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New report reveals the culprit behind a $4.3 billion increase in home energy costs: 'As a final twist of the knife … residents will be on the hook'

There are steps that homeowners can take.

Growing data center's power demand caused ratepayer's utility bills to jump $4.3 billion last year.

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The more we search, prompt, and scroll, the more it costs. 

That's according to Politico's E&E News, which reported that growing data center power demand caused ratepayer utility bills to jump $4.3 billion last year. 

It's a scenario that showcases the importance of cleaner solar energy, noted by Reuters to be one of the cheapest and fastest power sources to develop. When deployed on rooftops, it gives homeowners control over their electricity supply. 

What is driving the electricity demand?

E&E's story spotlighted PJM Interconnection, the outfit that coordinates electricity movement in a roughly square-shaped territory from western-most Ohio to the East Coast, and from the Pennsylvania/New York border to southern Virginia. Washington, DC, and Northern Virginia's "Data Center Alley" are included, according to PJM. 


The story said that massive energy needs are mostly attributed to data centers, where powerful computers are fulfilling our search inquiries and artificial intelligence work orders, per the report. 

"By 2028, an average family in the region will be paying around $70 a month extra on their electricity bills because of forecasted data center growth," the Natural Resources Defense Council estimated

Leasing solar panels through Palmetto's LightReach can protect homeowners from spiking monthly power bills. The program bypasses upfront costs associated with buying an array. Homeowners pay a set monthly fee and use all of the electricity generated, helping to offset price hikes. Palmetto is responsible for setup, installation, and eventual panel removal.  

Why is the demand important?

Runaway computer power use is well-documented. Goldman Sachs said that data center-related energy requirements are forecast to rise 165% by 2030. As a result, NPR reported that electricity rate spikes are outpacing inflation.

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E&E's story noted that leaders consider AI development an international race that the United States needs to win, incentivizing even more computing. In response, tech giants are in some cases building their own power plants using dirty fuels to power the operations, according to the Texas Tribune. 

Microsoft is reopening a portion of Pennsylvania's Three Mile Island nuclear site in one of the more unusual scenarios. And Meta has invested in cleaner solar to help offset its electricity use. It's an energy source free of heat-trapping air pollution. That's important because NASA linked our planet's warming to increased risks for severe storms that further complicate the power supply with line-downing weather events. 

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E&E cited forecasts that have projected rate increases in PJM's territory to hit $163 billion through 2033. Price caps, such as one negotiated in Pennsylvania, limit some immediate impact. But once the cap is lifted, the rates soar, per the story. 

NRDC said the process is based too greatly on speculation, and there is some fear that demand estimates could be too high. Regardless, ratepayers will suffer unless the system is refined. 

"As a final twist of the knife, PJM residents will be on the hook for skyrocketing prices, even if these data centers don't get built," NRDC reported. 

How can solar help? 

Home solar removes some of the variables associated with the grid supply since the electricity is generated and used onsite. Battery backups, such as a Tesla Powerwall, save the electricity for later use. 

Buying a rooftop array can reduce or eliminate household utility bills if leasing isn't right for you. EnergySage can help overcome upfront costs with quote comparisons, finding the right installer, and securing tax rebates before they expire on Dec. 31. 
Palmetto has a guide that provides valuable insight about both leasing and buying, so you can make the right choice for your home.

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