Beat Increasing Power Rates: Why Now Is the Time to Go Solar

Energy bills just keep going up, and now, with Rocky Mountain Power increasing rates once again, Utah residents are feeling the pinch. In June, the company announced a 30.5% rate hike. This was later reduced to 18.1%, but then they quietly started charging another 11.8% on the Energy Balancing Account (EBA), bringing the total back up to around 30%.

With inflation already making daily life expensive, rate hikes could stretch budgets even further. But there’s a silver lining: moving to solar power can help keep your energy bills low and protect against future price hikes.

Let’s examine the reason behind increasing power rates and how you can fight back.

Why Are Rates Increasing?

Rocky Mountain Power’s recent rate increase is part of an adjustment tied to its EBA. The EBA is a price adjustment that credits or debits users based on fluctuating power costs and other market expenses outside the utility’s control. But why are these rates going up in the first place?

It boils down to rising coal and natural gas costs. Fuel prices have soared with high production costs and increased demand in the global energy market. The electric company is increasing rates to cover these costs, which is why we’re seeing the hike. As fossil fuel prices continue to fluctuate, energy costs become a moving target, leading to unstable and ever-increasing bills for homeowners.

How It Affects Utah Residents

As a Utah resident, how exactly does this affect you? According to recent reports, the average homeowner pays about $156 per month for electricity. With the newly implemented 18.1% rate increase, plus the 11.8% EBA adjustment that quietly took effect on July 1st, homeowners can expect an additional $560 per year in energy costs.

Here’s how it breaks down:

• Current monthly cost: $156
• Proposed 18.1% increase: $156 × 18.1% = Approximately $28.24 additional per month
• EBA adjustment (11.8%): $156 × 11.8% = Approximately $18.41 additional per month
• Total monthly increase: $28.24 + $18.41 = $46.65
• Annual increase: $46.65 × 12 months = Approximately $559.80

That’s an extra $560 or more out of your pocket each year! And while $560 might not seem earth-shattering in a single year, over time, it adds up—especially when combined with other household expenses affected by inflation.

Looking ahead, the situation may become even more concerning. Over the last 20 years, power prices in Utah have been increasing at an average of 4-5% per year. In 2004, the average residential power bill was around $604 annually. Today, that same bill has nearly doubled to almost $1,100.

The message is clear: as long as we remain dependent on traditional power sources, we’re at the mercy of these relentless price hikes.

Frequent Power Outages

The problem goes beyond rising costs. In 2024, thousands of Rocky Mountain Power customers along the Wasatch Front have experienced outages for various reasons—ranging from wildfires and windstorms to wildlife causing havoc in the systems.

On June 20th, over 19,000 customers in the West Valley City area lost power for about an hour due to a grass fire. Later that same day, another 2,100 lost electricity because of a squirrel. Even a bird landing in the wrong spot can leave entire neighborhoods in the dark!

While some outages are resolved within hours, the impact can be much longer-lasting and costly—think spoiled food or potential damage to electronics. Imagine losing a freezer full of groceries or having electronics damaged when the power surges back on. Now you’re facing unexpected costs, with no compensation from the power company.

Outages in Utah Are Becoming a Regular Thing

To make matters worse, these outages aren’t just rare occurrences anymore; they’re becoming routine in Utah. In August, over 18,000 people across Clearfield, Syracuse, and West Point experienced an outage that lasted nearly four hours. The reasons vary—preventative shutdowns to avoid wildfire risks, interference from fiber optic lines, and even vehicle accidents and lightning strikes.

When Rocky Mountain Power is increasing rates while service reliability declines, it’s no wonder homeowners are exploring alternative solutions, like solar.

Why Consider Solar Energy?

With increasing power rates and the uncertainty of energy costs, solar offers a reliable and cost-effective solution. Switching to solar allows you to lock in fixed energy rates, freeing yourself from the constant rate hikes imposed by the electric company. Unlike traditional power, solar energy costs remain stable because the sun doesn’t send an invoice!

Many Smart Wave Solar customers have reported significant savings over time. While the upfront cost of installing solar panels might seem steep, it’s a long-term investment that can pay off in lower energy bills.

Solar systems typically last 25 years or more, so you’ll be reaping the benefits for decades. Furthermore, the federal tax incentives for solar installation make it an even smarter financial move.

Backup Power Solutions

Want to make your home even more resilient against power outages? Pair solar systems with emergency backup batteries, such as the Tesla Powerwall 3. These backup solutions store excess energy your solar panels generate, providing a reserve you can tap into during power outages. The backup keeps your home running smoothly and makes you less reliant on the grid when problems arise.

A backup battery also keeps critical appliances and devices functioning during outages—refrigerators, baby monitors, security systems, nebulizers, and life-preserving medical equipment. With Smart Wave Solar’s backup solutions, you’ll have peace of mind knowing you’ll always have a reliable power source, even when the grid fails.

Say Goodbye to Increasing Power Rates

It’s clear that increasing power rates aren’t going away anytime soon. As Rocky Mountain Power and other utilities continue to raise prices, homeowners are left footing the bill.

But you don’t have to play this game. When you switch to solar with Smart Wave Solar, you take control of your energy costs, lock in a fixed rate, and even protect your home and loved ones during power outages.

Don’t let rising electricity rates burn a hole in your pocket. Visit Smart Wave Solar today to see if you qualify for solar installation and start enjoying a more predictable and affordable energy future.