Home & Mortgage

Why Your Electric Bill Keeps Rising — and What Homeowners Can Actually Do About It

Rows of electric meters on a wall, with a sticky note reading “Same usage?”.
Photo by Jon Moore on Unsplash

Same house. Same thermostat setting. Same loads of laundry. The electric bill is higher than a year ago anyway, and last year's was higher than the one before. You probably aren't using more, since households nationally bought a little less power this June than last. What moved is the price of each kilowatt-hour, and part of that increase sits in lines the bill never explains.

See which lines on your bill moved

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Several causes are stacking up. Power demand is growing again, with data centers and manufacturing behind much of it, and the cost of keeping enough power plants ready gets spread across everyone on the system, households included. Utilities are also replacing old poles, wires and substations, and that shows up in the delivery part of your bill.

A state average can't tell you where your own increase landed. Some of it may be in the supply price, some in delivery, and some in a fixed monthly charge you pay no matter how carefully you use power. Which piece grew decides which fix is worth the trouble.

See whether you can shop for electricity

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Before anyone sells you a fix

Higher bills bring out the sales pitches. A few checks keep a fix from costing more than the problem it's meant to solve.

  1. A supplier at the door. In states where you can shop for power, don't let a door-to-door or phone salesperson rush you. Never hand over your bill or account number just to "check eligibility."
  2. A teaser rate. A low rate that turns variable after three months often costs more over a year than the utility's default price. Compare fixed-rate offers over the full term.
  3. A solar quote. Get at least three for the same system size, each with a price per watt, the yearly production the installer is projecting and the export credit rate it assumed.
  4. The roof under the panels. If it has less than 10 years left, replace it first.
  5. A heat pump rebate. Collect several quotes, and call your utility about rebates before you sign anything, since some of them require pre-approval.

Which fix pays off depends on which part of your own bill grew, and the article shows how to find that with two bills and a calculator.

See the fixes that cost little or nothing

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