Running the furnace in your home this winter may cost more. The U.S. Energy Information Administration (EIA) released a statement on September 7, 2022 that it expects higher than average natural gas prices globally. The EIA wrote that this expectation is based on demand being high, yet inventory remaining low. In fact, the EIA expects U.S. natural gas inventories to be 7% below the previous five-year average.
According to EnergySage, despite predictions of a warmer and dryer winter than usual, homeowners should be prepared for costs associated with heating their home to rise due to the cost of natural gas (and other fossil fuels).
Natural Gas Costs
On November 15, 2022, the EIA explained that natural gas consumption in the United States has been setting new records in recent months.
Some sources say that natural gas costs are expected to keep rising. Natural gas prices are dependent on the energy market. EnergySage predicts that largest price increase will occur between 2022 and 2023. In 2020, 47.6% of homeowners used natural gas for heating their home, while 39.3% used electricity, and the remaining .2% used solar energy for heating.
Last year, in February of 2021, Winter Storm Uri caused natural gas prices to skyrocket to more than 65 times the normal costs to consumers during the severe winter weather event. After Kansas Governor Laura Kelly issued a State of Disaster Emergency Proclamation, the Kansas Corporation Commission filed an Emergency Order requiring energy companies that it regulates to provide services at normal costs, but defer its extraordinary costs to a regulatory asset account to be recovered in the future. Now that time has passed, many energy companies are working to recoup their increased costs.
Additionally, the United States Department of Energy also predicts that electricity bills will rise this winter as well.
In September of 2022, the National Energy Assistance Directors’ Association published a press release showing that the average cost of home heating is estimated to increase by 17.2% since last winter, which will be the second year in a row with major price increases.
Given the increased cost to run a household, people are looking for ways to save money on energy bills. In the next section, we’ll cover a handful of ways to save money on energy costs this winter.
Saving Money On Energy Costs This Winter
Whether your home furnace energy source is from electricity or natural gas, you’re likely looking for ways to save and have increased energy efficiency. Below are a handful of tips to implement at your home.
- Make sure that your home is well insulated. If necessary, add weather-stripping to your doors and windows.
- Install a smart thermostat
- If tolerable, adjust your water heater temperature down.
- Replace light bulbs with energy efficient LED lights.
- Open your blinds during the day to let the sun come into your home and warm the space.
- Unplug electronics that are not actively being used during the day.
- If you have a fireplace that isn’t being used, make sure that the damper is closed.
- Keep up regular HVAC maintenance appointments to ensure your HVAC system is operating with maximum efficiency.
At Larry Cook Heating and Cooling, every day we help customers find more energy efficient solutions for their home and business. If you’re located in the Wichita, Kansas metro area, contact us to learn how we can partner with you. You can reach us at (316) 322-5668!