Home Heating Costs Are Set to Rise Again

Winter Is Coming

Americans may need to brace for a winter of hefty utility bills.

After millions of households already struggled with high bills from the Northern Hemisphere’s hottest summer on record, more extreme weather is expected in the colder seasons.

The Heat Is On

Home heating prices could jump more than 10% on average this year, according to the latest winter heating price outlook from the National Energy Assistance Directors Association (NEADA).

Electricity costs will contribute the steepest increase in prices, with U.S. households relying on electricity for heat expected to spend a total of more than $1,200 on power this winter. That’s nearly 14% up from last winter. Propane and natural gas costs could meanwhile increase by more than 7% each, and heating oil could go up by around 6%. This forecast is largely due to rising costs of maintaining electricity grids, higher prices of certain fuels, and colder conditions in the Northeast and Midwest, per CNN reporting.

Falling Behind

An estimated 21 million households fell behind on electricity bills in June, owing a collective $13.5 billion, according to NEADA. That’s $1 billion more than June 2023. Making matters worse, federal home energy assistance has fallen in the past fiscal year, tumbling by $2 billion to around $4 billion.

Some households may look to tap renewable energy sources like wind and solar, which added a record amount of energy last year, per U.S. Energy Information Administration data. But the bottom line is for most Americans, staying warm this winter will be more expensive.

Disclaimer
SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.

The information and materials may contain hyperlinks to other websites, we are not responsible for the content of any linked sites. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi HK. These links are provided for informational purposes and should not be viewed as an endorsement. The risk involved in using such hyperlinks shall be borne by the visitor and subject to any Terms of Use applicable to such access and use.

Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.

Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.