Electricity demand is at an all-time high — and so are the prices, according to researchers at Bank of America Institute.
In May 2024, the year-over-year inflation rate for electricity prices in the U.S. hit 5.9%, up from 3.8% last January. Unfortunately, prices are projected to continue increasing, thanks to industrial onshoring and the rise of data centers and artificial intelligence.
"Electricity demand is actually increasing, pressuring supply, and it may continue to do so for a long time as industrial onshoring and the AI revolution are both turbo-charging the need for generating capacity," Bank of America Institute researchers wrote in a multipage analysis. "This demand for significant investment in generation and related distribution infrastructure could be a headwind to consumers' utility bills for the foreseeable future."
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The cost of installation 💵 The inevitability of high utility bills is a great reason to consider switching to solar.
By investing in rooftop solar, households can eliminate their electric bills, saving an estimated $25,500 to $33,000 on electricity over the panels' lifetime, according to Forbes.
Plus, households that install solar can benefit from a 30% tax credit, thanks to President Biden's Inflation Reduction Act. However, this incentive may not last much longer if President-elect Trump follows through on his threats to reverse Biden's clean energy policies — all the more reason to act sooner rather than later.
EnergySage, an online resource for finding the best deals on clean energy solutions, can save homeowners even more on solar by providing shoppers with free resources to get quick solar installation estimates and compare quotes.
Besides saving on electricity costs, investing in solar is also an investment in sustainability, with major environmental benefits.
Unlike traditional electricity production methods driven by dirty energy, solar panels do not produce heat-trapping gases while in use, meaning less planet-warming pollution is released into the atmosphere. In fact, switching to solar can reduce a home's carbon pollution by up to 80% in one year, according to The Renewable Energy Hub.
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