(303) 447-0300
Publish Date: August 26th, 2024
It’s no secret that your electricity rates are consistently increasing. You’ve seen this rise year after year. And this pattern isn’t likely to shift anytime soon.
While electricity rates are rising and creating higher bills for you, there are other factors contributing to your high bills. Namely, climate change.
As our climate warms, you’re doing all you can to stay cool – like running your AC during these dog days of summer – and that’s running up your bill.
The truth is that increasing electricity costs, high electric bills, and a warmer climate due to climate change are facets of our lives that are here to stay.
At Namaste Solar, we want to get solar on the roofs of Coloradans who would benefit the most. If you’re experiencing high bills, solar could give you (and the planet) relief without sacrificing comfort.
How Climate Change Impacts Your Electricity Bill
The impacts of climate change are far reaching, and we’re already seeing the direct impacts here in Colorado. Increasing summer heatwaves, drought, and fire are all realities here.
According to the Denver Post, “Colorado’s warming climate means scarcer water supplies, 10 times as many summer heat waves and more intense wildfire seasons... By 2050, scientists expect the state’s average temperature will reach up to 5.5 degrees hotter than the baseline average computed between 1971 and 2000. And by then, the average year will be as hot as the hottest years Colorado experienced through 2022.”
And these changes have the potential to shake the resiliency of the grid.
As the summer heats up, it’s likely that you’re running your air conditioning more just to keep comfortable. It can cost around $900-$1,200 each year just to run your air conditioner. As the temperatures spike, so will that bill.
With Xcel’s time-of-use billing, electricity used on-peak hours (1-7pm) is the most expensive. That’s when there is the highest demand, especially during the summer months when that is the hottest time of the day. Similarly, Fort Collins’ peak time in the summer is 2-7 pm.
In addition to higher bills because of higher consumption, your bill is also rising because electricity rates are.
Average Residential Electricity Prices from 1999 to 2025
In 1999, the national average for electricity rates was $0.08 cents per kWh. This summer, the cheapest you can get electricity from Xcel in Colorado is $0.12/kWh and on-peak rates are a whopping $0.32/kWh.
.png?width=521&height=302&name=image%20(1).png)
Xcel's Time-of-Use Rates for Summer 2024
All of this is compounding and isn’t likely to get better anytime soon. However, solar is a solution that gives you locked-in electricity rates, a lower bill, and much needed relief for our environment, helping to mitigate climate change.
The Time for Solar + Home Electrification is Now
So, the cost of your electricity bill is rising because you’re consuming more to stay cool and electricity rates are increasing. The climate is warming, causing you to run your appliances to stay comfortable. And running your appliances is contributing to climate change.
While this issue is complex and compounded, there’s one solution that’s incredibly simple.
Solar. Heat pumps. And battery storage.
Let’s start with solar. Solar is a powerful antidote to rising electricity costs and climate change. When you go solar, you’re buying your electricity in bulk.
The same way you buy a 4 pack of toothpaste at Costco for more than 1 tube would cost but with a lower cost per unit, solar is buying your electricity in bulk at a rate that’s lower than you can get from your utility. And you’ll lock in this rate for 25+ years.
When you’re running your AC or heat pump off your home solar system, you’re using clean, green energy to cool your home. And since you’ve locked in those rates, you’re doing so at a fraction of the cost and, as utility rates continue to rise, the cost to cool your home won’t rise with them.
So, how do heat pumps help you combat high bills? They’re an incredibly efficient way to heat and cool your home. They run off electricity and use a refrigerant cycle to transfer heat from different areas.
During the summer, the heat pump absorbs heat from inside the home and transfers it to the air outside, just like a traditional air conditioner. In the winter, the cycle is reversed. Even when it’s cold out, heat pumps can still extract heat. These cycles are all controlled by the pressure of the refrigerant in the system.
There are different kinds of heat pumps, so here’s a quick breakdown:
- Air Source Heat Pump: These heat pump systems are best for converting your conventional heating system to a high-performance heat pump system. You can choose to go all-electric or use a hybrid approach, keeping your gas furnace as a backup.
- Mini-Split Heat Pumps: These units offer great retrofit or add-on options for homes, additions, or basements. They have an outdoor compressor/condenser and an indoor air unit. Mini-splits are ductless options for your home.
- Ground Source Heat Pumps: These heat pumps take advantage of the consistent temperature of the Earth underground to get the highest efficiency out of heat pump technology. They’re also called geothermal heat pumps, and they use the existing ductwork in your home.
Remember how we mentioned that heat pumps are incredibly efficient? MIT calls this their, “climate superpower” because they can reach 300%-400% efficiency. All of this means that heat pumps can cool your home for a fraction of the price of an AC, can do it more efficiently, and in a way that’s better for the environment – especially if you’ve got a home solar system powering it.
The final component of this climate super-trio is With battery storage, you can experience true energy independence. And you’ll get the most relief from high bills. When you add battery storage to your solar system, you get all the perks of home solar plus a few more.
Battery storage allows you to stay powered during grid outages and use your solar power at night. With a battery, you can choose to discharge it during the times of day when electricity is the most expensive, namely on-peak rates, ensuring your electricity is even more affordable.
Namaste Solar is Your Partner
The frustration of high bills is something we’ve all felt. We want to help you get relief from those bills and help our planet at the same time.
To get a quote on home solar or battery storage, and to talk about the benefits of adding a heat pump, reach out to our non-commissioned experts today. They’re committed to giving you straight forward advice, not a sales pitch. Getting a quote today will ensure that next summer you’ll be able to enjoy low bills, a comfortable home, and electricity powered by the sun.
