Energy costs are becoming unaffordable in America, and the biggest issue is distribution, not generation.
Generation involves how electricity is produced. However, distribution is the final delivery of that electricity from local substations to homes and businesses.
What's happening?
On EnergySage's "Plugged In" podcast, energy expert and entrepreneur Jigar Shah explains how energy distribution costs have skyrocketed in recent years.
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Jigar says that most homeowners already understand how the energy used to power their homes is generated, such as from coal, gas, or solar.
"What they don't understand is that those kilowatt hours generally have to be transported via your transmission grid to your local distribution grid and then from your distribution grid to your home," he shares.
Jigar explains that the distribution part of homeowners' energy bills is what's driving them up so high.
"Distribution used to be 20% of your bill," he says. "Today, it's 50% of your bill."
Why are energy distribution costs important?
As Jigar points out, energy distribution costs play a huge role in the overall price of electricity for consumers. As energy demand rises, especially from tech industries such as data centers and cryptocurrency mining, distribution costs increase, affecting people's monthly electricity bills.
Jigar mentions how concerning it is that one in six people is now behind on their electricity bills. This type of budget strain can impact overall financial stability and be a major, avoidable source of stress.
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Save $1,000 this year 💸 Understanding how these costs affect your bills is crucial for making informed decisions about how to source and use energy at home. Due to rising grid costs, many people are switching to clean, renewable solar energy by installing panels at home.
What's being done to make energy affordable?
Going solar is one of the best ways to slash your monthly energy bills and boost your home's resiliency during extreme weather. EnergySage's free services help the average homeowner save up to $10,000 on solar installations.
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💡Go deep on the latest news and trends shaping the residential solar landscape
The company also offers a helpful mapping tool to estimate solar costs based on your location and find all available incentives where you live.
Once you've gotten your solar system in place, you can protect yourself from power outages and save even more on energy costs with backup battery storage. EnergySage also has a free tool to help you compare battery installation estimates.
Fortunately, there are simple, practical ways to reduce your monthly energy expenses.
For example, unplug electronics and appliances when they're not in use. Also, consider upgrading your appliances to energy-efficient models when they need to be replaced.
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