According to an Energy Information Administration report, power prices are rising in most parts of the U.S. this year.
Utility Dive reported that the agency expects natural gas costs to rise by 24% from the 2024 average. Prices will remain about the same in the Northwest and parts of Texas. However, other regions will face significant price increases due to the rising cost of natural gas.
"We forecast that the 11 wholesale prices we track ... will average $40 per megawatt-hour in 2025 (weighted by demand), up 7% from 2024," the agency wrote in its report. "We expect the largest increases (about 30%–35%) will occur in the Southwest and California regions."
It predicted the average wholesale power price would rise by as much as $10 per megawatt-hour in the Southwest, California, and parts of New England.
The rising cost of natural gas is concerning because this is how many people power their homes. However, the agency doesn't expect residential electricity prices to increase significantly in 2025.
For those looking to lower their utility bills, going solar is one of the best and most reliable ways to save money on power costs — with the added benefit of protecting our planet from overheating pollution. Although the upfront costs of solar panels can be prohibitively high for some people, embracing clean energy on a budget is an option.
For example, many homeowners lease solar panels to reap the benefits of lower energy costs while avoiding massive upfront costs.
If you are interested in leasing solar panels, Palmetto offers a solar feasibility and energy modeling platform to help you assess costs. It has a $0 down solar lease option and subscription plans so you can design a customized, affordable system.
With the costs of natural gas rising across the country, now is the ideal time to look into solar leasing for savings without the major upfront investment. Instead of having most of your electric bill go toward supporting dirty energy, you'll get predictable monthly solar payments with installation and maintenance included and a 90% solar production guarantee.
In a LinkedIn post sharing the Energy Information Administration report, one energy market expert wrote, "For businesses, this means higher operational costs and the need for smarter energy strategies."
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Definitely 🥰 Another LinkedIn user in the energy industry commented, "Increasing power requirements from [artificial intelligence] data centers continue to rise prior to availability of incremental grid supply, exacerbated by increasing power generation operating costs primarily due to the cost of natural gas, which is the largest fuel source for our aging domestic grid."
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