Building a just and equitable clean energy economy is that it’s an investment that will pay off — creating new jobs and jumpstarting the economy — while also helping struggling families save money. Here are just some of the ways that clean energy investments can help consumers save money by both reducing the cost of energy and reducing energy usage.

Energy Costs

Transitioning To A Clean Energy Economy Actually Lowers Energy Bills.

• • Research shows investing in clean energy, energy efficiency, and home weatherization programs lowers utility bills. 

  • An October 2021 report from the Rhodium Group found that federal investments in clean electricity, electrification, and efficiency would save the average U.S. household roughly $500 a year in energy costs.

  • A 2022 analysis from the Rocky Mountain Institute found clean energy tax credits for the power sector could save American electricity consumers $5 billion annually by 2024. 

  • A study published by Stanford University researchers in October of 2021 showed that by switching to 100% clean and renewable energy, household energy costs could drop by 63%, electricity blackouts can be avoided, and the investments could create 4.7 million jobs. 

  • The study’s lead author said: “Technically and economically, we have 95 percent of the technologies we need to transition everything today.”

  • A 2020 analysis by Rewiring America shows a transition to a clean energy economy would save U.S. consumers as much as $321 billion in energy costs.

  • The Rhodium Group found that aggressive clean electricity tax credits could cut national average electricity bills by about 4% from today’s levels. (See Figure 9.)

  • Under a transition to 100% clean energy in the electric, transportation, building, and industrial sectors by 2035, each American household stands to save on average between $1,050 and $2,585 ​annually on their energy bills.

  • In Arizona, a 2018 study found that average electricity bills in 2030 would be three dollars a month less if utilities sourced 50% of their electricity from renewable sources. The savings grew to five dollars a month lower in 2040, and total electricity system cost savings from 2020 through 2040 were more than $4 billion.

  • According to Stanford’s Mark Jacobson, “at least 37 papers among 11 independent research groups find that the electric grid can stay stable at low cost with at or near 100 percent wind-water-solar.”

  • A Princeton model found that transitioning to net zero kept the cost of the energy system similar to historical spending levels.

  • A study from UC Berkeley found that a future of 90% renewable energy by 2035 would cut wholesale electricity costs by about 10% from today’s prices, though they would remain slightly higher than if no policy actions were taken.

  • The Department of Energy projects that connecting communities to solar power through the Low Income Home Energy Assistance Program will produce significant electricity bill savings, including savings of 20% in Illinois, New Jersey, New York, and New Mexico, and 50% in Washington, D.C. and Colorado.

    • The program could deliver electric bill savings of $240 million in Colorado, $300 million in Illinois, $175 million in New Jersey, $30 million in New Mexico, $400 million in New York, and $40 million in Washington, D.C.

  • Arizonans could completely eliminate their utility bills with a 10 kW solar array.

    • A 10 kW solar array in Phoenix would produce twice the energy needed by an average utility customer, allowing owners to receive about $600 back from the utility for excess energy generation. 

  • Duke Energy will cut residential energy rates in Florida because of retroactive tax credits from the Inflation Reduction Act.

    • The tax credits come from nine solar units currently under construction or operational in Florida that meet IRA tax credit requirements. 

  • Texas wind and solar saved customers nearly $28 billion over 12 years. 

    • Texas residents and businesses are on track to save about $11 billion this year because of low-cost renewable energy compared to record high natural gas and coal prices.

  • Clean energy incentives in the IRA will lower energy costs, according to utility CEOs.

    • Tax advantages make it affordable for utilities to directly own and operate solar power facilities, passing savings onto customers. 

  • Xcel will shutter coal fleet early, saving customers in Texas and New Mexico more than $70 million in energy costs. 

Ignoring Climate Change Will Make Your Electricity Bill Go Up

• If we don’t address climate change, electricity costs for residential and commercial ratepayers will go up by as much as $30 billion per year by mid-century due to rising temperatures brought on by climate change.

  • By 2040, residential and commercial power expenditures are projected to rise by as much as 18% if carbon emissions aren’t curtailed.

  • If emissions are left unchecked, by 2100 average annual energy expenditures from increased energy demand will rise an estimated $32 billion to $87 billion.

• Climate change could force Arizona residents to pay up to $110 extra annually in electricity bills. Arizona businesses could see an added cost of over $5,500 for electricity by 2040 due to climate change.

• A January 2022 study found that climate change will increase the cost of power on the west coast.

• Climate change will not only impact the price of electricity, but will also affect grid transmission infrastructure, resulting in higher costs for consumers:

  • Electricity transmission and distribution infrastructure expenditures could rise as much as 25% due to climate change alone.

  • The most severe impacts of climate change on grid infrastructure are projected in the Southeast and Northwest.

  • A proactive adaptation strategy reduces the expected costs of climate change by as much as 50% by 2090, compared to a scenario without adaptation. 

Wind And Solar Are Cheaper, And Prices Are Still Falling

• Wind and solar are already the cheapest sources of electricity in the United States, and additional federal investments in clean energy will reduce costs further.

  • A 2020 BloombergNEF study found solar PV and onshore wind are the cheapest sources of new-build power generation for at least two-thirds of the global population - including the U.S. 

  • An International Renewable Energy Agency report showed renewable power is increasingly cheaper than any other new electricity capacity based on fossil fuels.

• Solar power is currently the cheapest electricity source in 16 states, and is expected to be the cheapest in all U.S. states by 2030. 

  • The cost of building new solar energy developments has dropped by 90% in the past 10 years.

  • In the last decade, U.S. solar has seen an average annual growth rate of 49% and the costs of solar installation have dropped by more than 70%. 

• The nation’s wind power industry has grown significantly in the last decade. From 2010 through 2020, the U.S. more than tripled its wind power generation capacity. 

  • Across the U.S., wind power accounted for 30% of utility-scale power capacity additions from 2009 through 2019.

  • The cost of wind energy has dropped by 70% over the last decade. 

• Inflation Reduction Act and high natural gas prices have created an “obvious economic advantage” for renewable energy, according to NextEra Ceo. 

• The IRA is projected to lead to over $1.7 trillion in combined public and private sector spending in the next ten years. 

  • Expanded tax credits will lower prices of U.S. wind and solar to less than $5 per megawatt-hour.

• Manufacturing production tax credits for wind, solar, and battery components built in the U.S. could have a value of up to 18 cents per watt, driving interest in domestic clean energy production.

Home Energy Efficiency

Appliances

• Setting energy efficiency standards for common household appliances has already saved the typical American household between $360 and $950 over the last three decades.. Updating standards to drive new innovation in energy savings could save households $100 another year and slash U.S. carbon emissions by about 50% by 2050.

• Updates to energy efficiency standards of 47 common consumer products could save the average American household more than $100 per year in 2030, increasing to $230 in 2035 and nearly $350 in 2050.

• National appliance standards save the typical U.S. household about $500 per year on utility bills. Through 2035, consumers and businesses will save more than $1.9 trillion thanks to standards already in place.

• In the U.S., consumers save $60 billion, or $320 per customer, annually thanks to appliance efficiency standards. 

• The Department of Energy’s Standards Program was set to deliver more than $1 trillion in utility bill savings by 2020 and more than $2 trillion in savings by 2030. 

  • In 2017, a typical household saved about $321 per year in energy costs as a result of standards. As older appliances are replaced by newer, more efficient models, households can expect to save over $529 annually by 2030.

Green Buildings & Weatherization

• Building without piping that connects new homes to the gas system can shave $4,000 to $5,000 off the cost of a new home, according to a new study by the Southwest Energy Efficiency Project. 

• The U.S. Department of Energy’s (DOE) Weatherization Assistance Program already saves participating households an average of $283 per year.

  • A 2015 study by the Oak Ridge National Laboratory found that the Weatherization Assistance Program delivered $1.40 in energy savings for every dollar invested. 

    • Accounting for health and safety benefits, each dollar in investments produces more than $4 in benefits.

  • The Department of Energy estimates that those who participate in the Weatherization Assistance Program see their energy costs cut by 35%.

  • Each home that receives WAP services gain an average of $14,148 in total health- and household-related benefits.  

• Current residential and commercial building energy codes are projected to save consumers $126 billion in cumulative energy costs between 2010 and 2040.

• Home weatherization can reduce the energy burdens of low-income households by about 25%.

Heat Pumps

• Heat pumps can reduce electricity use for heating and cooling, saving consumers thousands of dollars in annual energy costs. 

• According to the U.S. Department of Energy, efficient heat pumps could produce lifetime savings of $4,818. 

• The installation of heat pumps increases home values in the U.S. by an average of $10,400 to $17,000.

Clean Cars 

Fuel Economy Standards

• In 2021, the Biden administration published draft rules on fuel economy standards that are expected to save the average driver $900 over the life of the vehicle. 

• The new standards will save consumers between $210 billion and $420 billion in fuel costs through 2050.

• A 2022 analysis found that new vehicles are saving U.S. households on average about $630 to $840 a year at the pump due to better fuel economy over the past 15 years.

• Thanks to updated Corporaten Average Fuel Economy (CAFE) standards, by 2040 Americans will have saved billion of gallons of fuel and billions of dollars at the pump.

  • Since CAFE standards were first enacted in 1975, U.S. consumers have saved $5 trillion in fuel costs and prevented 14 billion metric tons of carbon from being released into the atmosphere.

Electric Vehicles - Fuel & Maintenance Savings

• A recent study conducted by the Massachusetts Institute of Technology found that over time, electric vehicles (EVs) are the most cost-effective vehicles accounting for purchase price, maintenance and fuel cost.

  • Lower maintenance costs and the lower costs of charging compared with gasoline prices tend to offset the higher upfront price of electric vehicles over time.

• A 2022 study found that most electric vehicles are cheaper up front than gas cars.

  • 85% of new-vehicle buyers finance their cars. In most states, financing and owning an EV is cheaper on a monthly basis than financing and owning an equivalent gasoline car.

• Despite regional variances in gas and electricity costs, an analysis from the Union of Concerned Scientists found that charging a vehicle was more cost effective than filling up at the pump across 50 major U.S. cities.

  • Fuel costs for EVs are cheaper than the cost of gas in the Southeast US.  

• The nation’s reliance on petroleum makes us vulnerable to price spikes and supply disruptions, as evidenced by the Colonial Pipeline hack earlier this year which triggered fuel shortages across the Southeast. EVs help reduce this threat because almost all U.S. electricity is produced from domestic sources.

• A 2020 study found that typical total ownership savings over the life of most EVs ranges from $6,000 to $10,000.

• EV fueling costs are 50 to 75% lower than for conventional vehicles, producing lifetime savings of about $12,000 for owners.

  • Overall, EV drivers, on average, save $770 a year compared to conventional combustion cars on fuel alone.

• An AAA analysis found EV owners see annual savings of $709 per year on fuel alone, with reduced maintenance bringing another $330 in savings.

• As of 2018, the typical household in the U.S. spends almost $1,330 per year on gas, which represents about 9% of household income for lower-income households.

• A 2018 study of EVs in Texas and California found the EV Total Cost of Ownership (TOC) was already lower than for a conventional vehicle, with battery electric vehicles (BEVs) lower than both plug-in hybrids (PHEVs) and hybrids.

• A 2021 analysis showed that the average cost of EV maintenance in the first three years is $77, significantly lower than the $228 average for gas vehicles. 

• EVs typically charge at night, when electricity is cheapest to generate. By balancing the demand for electricity, EVs decrease the average cost of electricity, thus reducing overall rates.

Electric Vehicles - Vehicle To Grid (V2G) Revenue

EV owners can also benefit financially by feeding electricity back into the grid through a reverse charging system known as “vehicle to grid” (V2G). 

• Initial studies estimate that electric vehicle owners can make between $300 and $500 per year through participating in V2G, with possible revenue of up to $5,000 through participating in “spinning reserves” generation.

• EV batteries are the most cost-efficient form of energy storage as they require no additional hardware or facility investments.

• EVs, whether powered by batteries, fuel cells, or gasoline hybrids, have the energy and power electronics capable of producing electricity to power our homes and offices.

• V2G can help strengthen the electric grid by using EVs to absorb excess electricity during periods of low demand, and discharge it during periods of high demand.

  • Peak hours of electricity demand typically occur in the early to mid-afternoon, when most commuter vehicles are sitting idle and can feed power back into the grid.

• V2G technology can offset the cost and environmental impact of energy which is bought from reserve power plants and increases electricity prices during peak hours.

• By 2027, the V2G market is projected to be worth some $17.43 billion.

Public Transit

• According to the American Public Transit Association, commuters who switch their daily commute from car to public transit can save $9,797 a year on average.

• A 2019 study found 25 of America’s largest metropolitan areas could save an average of 37% on fuel costs by electrifying their bus and light-duty vehicle fleets. 

Insurance

Ignoring Climate Change Means Increasing Insurance Premiums

• Extreme weather is causing billions of dollars in property damage with increasing frequency. 

• Climate change is already driving up home insurance and flood insurance rates. Experts expect that the effects of climate change will ultimately make home insurance and flood insurance unaffordable for many Americans.

• An insurance industry group estimated that flood insurance premiums will have to increase by seven times in parts of the country by 2050 to cover the increase in floods tied to climate change.

• In response, insurance companies are placing more maintenance responsibility onto homeowners and are rethinking which homes to cover, at what price. 

  • Some homeowners are already seeing their home insurance policies dropped due to risk from fire, flooding or other extreme weather disasters.

• In California, insurance companies lost a total of $20 billion in the wildfires of 2017 and 2018. The 2020 season alone cost insurers $13 billion. As a result, insurance companies now want to factor climate change into raising premiums for homeowners.

• Between 2005 and 2015, home insurance rates increased more than 50%. The National Association of Insurance Commissioners attributes the increase in part to natural disasters.

• 2020 saw steep increases in insurance claim numbers and payouts as at least one in every 30 buildings in the US was affected by severe weather events:

  • In 2020, claims filed from named storms with State Farm neared 163,000 and exceeded $1.9 billion in cost, up from 6,000 claims at a cost of approximately $26 million in 2019.

  • In 2020, property/casualty insurers paid out or reserved $7.7 billion on claims resulting from Hurricanes Laura, Delta and Zeta in Louisiana alone.

• Left unchecked, climate change will cost the U.S. up to 10.5% of the nation’s GDP by 2100.

Food

Ignoring Climate Change Means Paying More For Food

• A study from the International Food Policy Research Institute estimated that climate change will increase the prices of corn, wheat, and rice by at least two-thirds by 2050. 

• By August, 2021, coffee and sugar futures were up 50% over the previous year due to extreme weather impacts on farming around the world.

Healthcare

Ignoring Climate Change Means Higher Healthcare Costs

• Air pollution alone from fossil fuels costs the United States between $430 billion and $870 billion every year in healthcare costs and lost working income due to poor health.