If you're considering financing energy improvements for your home, shop around for an option that best suits your situation, making sure you understand the terms and risks of each option.
In the U.S., utility and gasoline costs consume between 5 and 22% of families' total after–tax income, with the national average at 7%, according to WalletHub's 2016 Report. As expected, monthly energy costs can vary wildly from state–to–state, with some states seeing nearly double the cost as others – due in large part to local climates.
It's important to note that areas with lower energy prices don't always enjoy lower costs; it's the consumption of the energy that primarily drives the cost. For example, "In areas such as Southern Louisiana, with scorching summer weather but cheap electricity, households still end up with higher out–of–pocket costs than those in energy–expensive Northern California, where the temperate climate keeps heating and cooling units idle most of the year," according to WalletHub.
So, who spends the most and who spends the least?
|State||Average Monthly Energy Cost|
|Highest Energy Costs|
|Lowest Energy Costs|
|District of Columbia||$219|
Other interesting facts from this report:
- Washington has the lowest electricity price, with Hawaii having the highest
- Hawaii consumes the least amount of electricity (per consumer), while North Dakota consumes the most
Natural Gas Costs
- Idaho has the lowest natural–gas price, with Hawaii having the highest
- Hawaii consumes the least amount of natural gas (per consumer), while Illinois consumes the most
Follow this series to learn more about energy efficiency and ways you can improve your monthly energy costs while working to save our natural resources.
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