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Electricity Prices Keep Trending Up, Jumping 6% in May 2024

Concerned woman reviewing her electricity bill, with the headline "Electricity Prices Trending Up" over top.
PublishedJune 13, 2024
UpdatedJune 13, 2024
AuthorHeadshot of Andrew Blok.Andrew BlokWriter and EditorEditorRyan Barnett HeadshotRyan BarnettSVP, Policy & New Market Development

You’ve probably gotten used to hearing about inflation. And, while inflation has cooled from its peak in 2022, some purchases, like electricity, keep getting more expensive.

Prices for consumer goods increased 3.3% from May 2023 to May 2024, the US Bureau of Labor Statistics said on Wednesday. According to that same data, electricity prices increased 5.9% over the last year, more than food, shelter, or clothing. Overall though, inflation in May didn’t change from April.

“Consumers across the US are increasingly concerned about rising electricity costs, which have become more extreme and recurring in recent years,” said Ryan Barnett, Palmetto’s senior vice president for policy. 

Utilities keep asking for and winning rate increases. In March of 2024, APS, a utility serving much of Arizona, received approval for a change that would increase residential electric bills by an average of 8%. The California utility PG&E increased rates by nearly 13% at the start of 2024, costing customers an average of $33 per month.

While you don’t have control over how much electricity prices go up, you can take steps to reduce how much energy you use. You can start small by remembering to turn off lights and adjusting your thermostat a few degrees. Technology, like smart thermostats, can help, too. When the time comes to replace major appliances, installing energy-efficient options, like heat pumps and heat pump water heaters, can reduce your electricity consumption.

If you’re looking to take an even bigger bite out of your electric bill, solar panels can provide you with free electricity whenever the sun is shining. Residential solar systems have a payback period of just six to ten years in some places. By the time you’ve saved enough on your electricity bill to cover the cost of installation, utility rates may be even higher. Palmetto’s LightReach Energy Plan lets you go solar and trade the upfront installation cost for predictable, affordable monthly payments.

If you’re interested in making a switch to solar, get an idea of how much you can save with Palmetto’s interactive solar calculator, and reach out to a solar expert today.

See what solar can do for you:

My electric bill is $290/mo
About the AuthorHeadshot of Andrew Blok.Andrew BlokWriter and Editor

Andrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.

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