Isaksen Solar Blog

Electricity Price Increases Are Coming To New England Homeowners This Summer

Unfortunately across New England homeowners can expect more electricity price increases this summer as announced by WCVB. From June to August 2022, energy costs will be rising and this will be seen in residential electricity bills every month. The estimation is that energy price increases will lead to a 11% rise from the average electricity bill homeowners paid in the summer of 2021. With sky high prices at grocery stores and the gas pump this is another unfortunate side effect of the inflation we have seen over the past few months. 

According to the U.S. Energy Information Administration, electricity prices in the Northeast regions, inlcuding New England, will exceed $100 per megawatt-hour which is a large increase from the $50 per megawatt hour prices in the region last summer. This would make the average residential electricity bill about $165 per month in June, July, and August. 

The recent electricity price increase is due to the reliance of natural gas and the historical rise in the price over the last few months. According to Chris McKinnon of Eversource, the electricity price increase happening because, “We don’t actually generate any power here. We deliver it. And so, we’re seeing those commodity prices, the price of natural gas going up because of some of those geopolitical issues that are going on.” 

This is a common theme as the EIA also said in its latest Short-Term Energy Outlook, “Various factors determine wholesale electricity prices, but the cost of fuel for fossil-fuel generators is an important driver. Wholesale prices are especially tied to natural gas prices because natural gas-fired units are often the most expensive (marginal) generators dispatched to supply power.”

In the past to offset rising energy costs, natural gas has been replaced with coal-fired energy when natural gas prices have gone up. However, coal power plants are not producing as much considering coal capacity retirements, constraints in fuel delivery to coal plants and lower-than-average stocks at coal plants, the EIA said. This is especially true in Southcoast, MA where Brayton Point Power Station the largest coal-burning plant in the state closed in 2017. 

This is leading homeowners to ask: 

How Can I Stop Paying Rising Energy Costs? 

At Isaksen Solar we have the answer. With the rising electricity prices we are seeing many homeowners beleive they are a prisoner to the times and must continue to pay while hoping for prices to decrease. That is until they have a conversation about solar and they see their options. Through solar homewoners create their own solution by producing their own energy.  

Homeowners powering their home with solar are experiencing immediate monthly savings, a lifetime positive return on their investment and may even have their utility company pay them instead of paying their power company more every year for the same service. 

Residential solar installations will continue to help New England residents balance the reliance on natural gas, reduce carbon emissions and give residents freedom from the constant price increases. 

If you have questions about how solar can save you money and reduce your carbon footprint give us a call, 508-567-0647 or get started on your free quote today!

Should I Get Solar Panels?: A Quick Guide To Buying Solar Panels For Your Home

Benefits of Purchasing Solar Panels

  • Monthly Savings On Your Electricity Bills 
    • The biggest motivator for homeowners to switch to solar is seeing an immediate savings in their next monthly electricity bill once they are installed. Across the country electricity prices continue to rise at historic rates. This is why solar in Massachusetts has become so popular. As of Feburary 2022, Massachusetts has the 4th highest electricity rates in the country. Rhode Island solar panels are also popular as they have the 5th highest electricity rates. Homeowners looking for ways to save money have found solar panels are an efficient solution that creates long-term savings. Instead of paying the local electricity company for your energy supply you are supplying your own energy from your roof or ground mount solar panels. Your solar panel installation will create enough energy to cover your monthly electricity usage so you no longer need to pay your energy provider for their energy. This means the constantly increasing electricity bill you have will now be delivered with ‘No Payment Due’ and in some cases adding credits to your account for overproduction! 
  • Lifetime Of Financial and Environmental Savings 
    • With solar panels those monthly savings turn into lifetime savings and a meaningful contribution to helping the environment. By creating your own energy through purchasing solar panels, you avoid paying rising electricity rates that change with the price of natural gas. In most cases, you pay a locked-in rate or loan fee for the lifetime of your solar panels. In 2022, the average price of electricity rose 7.5% from 2021, which meant more expensive electricity bills. With solar in Massachusetts, everytime the price increase that is additional savings for your household since your price stays the same. Once your solar panels are paid off, your electricity is completely free. Over the 25 year lifetime of solar panels that could equal $60,000 in savings. The additional benefit to buying solar panels is the reduction of CO2 emissions since you no longer rely on natural gas. One solar panel can offset have the same CO2 offset as planting 10 mature trees. For the average home that produces 7,000 Watts of solar power, this is the same as planting 180 trees a year. For this reason solar panels is the most significant way to decrease your carbon footprint without disrupting your current way of life. 
  • Option To Lease Solar Panels or Purchase Solar Panels 
    • How much money you will save on your solar panels depends on your choice to lease or buy solar panels. If you lease your solar panels then you will not have any upfront cost. Instead of paying a large sum upfront, you get panels on your roof and a locked in monthly payment. This monthly payment will be less than your current electricity bill. However, leasing solar panels can open the door for increased payments in the future if your lease agreement forces you to pay for increases in electiricty rates as the price of energy increases. 
    • When you purchase solar panels there is an upfront cost which is usually paid for with a loan or cash. However, the total cost of solar will be offset by solar incentives. There are both federal solar tax credits and Massachusetts solar incentives available. These programs will decrease the total cost of solar panels and increase your savings each month and over the lifetime of your solar panels. When leasing solar panels, homeowners do not qualify for these incentives or the ability to create credits which adds up to a lot of added money over the lifetime of your solar panel installation. 
  • How Much Do Solar Panels Cost? 
    • Every home solar panel installation is unique. There are a lot of factors that go into determining how much solar panels will cost you. The key factors are how much energy you use, how many panels your home can support, whether you lease vs buy solar panels and what solar incentives you qualify for. The only way to know the price you will pay to install solar panels will be to get a solar quote. At Isaksen Solar, we quote solar for your home at your consultation free of charge. 
  • Truth About Solar Panels
    • We understand buying solar panels can be a major decision for homeowners. That is why the most important part of installing solar panels should be to find the best solar companies in MA and RI. A search of “solar companies near me” is a good starting point. The goal for every homeowner should be to find a solar company they trust. Whether its MA solar or RI solar panels, where to buy solar panels is an important question to answer. At Isaksen Solar, we aim to make the home solar panels process as simple as possible and answer all your questions.