What Factors Make Up Your Electricity Price? – The price of residential electricity in the U.S. changes every minute, and is dependent on a multitude of factors. Some of these factors have a nation-wide effect, but most take place on a regional level. Some factors are even more granular, affecting some – but not all – homes in a given neighborhood.
The regional portion of the equation is multifaceted. There are slow moving regional factors, such as the types of fuel used to generate the electricity and the upkeep costs of those power plants. There are also short-term issues affecting prices, such as seasonality and the weather.
Factors that Influence Your Electricity Price
While a family can’t do anything about the weather or the upkeep costs of the power plants, they can take steps to lower their cost per kWh of electricity. Some of these steps come at a fiscal price for the family, such as installing solar panels on their property. But steps can be taken that do not require any out-of-pocket money, such as switching electricity providers.