In late 2022, Eversource announced that Connecticut customers would experience a 48% year-over-year supply rate increase due to the increasing cost of fossil fuel-based electricity. Around that same time, the Rhode Island Public Utilities Commission approved a 47% increase in residential electricity rates for the upcoming winter. Likewise, in Massachusetts, the National Grid warned that electric rates could skyrocket 64% over the 2022-2023 winter season.
The New Norm
These astronomical energy rate increases are indicative of a new norm in the Northeastern U.S.—the result of rising fuel costs, limited natural gas capacity, devastating weather events, and extreme temperatures. Adding to the cost issue is the fact that many utility companies are operating with failing power grids and lines that are decades old and in the process of replacement, with costs passed along to the customer.
As a result of these factors, in addition to environmental concerns, the U.S. is quickly pivoting to solar, wind, and other forms of renewable energy that are more cost-efficient and cleaner. By 2025, solar and wind power are expected to overtake coal as the world’s largest source of electricity.
Solar is catapulting as the energy source of choice for U.S. homeowners, with 1 in 7 expected to have solar panels installed by 2030. According to forecasts from the Solar Energy Industries Association, residential solar capacity will grow by 6,000 – 7,000 megawatts per year through 2027. To put this into perspective, the total U.S. residential solar capacity was just 22,000 megawatts as recently as 2020, but it is expected to create 30% of U.S. power generation by 2030.
Considering uncertainty in the traditional energy sector and recent spikes pointing to permanently high rates, solar has emerged as the most cost-effective and predictable energy option available. More solar will be installed in the next two years than the previous 40 years combined, as it proves to be the best solution environmentally and cost-wise.
The solar industry has barely scratched the surface in terms of potential and innovation, yet is already seen as the path toward revolutionizing our global power system. The solar energy future is arriving much faster than most people think, so consumers are encouraged to start learning about the process now while generous government incentives are still in place.
Considering solar? Use our Solar Savings Calculator to obtain a custom solar savings estimate for your home. We invite you to learn more about Smart Green Solar, our core values and our unique approach–which has led to us becoming a leading full-service provider in Rhode Island, Massachusetts, and Connecticut.