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.

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