Did you know that last year, a staggering 27% of Americans struggled to keep up with their electric bills? The combination of global conflicts and climate change has left the energy market vulnerable to unpredictable price hikes. So the question of why my electric bill is so high is common.
For a quick overview, 3 fundamental reasons are culprits for this. These include
- Your power consumption patterns
- Unwise appliance selection
- Lack of awareness about energy conservation practices
Read this guide to comprehensively understand why your electric bills are so high, the common and uncommon reasons behind this, and how you can lower your power bills.
Why Is My Electric Bill So High?
High electricity bills can consume a major portion of your energy budget. The two primary reasons are increased power consumption and price hikes. Summer witnesses the highest energy demands, so energy rates are at their peak.
The US Department Of Energy says that only heating and cooling appliances account for around 43% of an average household’s energy bill. In extreme weather conditions like prolonged summers and winters, this eventually translates into high electric bills.
But this is only one side of the picture for your high electricity bills.
The other reason is energy price hikes. Due to climate change and supply chain disruptions in energy market, there seems an anomaly in electricity price hikes. For example, In 2022, there was a 12.6% boost in electricity prices, which is the highest since 1981. This compared to an average annual increase of 2.6% could be shocking.
Further, energy companies have also changed their policies. This includes the onset of time-of-use plans, in which energy prices fluctuate depending on the time of day. A lack of understanding of such policies further contributes to high electricity bills.
What Causes High Electricity Bills?
If you are doing much to save on your energy bills, but your efforts are going futile, then you might not be putting them in the right direction. Understanding the causes that make your bills high can help you take a more prudent approach.
Inefficient and old appliances
Inefficient home appliances like refrigerators, hair dryers, and dishwashers could certainly raise your energy bills, and the situation is more worrisome if you are lazy about your AC maintenance.
Some figures suggest that AC contributes up to 50% of your total power requirements. This figure peaks even more if your AC is not properly maintained. A common example is blocked AC filters that make your AC work double to achieve the same level of cooling, eventually consuming more electricity.
Similarly, old home appliances consume more power as compared to their new energy-efficient counterparts and thus could raise your electricity bills.
Poor home insulation
Heat follows the principle of conduction, which means it travels from an area of high temperature to an area of low temperature. In summer, it travels from outside to inside, and in winter, it goes inside to outside.
In both cases, your home insulation acts as a barrier to this heat exchange. However, heat loss due to poor insulation makes your heating and cooling appliances work harder to maintain an optimum temperature, eventually raising your energy bills.
Energy usage during peak hours
With the introduction of TOU plans, electricity companies are charging customers for their electricity consumption on a per-hour basis. Now, rates change throughout the day and are maximum at peak hours. So, if your bill is high despite limiting your use, examine your usage during peak hours.
Unmanaged HVAC
The share of HVAC is almost half of your total energy bills, so it is obvious that this drains an extensive amount of power. But the situation becomes worrisome when your HVAC is old and not properly managed.
The usual lifespan of an AC lies between 10 and 15 years, and with the passage of time, its parts become less productive, which eventually makes them consume more power. Further, the recommended thermostat temperature to maximise energy savings is 78°F and 68°F in summer and winter, respectively. Frequent changes in this range or adjusting the thermostat above and below the recommended threshold would require more voltages, which will eventually cause high energy bills.
Excessive use of lights and fans
Though lighting does not contribute a large portion of your power bill as a single unit, its cumulative effect can be devastating. Households often use lighting to boost the overall aesthetics of their homes. However, this, combined with the unwise use of fans, can significantly raise your energy bills.
Hidden voltage consumption
The average recharge time of a phone and laptop is 2 to 4 hours, but they keep draining power even if left on standby. However, this standby current flow is very low but accumulates to around 5%-10% of your monthly average bill, costing $100 per year, according to the U.S. Department of Energy.
How Can I Lower My Electricity Bill?
Your monthly power bills are dependent on various factors. While you can’t control energy price hikes, maintenance of your appliances and changing power consumption habits can lower your electricity bills. Here’s how you can do this.
Choose ENERGY STAR appliances
When buying new appliances, look for their power needs. The Energy Star logo can help you in this regard. This government initiative recommends home appliances based on their environmental friendliness, sustainability, and, most importantly, energy efficiency. By relying on Energy Star recommended appliances, an average household can save around $450 annually.
Monitor your power consumption
Monitoring your power consumption is crucial to control your energy bills. This includes determining the wattage consumption of different devices.
For example, if you want to calculate your refrigerator's monthly power needs, get a watt meter, plug it into the wall outlet, and then plug your refrigerator into it. Now monitor the power consumption for 24 hours and multiply it by 30 to calculate your refrigerator's monthly power needs.
The same methods used for different appliances could give you an idea about how much power each of your appliances is using. Then, you can limit the use of high-wattage appliances to lower your electricity bills.
Invest in Solar panels
Solar panels capture sunlight to convert it into electricity. Its fuel source is free, so as long as the sun is available, you can harness the benefits of free electricity. However, one concern about solar panels is their efficiency, which usually lies between 15% to 20%. The more the efficiency of a solar panel, the more it can produce through the same amount of solar radiation.
BLUETTI solar panels are exceptional in this regard, with their 23.4% industry-leading efficiency ratings. Further, their Price Match Guarantee ensures you get the best available price in the market. Below are two variables to choose from.
BLUETTI PV200 Solar Panel
PV200 can be a reliable source to power your appliances as long as solar radiation is available. Here is why chose PV200
- With its 200W output capacity, it can fulfil the power needs of all your small appliances.
- Manufactured with monocrystalline solar cells, the more recommended material for solar panel production.
- Equally compatible with both in-house and off-grid use.
- High-efficiency ratings of 23.4% ensure a reliable power supply even in bad weather conditions.
- It is foldable and lightweight, making it very portable.
- Compatible with almost all MC4 connector solar generators.
BLUETTI PV350 Solar Panel
This budget-friendly choice is an effective solution to lower your power bills. Below are some of its features that make it a truly trustworthy partner for a reliable power supply.
- PV350 has an output capacity of 350W. This means it can run all your small to medium-sized appliances, such as a refrigerator, your drone, or small gadgets like laptops.
- It is easily portable, with foldable dimensions of 35.6 X 24.1 X 2.5 and a weight of 14kg.
- Like all other BLUETTI panels, it also comes with 23.4% efficiency ratings, ensuring you never run out of power, even in bad weather conditions.
- Its ETFE coating with IP65 water resistance makes it scratch-free and further boosts its efficiency and durability.
- This panel comes with an MC4 connector to make it compatible with all related solar generators.
- Lastly, with a kickstand, you can easily set up your panel wherever you want.
Find an energy plan suitable to your need
In many states of the US, the energy market is deregulated. This means you can choose an energy provider that offers the best plan and rates. While a time-of-use plan is mostly opted by consumers, it might not go well with your energy consumption patterns.
So, instead, look for a fixed-rate plan. This might have slightly high per-kWh rates, but once opted for, you will be free of energy market price hikes, eventually lowering your monthly power bills.
Why My Recent Electricity Bill Was High?
If you have witnessed a sudden increase in your recent energy bill while you are following all the necessary considerations, there might be some other issues that can trigger this increase.
The first reason could be faulty electrical wiring. Sometimes, due to an issue with the earth's wire, electricity starts flowing towards the earth. This leads to continuous voltage flow, eventually raising your energy bill exponentially. To cope with this, switch off your main breaker and see the meter. If it is still running, then this is the reason for your high power bill.
Another reason that could take a heavy toll on you is electricity theft. However, you can follow the steps above to find out if someone is stealing your electricity. Sometimes, a fault in the meter could also result in high power bills.
However, whatever the situation, if you find your meter running even after switching off the main circuit, call your energy supplier immediately to fix the issue.
Which Home Appliance Use The Most Electricity?
Overall HVAC appliances and specifically electrical heaters drain most out of your power supply. Next to them are water heaters and air conditioners. As per some stats, these appliances account for more than 50% of the electricity consumption of an average American household.
However, the share of any appliance in your monthly energy bills depends on your personal use. For example, if you run a dishwasher or washing machine daily for any specific reason, their power consumption will obviously be high.
Does the appliance consume power even when it is not in use?
Yes, appliances continuously consume a small portion of electricity when on standby and not in use. According to a finding, in an average US home, nearly 40 devices continuously extract power. So, when combined, this could significantly boost your monthly energy bill.
This makes it necessary to unplug all your devices when not in use. By doing so, you can save around 10% of your monthly bill.
Can Solar System Lower My Electricity Bills?
Solar systems are the most effective options for lowering your electricity bills. They not only ensure a reliable power supply, but their generated power is environment-friendly and sustainable, ensuring zero carbon footprints.
However, two factors that have hindered their growth in households are high upfront costs and concerns about power supply at night. BLUETTI solar generators have effective solutions to both issues. Read below to find out how BLUETTI AC300 could help you.
BLUETTI AC300
This unit has a modest output capacity of 3000W and a surge power of 6000W, which is enough to run almost all of your home appliances simultaneously. It comes with a 3072Wh LiFePO4 battery that could ensure a reliable power supply for hours.
However, if you find this insufficient, you can further attach 4 B300 batteries, which will boost the capacity to 12288Wh, which is enough to keep your appliances running for hours and days.
This unit comes with a Price Match Guarantee for its upfront cost. This means if you find a similar product that is less priced than this, you can claim the extra amount within 30 days of your purchase.
To further make every penny of investment worthwhile, its battery offers 3500+ lifecycles, which means a lifespan of more than 10 pus years with one each cycle per day.
Other specifications of this product include 7 different charging streams. So, even in bad weather, when solar radiation is not available, you can charge your batteries through generators, AC, lead-acid batteries, or a combination of AC+solar.
To find a system that effortlessly fulfils all your power needs, whether your goal is to lower your bill or you want to go completely off-grid, you can explore a wide variety of related products at BLUETTI's official website or call customer care, which is available 24/7 for your help.
The Bottom Line
High electricity bills could be worrisome, especially in today’s scenario when inflation is at its peak everywhere. However, the main culprit behind them is unawareness of energy conservation practices. You can significantly cut your energy bills by following the simple solutions above.
Though all the price control solutions are good, shifting completely towards solar power is the most recommended. BLUETTI solar products offer efficiency and reliability, and also qualify for a 30% Federal Tax Credit, providing an immediate 30% reduction in upfront costs. Take a look at the extensive range of products available to find the one that best suits your requirements.
