Electricity prices in Texas are on the rise and many homeowners are feeling the pinch due to the hike in their monthly bills. Traditionally in Texas, electricity prices are lower in the spring and fall seasons, with summer being the worst period. This year, however, even the spring rates have been historically high, and there are no signs that Texas electricity prices are going to return to 2021 levels any time soon.
In this blog post, we will highlight some of the reasons for the rising costs in Texas, including:
- Geopolitical impacts
- Supply chain issues
- Weather forecasts
We will also look at the financial benefit of going solar in Texas, which is a way to gain independence from rising grid electricity prices. Let’s get started.
Why Texas Electricity Prices Are Going Up so Quickly
The first reason why electricity prices are so high is the ongoing geopolitical impact, related to Russia’s war against Ukraine. A high percentage of electricity in the state is generated with natural gas-fired power plants, which means that there is a link between the cost of natural gas and the wholesale price of power.
Natural gas prices have been increasing for a number of years, though it has peaked in recent months. There have also been supply chain issues for various utility-scale renewable energy projects planned in Texas. Because less wind and solar projects are coming online, the reliance on natural gas remains high.
Additionally, higher than normal storm activity this year has been projected by the National Oceanic and Atmospheric Administration. There are also forecasts for this summer to be one of the hottest on record in Texas. Both of these factors are unfortunately driving electricity rates higher.
The Benefits of Going Solar in Texas
One way to attain grid independence and avoid the rising cost of electricity is to install solar panels on your property. With a lower cost per kilowatt-hour, electricity generated by solar panels can help Texan homeowners to save upwards of $1,500 per year on their electric bills.
Over the course of 40 to 50 years, homeowners stand to save tens of thousands of dollars on their household’s electric bills. A move to solar energy can help homeowners to dramatically reduce or entirely wipe out their monthly bills and attain long-lasting independence from the main grid.
If you are interested in learning more, we recommend that you contact a local solar installer today.
How to Deal With Rising Costs in Texas
If your household has been affected by rising electricity prices, then perhaps it’s time to make the switch to solar energy. With greater grid independence, your household can dramatically reduce its monthly electric bills over the course of several decades.
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