Sometimes we all need a little nudge to do the right thing. Choosing to reduce your energy consumption is great when it’s good for the polar bears and the rainforest, but you probably don’t think it affects you directly. The good news and the bad news is that rising electricity costs make it so that doing the right thing for the planet is also the right thing for your budget. It might just be the nudge some of us need to be more conscious of our electricity usage.
We all know we can easily reduce our impact on the planet and our budget by reducing our energy use in various ways. But how much difference does it really make? How much money can you really save by reducing your electricity usage? Turns out it depends on where you live. As you can see in the image above and the table below, the cost of electricity varies widely between states.
An interactive version of the image is available in the original article from the Huffington Post, but above is just a sample of how widely costs can vary between states. Why the range of prices between states? Varying local infrastructure, climate, availability of sources, pervasiveness of renewable energy technology, and other factors account for the variation. And rates will continue to climb. According to the New York Post, electricity rates will likely increase about 4% each year as coal-fired power plants shut down and are increasingly regulated in the coming years.
In another graphic in the article, the electricity usage by state is shown. And guess what — the states with the highest energy costs also have the lowest use! High-cost Hawaii has one of the lowest collective uses of electricity (it helps that it’s always pretty warm there), while some of the states where electricity cost is low have some of the highest rates of usage (such as Washington, Texas and Arkansas).
What does this mean for you as a user looking to reduce your energy costs? If you live in Hawaii or New York, cutting energy costs makes sense for your own wallet AND those polar bears. Those living in the states that have the highest cost of electricity are actually double incentivized to reduce their consumption: not only is it better for the planet, it’s a quicker return on investment when they see reduced costs on their electricity bill in a short time period. But, if you live in Texas where electricity rates are incredibly low, it’s a bit harder to convince everyone to reduce energy just for the sake of reduction, since it doesn’t impact their personal budgets as swiftly or as greatly. The upfront costs of LEDs and appliance upgrades might deter those living in states with lower electricity rates, and it might be harder to see the benefit of the upfront costs. However, as noted by Forbes, even though a incandescent bulb costs about one dollar compared to a new LED bulb at $25, the lifespan and operational costs make it the cheapest option for the long-term, both for your personal carbon footprint and your budget. To upgrade appliances, consumers can get incentives from the state and federal governments to help reduce the cost of new Energy Star refrigerators, fans, air conditioners and other high-cost items.
Just as the once high cost of solar power has been reduced to make panels more affordable and the payoff period shorter, innovation in products and increasing energy rates will continue to shorten the return on investment for all upgrades. Even in states where energy rates are low and the return on investment might be a bit slower than high-cost states, there are still many incentives for consumers to make efficiency upgrades, which benefit all consumers (and polar bears!) immediately and in the long-term.