Understanding Your Utility Bill and the Rising Costs

Jan 16, 2024

If you’ve ever glanced at your monthly utility bill and found it confusing, you’re not alone. The various line items and numbers can make it challenging to grasp the true nature of your energy consumption charges. However, there’s a straightforward way to break it down.

The Basics: Kilowatt Hours and Your Total Bill

Your utility company, like Atlantic City Electric, charges you for each kilowatt hour (kWh) you consume. Take a look at the second page of your bill, and you’ll find the total consumption in the top right corner. For instance, if you consumed 1351kWh in a billing period, and your total bill is $300.66, you can easily calculate the cost per kWh. Simply divide your total bill by the number of kWhs consumed, revealing that, in this example, the cost is approximately $0.22 per kWh.

The Reality of Rising Costs

Examining historical data from the Energy Information Administration, a government website, we observe that energy rates in your area have nearly doubled over the past 20 years. Projections suggest a similar trend in the next two decades. What does this mean for you? If you currently have a $200 average electric bill, anticipate an increase to $300 in the next 10 years and $400 over the next 20 years.

Unlocking a Cost-Effective Solution with Solar

Enter solar Power Purchase Agreements (PPAs) or leases, offering a chance to lock in a fixed rate lower than your current utility costs. This rate remains constant and shields you from future increases. With no upfront payment required, solar systems under PPA include insurance, maintenance, monitoring, and a production guarantee.

Key Question: If you were offered the opportunity to lock in your gas price at $2 per gallon for the next 25 years, would you take it? The answer is likely a resounding “yes.” This is essentially what a PPA offers for your electricity costs – a chance to secure a lower rate than your utility.

To check if your home qualifies, please reach out to us! We’d love to hear from you.