Why is My Electric Bill So High in the Summer?

If you've found yourself wondering, "Why is my electric bill so high in the summer?" -- You're not alone.

Many Michigan homeowners see a noticeable spike in their energy bills as the temperatures climb.

RetroFoam of Michigan has more than 20 years of experience insulating thousands of homes across the lower peninsula. While we specialize in foam insulation, we also know a little about helping customers save money on their monthly energy bills.

For the last several years, RetroFoam of Michigan has been recognized by Consumers Energy for the company’s efforts in making customers’ homes more energy-efficient and getting them the most rebates from the energy provider.

Let's dive into why electricity bills tend to go up during the warmer months and what you can do to bring those costs back down.

Why Your Electric Bill Goes Up in the Summer

It's no secret that electricity bills are often higher in summer.

But what's behind the seasonal price hike?

Here are some of the key reasons for those higher bills:

• Increased Demand for Cooling: Running your air conditioner, fans, and dehumidifiers all day adds up. In fact, air conditioning alone accounts for a large chunk of summer energy use in most homes.
• Seasonal Fuel Costs: The cost of electricity in the summer reflects fuel price fluctuations, limited power plant availability, and rising consumer demand, according to the According to the U.S. Energy Information Administration (EIA).
• Grid Strain: Utility companies often rely on more expensive electricity sources to meet peak summer demand, and those costs are passed on to you.
• Maintenance and Infrastructure: Power plants and grid infrastructure require more upkeep during high-demand seasons, which can increase costs.
• Weather Conditions: Extreme temperatures can increase the demand for cooling, resulting in an increase in electricity demand, which then increases the price.

So, yes, your electric bill is higher in summer than in winter for most households, particularly those with central air conditioning. The average electricity bill in summer can be significantly higher due to all these factors.

Is the Electric Bill Higher in Winter or Summer?

That depends on where you live and how you heat and cool your home.

In Michigan, where many homes use gas heat in the winter, summer electric bills are usually higher. Your electricity bill during summer includes all your cooling costs, on top of your usual usage from appliances, electronics, and lighting.

If you're noticing that your electric bill keeps going up, you're not imagining things. Nationally, utility rates have been rising year over year. So if you're asking, "Why are electricity bills going up?", part of the answer lies in these broader trends.

In 2022, the average annual price of electricity in the U.S. was 12.49 cents per kilowatt-hour (kWh). According to the EIA, the annual average prices by utility customers were:

• Residential – 15.12 cents per kWh.
• Commercial – 12.55 cents per kWh.
• Industrial – 8:45 cents per kWh.
• Transportation – 11.66 cents per kWh.

The average daily electricity use in the U.S. in 2024 was about 30 percent more expensive than four years prior, according to Statista. 

Tips to Lower Your Summer Electric Bill

Even though your bill may go up in the summer, you're not powerless -- pun intended.

Try these simple changes to see real savings:

• Bump the Thermostat: Consumers Energy says you can save 3 to 4 percent on cooling costs for every degree you raise your thermostat. Setting it from 74 degrees Fahrenheit to 77 degrees could cut your bill by more than 10 percent.
• Tune Up the AC: Schedule a pre-season checkup with a licensed HVAC technician. A well-maintained unit runs more efficiently and may qualify for rebates if you're a DTE customer.
• Use Fans Wisely: Set ceiling fans to rotate counter-clockwise in the summer. This pushes cool air down and helps you feel more comfortable without cranking the AC.
• Block the Heat: Close blinds during the hottest part of the day, especially on south-facing windows.
• Switch Out Bedding: Light, breathable sheets and bedding can help you sleep comfortably without lowering the thermostat.

Insulation: Your Secret Weapon for Lower Summer Bills

A huge, often overlooked factor in high electric bills is your home's insulation.

Poor or outdated insulation lets hot air in and your cooled air out, forcing your air conditioner to work harder and your electric bill to skyrocket during summer.

Foam insulation creates an airtight seal in your attic, walls, and crawl space, preventing air leaks and keeping your home cooler without the need for constant AC use. Unlike traditional materials, foam doesn't settle or degrade over time, so it continues to perform for years to come.

Let's Talk Comfort and Savings

Curious if poor insulation is what's making your electric bill higher in summer?

Visit our Learning Center to explore how foam insulation works, or contact us for a free consultation.

With foam insulation, you don't have to choose between comfort and affordability -- you can have both.

Key Points:

• Summer cooling is a major energy drain. Running air conditioners, fans, and dehumidifiers significantly increases electricity use.
• Electricity rates spike in hot months. Higher demand, fuel costs, and grid maintenance contribute to higher prices during summer.
• Michigan homes often see higher summer bills. Most homes use gas heat in winter, so cooling systems drive up summer electricity costs.
• Utility rates are rising nationwide. If you're asking why electricity bills are going up, it's not just you. Prices have increased year-over-year.
• Thermostat changes = real savings. Raising your thermostat just a few degrees can reduce cooling costs by 10 percent or more.
• Insulation makes a big difference. Upgrading to foam insulation helps keep cool air inside and hot air out, lowering your summer energy bill long-term.

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