Isaksen Solar Blog

Record High Electricity Rates Are Coming To Rhode Island

This summer has seen record high electricity rates across New England. Unfortunately, these record high electricity rates will be introduced to Rhode Island this winter. As the Providence Journal reports, starting October 1st, Rhode Island residents will see nearly a 47% increase in their monthly electricity bills. If you use 500 kWh of electricity in a month, which is the state average, you can expect your monthly bill to increase about $52, which is a change in an average electricity bill from $111 a month to $163 a month. If you are a commercial business owner, electricity rate increases will vary more widely depending on usage, increasing from a range of 41% to 51%.

To put this in a historical perspective, the predicted rates this winter will be the highest since 2000 and over double the current rate, increasing from 7.81 cents per kwh to 17.8 cents per kwh. This is especially high when looking at the increased winter rates from last year which were 10.9 cents per kwh. On average, this is 50% higher than rates over the 6 years.

For the most part, Rhode Island has been able to avoid increasing rates as the state buys its energy on a different schedule than the rest of New England. Right now, Rhode Island has the lowest rates in New England but its prices will match or pass the other states in the region when the rate change goes into effect.

Rhode Island Energy, the top supplier of electric and natural gas in the state, has been forecasting these price increases since the spring when prices were the lowest they had been in years. By foreshadowing this record winter increase it has been notifying its customers that the winter will not be friendly to their electric bills.

Of course, this price change is expected as Rhode Island Energy does change its prices twice a year and a rate increase is expected in the winter when there is an increased demand for natural gas as temperatures drop and the gas is used to heat homes. However, this rate increase exceeds the normally expected increase.

The rate increase that is coming this winter is extraordinary but makes sense with the economic recovery from the pandemic and the war in Ukraine which has been driving oil and gas prices up this summer. The Rhode Island Public Utilities Commission will have a final say on if the new rate hike will go into effect but it is expected that the latest increase will be approved.

Increases in electricity rates have become too common for homeowners across the region and have seemed like an unavoidable, inevitable, and variable expense where they have no idea what the next bill will look like and will continue paying these increasing rates forever.

This leads many homeowners to ask…

How Can I Stop Paying Rising Electricity Rates? 

At Isaksen Solar, we look to provide that answer for homeowners. Simply having a conversation about solar can open up a new world of possibilities and show homeowners that they have options to save money on energy. We can work with you to create your own custom solution to start saving the day your system is turned on and start producing your own energy.

Homeowners powering their home with solar are experiencing monthly savings, a lifetime positive return on their investment, and may even have their utility company pay them instead of paying their power company every time the prices change while getting the same exact same service.

Residential solar installations will continue to help Rhode Island residents balance their 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.