Energy costs in California have skyrocketed in recent years, nearly doubling in price.
What's happening?
According to EnergySage, a source of objective, independent expertise in the solar power industry, the price of energy in California has grown by 96% over the last decade, and the cause of that surge may not be unique to the state.
In many states, the rise in the price of energy was fairly consistent with inflation. But according to economists Jenya Kahn-Lang and Jesse Buchsbaum of Resources for the Future, even after adjusting for inflation, costs in California rose by more than 20% from 2021 to 2024.
These rate hikes are due to expensive utility infrastructure upgrades meant to address problems with old equipment and worsening extreme weather events, especially wildfires.
"They're a result of dealing with climate change," Severin Borenstein, professor at the University of California, Berkeley Haas School of Business and faculty director of the Energy Institute, told EnergySage. "Extreme weather impacts electricity systems and requires new investment, which feeds into rates."
Installing solar panels is the best way to fight energy cost increases while reducing the planet-overheating pollution that contributes to extreme weather. EnergySage offers a free tool to help homeowners get solar installation estimates and compare quotes.
Why is this important?
What's happening in California may be a sign of what's to come for the rest of the country.
"The state's skyrocketing electricity prices foreshadow what's likely to come nationwide," EnergySage writes, "as wildfires, floods, hurricanes, and storms require badly needed investments in new and improved grid resources."
Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner. |
Data centers are putting additional strain on the grid around the country. Electricity demand from data centers alone is expected to grow by 130% by the end of the decade, which will call for new energy generation sources as well as upgrading transmission and distribution infrastructure, all of which will lead to rate hikes.
What's being done about rate hikes?
The best thing individuals can do to save money and reduce stress on the grid is to invest in renewable energy sources like solar. EnergySage can help the average person save up to $10,000 on solar purchases and installation.
|
Do you think you're overpaying for electricity? Click your choice to see results and speak your mind. |
Yes 👍 The company also offers a free mapping tool that shows homeowners the average cost of home solar and any available local incentives on a state-by-state level.
Pairing solar panels with energy-efficient appliances like heat pumps can help save homeowners even more. EnergySage has a free heat pump quote tool to help homeowners find the right heat pump and installer for their home and budget.
More From EnergySage
💡Go deep on the latest news and trends shaping the residential solar landscape
Due to the passage of recent legislation, home energy efficiency upgrade incentives will expire at the end of the year, so it's important for anyone considering these upgrades to get the ball rolling sooner rather than later.
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.
Cool Picks
