• Home Home

New report shows home AC bills are about to skyrocket — this government program could help you save big

"As you start getting into temperatures like we're seeing, well over 100 degrees, it's a lot harder for the system to make up that difference."

"As you start getting into temperatures like we're seeing, well over 100 degrees, it's a lot harder for the system to make up that difference."

Photo Credit: iStock

A new joint report projects that summer cooling costs will soar, leaving Americans in 33 states vulnerable to heat-related illnesses because of the lack of shut-off protections. 

What's happening?

The National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate (CEPC) noted that U.S. households paid around $661 to beat the heat from June through September 2023. 

However, they will be paying around 7.9% more for air conditioning this summer at $719. This comes as more than 21 million homes are behind on their electric bills. 

An unprecedented rise of summer temperatures is one of the reasons for this, according to the NEADA and CEPC. The more hot and humid it is outside, the harder air conditioners have to work to keep indoor spaces cool.

"As you start getting into temperatures like we're seeing, well over 100 degrees, it's a lot harder for the system to make up that difference," senior fellow Jennifer Amann, with the American Council for an Energy-Efficient Economy's buildings program, explained to the Washington Post.

The Post also highlighted how extreme weather events like wildfires have caused bills to rise in some states. In California, for example, 16% of rate increases are because of the state's initiatives to keep the grid operational during wildfires.   

Why is this concerning?

Higher electric bills leave people vulnerable when temperatures soar. The NEADA and CEPC found that the percentage of households who have kept their homes at "unsafe" temperatures to save money on their utilities increased during a 12-month period. Low-income homes were particularly at risk, seeing the largest rise from 31.7% to 34%.

Heat is the leading cause of weather-related deaths in the U.S. on average — more than events like tornadoes, hurricanes, and floods, per the National Oceanic and Atmospheric Administration.

Unfortunately, heat waves are more intense and common than they used to be, with the Environmental Protection Agency noting their frequency has "increased steadily." The average heat-wave season is also more than a month longer than it was in the 1960s, meaning that household budgets are stretched for even longer. 

Scientists overwhelmingly agree that human activities have played a significant role in rising global temperatures that supercharge extreme weather, with dirty fuels like gas, oil, and coal accounting for the bulk of the pollution overheating our planet. 

What can be done about high electric bills?

Electrifying your home and investing in energy-efficient appliances are surefire ways to save considerable money on electric bills and reduce harmful pollution leading to more extreme heat. 

For example, swapping your traditional AC for a heat pump (which is used for heating and cooling) could knock off around $1,000 annually. Ditching your pollution-spewing gas stove for an induction cooktop is another upgrade that benefits your bottom line and your physical health.  

While some products have a higher upfront cost, the Inflation Reduction Act has numerous tax breaks and incentives to help Americans adopt these cleaner, money-saving technologies. 

Rewiring America has free tools to help homeowners and renters navigate the IRA, discover how much money they could save with electrification incentives, and connect with contractors. 

Join our free newsletter for easy tips to save more, waste less, and help yourself while helping the planet.

Cool Divider