Energy experts shine a light on the true culprit behind soaring prices: 'The utilities get away with it'

It's not your imagination — your electric bill really has gotten that bad. And if it's hitting your wallet harder than it used to, you're definitely not alone. 

Nearly 80 million people in the United States are struggling to keep up, according to a PowerLines report cited by EnergySage. 

In April, the average price of electricity hit 18 cents per kilowatt-hour. That's 35% higher than it was just five years ago. Higher than inflation. Higher than most people can afford.

What's happening?

Utility companies have been greenlit for nearly $20 billion in rate hikes this year alone, EnergySage observed. That's not a typo. 

These companies say they need the cash to update old infrastructure. But the truth? A big chunk of the price hikes is coming from the delivery part of your bill, not the actual electricity.

"Distribution used to be 20%. Today it's 50% of your bill," energy expert Jigar Shah said in a video interview with EnergySage. 

That means you're not paying more to use power — you're paying more just to receive it.

Why is this concerning?

Here's where it gets messier. Some utilities have started pointing the finger at homes that use solar panels. Their claim? These folks are driving up rates for everyone else. 

It's called the "solar cost shift." But studies show this argument doesn't hold up. Researchers at Brookings, Solar United Neighbors, and others found little to no evidence of this shift, EnergySage noted. In fact, Californians saved $1.5 billion in 2024 alone thanks to rooftop solar.

Brad Heavner from the California Solar and Storage Association isn't having it. "The utilities get away with it. They're laughing year after year," he said.

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His team reviewed decades of spending and found that utilities aren't just hiking prices. They're overspending and shifting the blame.

What can I do to reduce energy bills? 

Installing rooftop solar panels is still one of the best ways to protect yourself from rising rates — and shrink pollution in the process. 

EnergySage offers free tools to help you estimate your savings and compare quotes. It's fast, it's easy, and it can show you what solar could look like for your home.

There's more: EnergySage estimates that most people can save up to $10,000 by using its free service and accessing incentives. But those incentives may not last. Congress is considering cutting the federal solar tax credit. You may need to act before the end of the year to qualify.To make things easier, EnergySage has a tool that shows average solar prices and incentives by state. The sooner you get started, the more you can save.

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