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The effects of climate change are clearly visible to anyone living in the US this summer, as the US has been experiencing extreme heat and bad weather so far.
This story is part of CNET Zeroa series that maps the impact of climate change and examines what is being done about the problem.
But climate change, which is largely caused by the use of fossil fuels for energy — is also likely to impact your wallet. While climate change is largely driven by the choices of large corporations and large countries, we as individuals bear the costs.
One way this shows up is on your monthly energy bills. Rates have gone up significantly in recent years, and extreme weather is likely causing you to use more energy to heat and cool your home. In other words, the cost of energy and how much you use is going up.
“Climate change is putting upward pressure on both of those things,” said Andrew Meyer, CEO of Arbor, a technology company that helps customers manage their energy bills.
Read below to find out why climate change is increasing your energy costs.
Most Americans think climate change will cost them money
Many people already know this intuitively.
In a recent CNET survey of U.S. adults, 60% of respondents said they believe climate change will cause them to pay more for home energy. Only 13% disagreed, and the rest weren’t sure.
The finding was consistent across geography and generations. Regardless of where survey respondents lived or how old they were, a solid 60% saw climate change as a factor in their rising energy bills.
And they’re right. Experts say climate change is contributing to higher bills in a number of ways, but fortunately there are ways to limit those costs.
How Climate Change Affects Energy Bills
The first way this happens is quite simple: Climate change is causing temperatures to rise, which means Americans are using more energy to run their air conditioners in the summer.
“Heat has a direct impact on usage, which is one of the most important factors determining cost,” Meyer said.
But it’s not just that summer temperatures are a bit higher in July or August. It’s also that the “air conditioning season,” so to speak, is getting longer. Where Americans used to use their air conditioners only from June to August, they may now use them from May to September. They use their air conditioners more days of the year and for more hours per day.
“That is [where] “Americans really see a difference,” said Grant Goodrich, director of the Great Lakes Energy Institute at Case Western Reserve University.
But that’s not the only factor at play. As Americans use more energy to cool their homes, that energy is also getting more expensive, in part because of climate change. Meyer explains that higher demand for energy — driven not just by more AC use, but also by the electrification of everything — is pushing up rates, in a simple supply-and-demand equation.
And as utilities transition away from fossil fuel plants, they are spending more money to build wind and solar power. “That’s where a lot of our cheap baseload power goes” in the form of fossil fuels, said Gilbert Michaud, assistant professor of environmental policy at Loyola University Chicago’s School of Environmental Sustainability.
While this has clear environmental benefits, it can also lead to higher energy rates. “Utilities are very good at implementing every single [cost] to consumers,” Michaud said. (It’s worth noting that many utilities are also known for channeling a lot of customer dollars (towards lobbying against climate regulations.)
Goodrich, however, is a bit more cautious about drawing a direct line between climate change and rising utility rates. He said it’s hard to generalize and the landscape looks different in every state. “It’s not a very clear picture,” he said.
Other Ways Climate Change Affects Your Bills
As if rising energy bills weren’t enough, climate change also has major financial implications.
Take, for example, the increasing frequency of extreme storms, which can cause major damage to power systems (and thus higher costs for utilities to repair them) and lead to more power outages.
According to Meyer, these power outages could have a “serious” negative impact on local businesses and the economy.
You may also see climate change charges on your home insurance bill. Some insurance companies reject completely now to provide coverage in high-risk states, such as California or Florida, due to weather and natural disasters exacerbated by climate change, such as wildfires and hurricanes.
And even if you can find insurance in those states, rates are up to compensate for the increased risk of extreme weather conditions.
Ways to keep your energy bill under control
There are a number of ways you can turn the tide and reduce your home energy costs in the face of climate change.
- “The first thing you should look at in a home is your insulation,” Goodrich said. A poorly insulated home is an energy hog. Insulation is relatively inexpensive and can really help lower your heating and cooling costs.
- Windows and doors are also a good place to start. Make sure everything is sealed to reduce drafts, and consider replacing any old doors or windows in particular, Goodrich advises. Even something as simple as adding shades to south-facing windows can keep your home cooler and reduce air conditioning use.
- Smart thermostats can also help you optimize your HVAC system. App-controlled models allow you to adjust the thermostat when you’re away from home and return to your desired temperature when you return.
- If you’re in a “deregulated” state with Retail Energy Choice, you can choose an energy provider with lower rates. “You can lower your costs just by being smart and getting the best rate possible for you,” said Meyer, whose company helps customers switch energy providers in such states.
- Installing solar panels is a bigger investment, but it can take a big chunk out of your energy bill. Federal and state financial incentives can make this type of project surprisingly affordable. “You’ll find it’s very, very beneficial,” Goodrich said.
