What Should Your Annual Energy Costs Be?

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Home energy consumption is one of those things folks don’t think about much. According to Accenture, the average person spends six minutes a year (or 30 seconds a month) thinking about their home energy use.

This is unfortunate considering the tremendous impact that energy consumption has on our lives and on our wallets. We actually spend about as much annually on electricity and gas in our homes as we do for gasoline in our cars. But while we’re aware of every fluctuation in gasoline prices, we hardly ever think about our electricity/gas costs.

One reason is that we don’t understand our home energy costs. When we go to the pump, we know what we’re getting for our money. Not so much with electricity. What is a kWh? Am I paying more or less than what I should be paying? And in contrast to gas prices, which are displayed prominently on giant gas station signs, your energy rates are usually buried in some obscure spot on your utility bill.

The tool here, by Power2Switch, which helps you switch your electricity supplier and save on your electric bill, shows you what you can expect your annual energy costs to be based on your location and the size and type of home you have. Furthermore, it allows you to compare your expected energy costs to state and national averages. All numbers are based on public data provided by the U.S. Energy Information Administration (EIA).

If you are moving, especially to another state, this tool can help you predict how your energy costs will change and understand the impact of getting a big house vs. a more modest condo. Even if you aren’t moving, this tool, by providing a baseline for your expected costs, shows you your potential for savings throughout the year. Clicking the Power2Switch logo in the tool will connect you with a service to help you find lower rates for your area.