Giving rise to more energy-conscious consumers, electricity bills continue to increase while heat waves stretch across the country. According to SunPower’s latest Energy Switch Index, 1 in 5 consumers are worried that they eventually will not be able to afford their energy bill.
Surveying 2,000 Americans to better understand energy preferences and the Inflation Reduction Act’s (IRA) impact on the transition to clean energy, the report found that 9 in 10 Americans have tried at least one thing to reduce their electricity bill. Additionally, 1 in 10 have delayed other payments like medical bills because of high electricity costs.
A recent study by WalletHub notes that a quarter of U.S. households currently spend more than 6% of their income on utility bills. Comparing energy bills across the U.S.—including electricity, natural gas, motor fuel and home heating oil—WalletHub found that Washington, Idaho, Utah, Nebraska, and North Dakota have the lowest electricity costs.
Hawaii, Massachusetts, California, Alaska, and Rhode Island have the highest electricity costs, according to the analysis, and four of the five states with the most expensive bills also post the lowest electricity consumption per consumer—Massachusetts, Rhode Island, California, and Hawaii. New York was included in the top five for lowest electricity consumption per consumer as well.
The highest energy consumption of the year is recorded in July, followed by August, according to the U.S. Energy Information Administration. Of no surprise, the highest electricity consumption rates per consumer are concentrated in the South with Louisiana reporting the highest consumption followed by Mississippi, Alabama, Arkansas, and Tennessee.
Yet nearly 250 million Americans are unaware of the $369 billion in federal clean energy benefits and tax credits available in the IRA bill to offset these rising expenses through clean energy upgrades. That number includes 130 million who don’t know the IRA contains clean energy benefits, 58 million who have never heard of the bill, and 61 million who don’t think they are eligible, according to SunPower.
The perceived cost of switching to solar energy has kept 88% of respondents from considering the switch largely because 3 in 4 find the IRA energy benefits and tax credits difficult to understand. However, 78% think installing a solar system would lower their monthly energy expenses.
Sixty-one percent of Americans who are considering the switch to solar say they would do so if they received a government incentive. Of homeowners who know about the IRA, 50% are more likely to think they can afford solar and are two times as likely as to say they plan to install energy-efficient appliances like induction stoves or heat pumps.
