step to lower energy costs and reduce reliance on planet-heating energy sources is to install solar panels. Unlike other energy sources, the price of solar panels has plummeted by 90% in the last decade, according to Our World in Data. As more of the world adopts solar power, that price will fall further. 

Of course, as cheap as solar energy is, the upfront cost is one of the biggest barriers for many households interested in installing solar panels. Fortunately, there are options for avoiding those initial expenses. Leasing through Palmetto's LightReach program can help avoid those high upfront costs. For some households, buying outright may be the better option, and EnergySage provides valuable online tools to help you get the best deal.

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