Rhode Islanders are facing a crisis. Electricity rates are rising nearly 50% on October 1st. Getting to specifics, if your average electricity bill is $150, it is about to jump to $220. That is a 47% increase. At 17.8 cents per kilowatt, this rate will be the highest on record. It is more than double the rate that has been in effect since April.
What is driving these costs? There are multiple factors. First and foremost we have to look at the rising prices of natural gas and coal. Most people don’t think about how traditional electricity is produced. It is generated by burning fossil fuels, primarily natural gas and coal. When the prices of those fossil fuels go up, so does the price of electricity.
Natural gas and coal are rising for two reasons right now. As the American economy rebounds from the pandemic, there is greater demand for these energy producing fuels. Energy is the fuel of our economy. As the economy ramps up, so does energy demand, and so do energy prices.
The other major reason for the price increases is related to Russia’s war in Ukraine which has kicked off an energy crisis in Europe as those countries turn away from Russia to meet their energy needs. This has increased demand from other parts of the world, raising the prices of coal and natural gas in the global market.
At Smart Green Solar, we are watching all of this very closely. We believe that the future of energy is personal power production, primarily through solar power. With personal power production, your energy costs are not dependent upon geopolitical events, or the supply of fossil fuels. That is because you own your own power. You produce it yourself (with the help of the sun). On top of that, solar power is a much more efficient method of energy production which dramatically reduces the amount of carbon emissions dumped into our atmosphere. For these, and many other reasons, we believe personal power production is the future.
That said, the rate increases we are seeing today will likely serve as a catalyst for more homeowners to make the switch to solar. Not only is personal power production the future but, because of the dramatically rising costs of the old system of energy production, that future is coming even faster now.
If you haven’t made the switch yet, reach out to us. Generous new tax incentives and state programs make this the best time to go solar. Most customers pay nothing out of pocket and begin saving money from day one. The only regret we hear is,“I wish I’d done this sooner.”