Many New Yorkers are facing higher electric bills as the state struggles to upgrade the grid to keep up with rising demand and clean energy mandates.

What's happening?

According to the Times Union, some residents are seeing bills hundreds of dollars above average. Patrick Stella, a representative for the energy company National Grid, which serves customers in New York, blames soaring costs on more frequent heatwaves and cold snaps over the past year.

However, even without erratic weather, residents will still pay about $22 more per month, on average, for their electric bills because of rate hikes, which the energy company says are necessary because of inflation, increasing demand, and regulatory burdens that make clean energy projects more difficult to approve.

While New York has set regulations to fully decarbonize its electric grid by 2040, it's currently an uphill battle because of lengthy permitting processes, which encourage developers to "seek higher rates" to offset costs. Much of these costs are being passed onto ratepayers, and even though the price increases are in some ways justified to pay for new transmission lines and electrifying the grid, some residents' bills seem obscenely high.

"As a small business operator in Albany, NY, we have an electric bill from National Grid that could possibly not get paid this month," the owners of a New York restaurant posted on their Facebook, according to the Times Union.

"We used less kWh (than) last year and our bill will be almost ($)600 more," the post continued. 

Why are rising utility rates concerning?

As the restaurant owner explained, some of the rate hikes seem outrageously high, all things considered. While there may be other factors at play, even a small increase could make it harder for families to afford other necessities.

The Times Union reported that National Grid "offers time of use rates," which reduce electricity costs when customers use energy at non-peak hours. However, it may need to explore other ways to help residents who struggle to keep up with their bills.

The state operates two separate grids — an electric transmission system for power and another natural gas grid for heat — but environmental advocates say streamlining the grid will make it more efficient and help reduce costs. 

"Unlocking transmission would make a big difference," Dharik Mallapragada, an energy systems researcher at New York University, told the publication.

Do you think you're overpaying for electricity? Yes 👍 No 👎 Only in certain months 🤷 I'm not sure 🤔 Click your choice to see results and speak your mind.

Even though switching to an all-electric grid would lower residents' energy costs and greatly benefit the environment, it will take time, substantial investments, and likely regulatory changes before rates can be significantly lowered. In the meantime, rooftop solar panels are one of the best ways for homeowners to save on electricity while reducing pollution.

How can solar panels help reduce energy bills?

Because solar panels harvest electricity from the sun to power your home, they lower the amount you need to purchase from a utility.

However, investing in a home system isn't in everyone's budget, and that's where Palmetto comes in with its LightReach program, a solar leasing option that gives homeowners and renters access to clean, affordable energy without massive upfront costs (some plans even offer $0 down).

If you'd rather buy a system outright, EnergySage can help you get started with its free tools, which allow you to compare quotes from vetted installers and find the right system for your needs. Not sure if leasing or owning is the best option? Palmetto has a pros and cons list that can help you make the right decision for your home and budget.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.