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Electricity costs are rising across the U.S. and states like Ohio are being hit especially hard. With a huge jump in their average electricity costs, many families are looking for a more sustainable solution. Let’s look at what has caused these outrageous electricity bills and how solar can help. 

rising home energy costs

Sharply rising electric prices in Ohio

Since 2008, Ohio has experienced electricity prices rising at a rate that is double the national average. Why on earth are their costs so high? The increases in rates are a result, largely, of the renewable power mandates that were put in place in 2008. While supposedly well intentioned, these mandates have had costly effects on Ohio families. 

The mandates required that by 2025, residents of Ohio purchase 1/4 of their electricity from alternative sources, which are designated by the government. This included 12.5 % from renewable sources. Now take note that the prominent source of renewable energy in Ohio is wind power, which costs 2-3 times more than conventional energy sources. This increase resulted in an electricity cost increase of approximately $190 per household.

Another cause for increase in prices is due to a lack of regulation. Ohio allows third party companies to resell electricity and water, which is causing a significant markup on monthly bills.

General US electricity prices:

When we compare the energy prices for Ohio with the rest of the United States, we notice a similar trend - the prices are increasing. In 2014, the price for electricity was at an all-time high for the U.S., which proves elevated prices all over the country. However, the national average rose by 3.2 %, whereas Ohio prices rose by 8.7%. 

Causes of high electricity prices

What is causing this increase in electricity prices? Let’s look at the evidence. 

Electricity markups:

A large problem occurring with elevated electricity prices are electricity resellers. This phenomenon is definitely a problem in Ohio, where third-party companies make big profits by reselling services from main providers. Unfortunately, their reselling actions are legal and many people fall into the trap. People who live in apartment buildings particularly suffer from this practice, since the company is chosen by their landlord. Markups can range from 8-40%, causing a large bill for tenants. Renters have no way to escape these tactics, because not paying their bill could lead to debt collection. These “middle-men” can even turn off power in the dead of winter as there is a lack of regulations for these providers. 

Even though these practices are still considered legal, there is clearly an absence of regulation present and more than 3 million people in Ohio are reportedly being affected.

Wind power distributions:

Wind power may be considered as environmentally friendly energy, but they also cause elevated power prices. This problem came to light when the American Wind Energy Association shamefully needed to admit that electricity prices are four times higher than the national average in nine out of the eleven states that produce the most wind energy.

The reason for those prices is because it is two to three times more expensive to produce! This was announced during a public hearing in the Ohio Senate Public Utilities Committee. Wind power is harder to produce and deliver and this leads to a clear increase. However, this does not mean we should deny the benefits of renewable energy all together, but need another solution.

Environmental regulations closing of power plants (Utility MACT):

The shutdown of coal-fire generated plants is also causing prices to elevate, especially since the demand is higher than ever! This can definitely be seen in Ohio, where Sherrod Brown voted to shut down polluting power plants. What first seemed as a brilliant, environmentally friendly idea, turned sour due to the fact that there simply was not enough supply for the increasingly high demand. In the meantime, more power plants are taken down, even while the demand is still high.

Gas pipelines affecting prices:

Pipeline constraints are definitely affecting the prices of today, and it does not look like this is going to be resolved in the near future. Demand is too high and constraints are limiting the availability of the needed energy.

Solar energy as a solution for high electricity prices

Solar power might be the only solution to the high electricity prices. You will not have to deal with third-party resellers, nor will you be affected by constraints places of gas pipelines. 

If you decide to switch to solar, you can take advantage of government programs, which could reduce the price of installing solar up to 50%. An increasingly large amount of people choose to go this route. 

Solar energy incentives:

People who are interested in solar power, can benefit from a number of solar energy incentives. Some of the programs available are corporate exemption, local loan program, private rebate program, property tax exemption, sales tax exemption, state grant program, utility loan program, utility rebate program and much more!

Benefits of solar:

The main benefit of solar is the reduced price. With energy costs higher than ever many people are turning to solar, since they only need to pay for the installation. Another big advantage is the fact that it is extremely environmentally friendly.

Other benefits of solar:

An additional benefit to solar is that it increases your property value considerably. When you have solar panels installed, you can estimate an additional $20,000 to your property value!

Solar Energy Provides a Sustainable Solution

The current prices of energy indicate that coal power plants and other polluting energies belong in the past. Wind power might offer an environmentally friendly solution, but nobody can deny the extra costs that come with it. Solar power is the energy of the future. Now is the time to install your solar panels with YellowLite, because you are able to take advantage of numerous benefits that will save you a lot of money long term! So if you plan on buying the best solar panels, cheap solar panels, the most efficient solar panels, even sunpower solar panels for your home solar system, know that solar panels cost less than ever. Solar panels in Ohio, solar panels Columbus Ohio, solar panels Cincinnati Ohio, even solar panels Ontario, even solar panels for your home, your solar panel roof is ready to be installed. Check out our solar panel calculator, even if you want to purchase cheap solar panels in Ohio. YellowLite solar a solar installation company in Ohio as a solar installer Ohio.

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