Here's How Going Solar Can Protect You From Electricity Rate Increases

As of January 1, 2024, Seattle City Light customers are experiencing the latest impact of a planned rate increase that could cost the average residential customer an additional $9 per month, or $18 per bimonthly billing cycle. As electricity rates continue to rise, many homeowners are exploring alternative energy options to protect themselves from increasing costs. Seattle City Light plans to implement a series of annual rate increases to the city’s electric utility in the coming years. By installing rooftop solar panels, you can protect your home against these future rate increases and effectively reduce your reliance on the electrical grid and its ever-increasing prices.

Electricity Rate Increases

According to the Seattle City Council plan, a 4.5% rate increase was planned for the beginning of 2023 and 2024. After that, a 3% rate increase would occur yearly through 2028. Seattle City Light began to implement these new rates starting Jan. 1, 2024. Additionally, two automatic surcharges have been proposed:

  • A 1% “passthrough” increase to account for higher costs from the Bonneville Power Administration (BPA) in 2024.
  • A 4% Rate Stabilization Account (RSA) surcharge due to increased net wholesale power costs resulting from unfavorable weather and market price conditions.

These changes will result in an anticipated bill increase of about $9 per month, or $18 per bimonthly billing cycle, for a typical residential customer.

Inflation, Climate Change and Global Fuel Prices – The Reasons Behind High Electricity Rates

Inflationary pressure has pushed up the prices of consumer goods and services, including electricity. Additionally, global fuel prices directly impact energy costs in the market. Installing solar panels on your roof can help fight this inflation and reduce your energy bills.

The more you rely on the electrical grid and utility providers, the more susceptible you are to energy rate increases. By installing solar panels and harnessing your own source of energy production, you’re protecting your home against future inflation or rate increases because you reduce your need for utility-provided electricity. As a result, you save money in the face of a utility business model subject to the forces of the market.

Control Over Resources and Costs

Solar panels have an upfront cost; however, once installed, the energy they produce is virtually free, and maintenance costs are minimal and predictable. Having control over your energy resources and costs is a significant advantage in today’s fluctuating markets.

The Impact of Climate Change

Seattle City Light provides the rate increase explanation: “Drought conditions reduced our hydroelectric generation resource. With the colder winter and spring temperatures coupled with warmer summers, electricity demand has increased region-wide. For City Light, customer demand exceeded the supply from predominantly hydroelectric resources, so additional power was purchased on the wholesale market at high prices.”

Don’t Wait – Go Solar Now

As electricity rate increases are expected to continue in the coming years, now is the perfect time to invest in rooftop solar panels. Not only will you reduce your reliance on the electrical grid, but you will also save money and protect the planet.

Book Your Free Solar Site Survey Today

Share this article. Knowledge is power...