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Why Is My Electric Bill So High in Colorado? How Solar Can Help.
- October 1, 2024
If you’ve been feeling helpless as your electric bills continue to climb, you’re not alone. Many local homeowners are asking, “Why is my electric bill so high in Colorado?” Surprise bills seem to have become the norm, often without any obvious changes in your energy consumption habits. So, what’s going on? Let’s explore some of the key reasons behind these higher bills and ways you can protect your family against rising utility rates—like with solar energy.
What’s Driving Your High Utility Bills in Colorado?
1. Time of Use Billing
One of the major factors contributing to higher electric bills is “Time of Use” (TOU) billing, a system implemented by many utility companies, including Xcel Energy. Under this billing structure, the cost of electricity varies depending on the time of day. Rates are typically higher during peak hours—usually late afternoon to early evening—when demand is at its highest.
If you find yourself using most of your electricity during these peak hours, you’re likely paying more than you would under a flat-rate system. Unfortunately, with work schedules, school, and family life, avoiding these peak hours can be difficult. Consider installing solar + battery backup to offset these costs (see the comparison chart).
In August 2024, Xcel has proposed to EXTEND Time Of Use Peak hours until 9PM.
2. Increased Utility Rates
Utility companies will raise their rates over time, for example Xcel has increased rates 10.5% per year over the last 5 years! Rate increases may cover the costs of maintaining and upgrading their infrastructure, among other reasons. These rate hikes, often incremental, can add up year over year, leading to significantly higher bills even if your usage stays the same.
It’s frustrating to see your bills go up without any noticeable change in how much electricity you’re using. Unfortunately, these rate increases are largely out of your control, and they can really add up over time. Installing solar today will help offset future utility rate increases, as well as save you money in the first year (see charts).
3. A Growing Family
As your family grows, so does your energy consumption. More people in the house typically means more electronics, more laundry, more hot water, and more heating or cooling. Even small additions, like a new baby or an aging parent moving in, can have a significant impact on your overall energy use.
While it’s wonderful to have a full house, the added costs can be a burden, especially if you’re already dealing with higher rates and TOU billing.
4. Driving an Electric Vehicle (EV)
Switching to an electric vehicle is a great way to decrease carbon emissions and save on fuel costs, but it can also lead to higher electric bills. Charging an EV requires a significant amount of electricity, especially if you're driving long distances or have multiple EVs in your household. While the cost of electricity for charging is typically less than the cost of gasoline, it still adds to your overall energy consumption, which can push your bills higher—especially charging during peak TOU hours.
Are you interested in installing an EV charger? We can help! Reach out today.
How To Lower Your Electric Bill
Offset Your Energy Usage with Solar
With all these factors driving up your electric bills, it might feel like you’re stuck paying more and more each month. There is a solution that can help you regain control over your energy costs: solar power.
As a Colorado solar installation company, our pros see every day how solar helps our local community gain greater control over their energy. By installing solar panels, you can produce your own electricity, reducing your dependence on the grid and protecting yourself from rising utility rates long term. As you can see in the charts below, not only does solar save you money long term, but you’ll see lower energy bills within the first year! Solar allows you to take advantage of the sun’s energy, which is abundant and free. Plus, many solar systems are now more affordable than ever, thanks to advances in technology and available incentives.
Solar is customized for every home. Savings shown here are examples of a typical solar system, your savings may differ.
Combat TOU Billing with a Battery Backup
Add a battery backup, like the Tesla Powerwall 3, to combat TOU billing. A solar battery allows you to store the solar energy your array produces during the daytime sunshine for use when the sun goes down at night–conveniently when TOU rates are at their peak. Your family won’t need to change their whole schedule just to save during mid- and on-peak hours, which is when the majority of families use the most energy. Rebates and incentives make batteries more affordable than ever.
Not only can solar and battery storage help lower your electric bills, but they also offer environmental benefits by reducing your reliance on fossil fuels. It’s a win-win situation for both your wallet and the planet.
Maximize Energy Efficiency in Your Home
Energy-efficient appliances like Energy Star washing machines, refrigerators, and efficient lighting help Colorado homeowners lower energy bills and reduce their environmental impact. With the state’s sunny climate, combining these upgrades with solar power further cuts energy costs and reduces reliance on the grid.
Denver’s Climate Action Rebate (CARes) program offers upfront rebates for battery storage, providing $500 for installation. Homeowners with heat pumps, heat pump water heaters, or bidirectional EV chargers can qualify for up to $2,750. The rebate can cover up to 80% of the total project cost, making energy-efficient upgrades even more accessible.
Get Billing Assistance or Explore Low-Income Solar Incentives
If you are really struggling with energy bills, find out if you qualify for a billing assistance program like Energy Outreach Colorado or the Weatherization Assistance Program (WAP). Visit the Colorado public utilities commission website for more information on utility bill assistance programs. In addition, consider that solar incentives can help make solar more affordable for those who need it most. The Xcel Energy Solar Rewards Disproportionately Impacted Community (DI-Community) program offers hefty solar and battery rebates for qualified customers who live in specific areas and meet demographic income, race, and housing burden criteria. These communities typically face greater environmental burdens and climate change impacts. Reach out to find out if you qualify.
Schedule Your Solar Consultation Today
No more wondering why your electric bill is so high in Colorado! If you’re ready to see your energy bills go down instead of up, it’s time to explore your solar options. Schedule a consultation for a solar quote today and take the first step toward energy independence. Our pros will assess your home’s energy needs and help you determine the best solar solution for you.
Don’t let high electric bills burden your budget—take control with solar power.
