Finance
This is the reason why home heating costs are rising: How much more than last year will it cost to heat your house?
This winter is expected to be particularly costly when it comes to heating US homes. Here’s why, and how much it will cost.
It’s the time of year when many like to spend the money they’ve saved throughout the year on Christmas present for loved ones, fun activities with friends and family, or trips during their time off. This year, however, Americans will have to allocate more of their hard-earned cash to heating their homes.
A report from the National Energy Assistance Directors Association (NEADA) states average spending on home heating this winter will rise to $941 from $866 last year, an increase of 8.7%. That’s now more than average spending on Christmas presents ($902 per person, according to the National Retail Federation).
Homes that are heated by electricity will be especially badly affected, with the NEADA estimating a jump from $1,040 (November 2023 to March 2024) to $1,189 (November 2024 to March 2025). That’s a rise of more than 14%.
There will also be higher costs for those using natural gas ($634, up 3%) and propane ($1,231, up 4.4%), although the average spending on heating oil is expected to drop ($1,518, down 2.7%).
The reasons heating your home is more expensive this year
Speaking to CBS MoneyWatch, NEADA Executive Director Mark Wolfe revealed the reasons for the increase were two-fold: “It’s colder, and the cost of electricity is up as the grid is rebuilt. So we’re seeing both higher prices and greater usage”.
Lower temperatures are forecast this year for the Northeast and Midwest states in particular, while November was a colder month than usual, leading to additional heating costs. The money spent on updating and maintaining the electric grid has been higher this year than in the past, contributing further to those extra dollars.
The rising costs are part of a double whammy for most Americans, who had to deal with an abnormally hot summer, which also led to more money being spent on cooling costs.
How to save money on your energy bill this winter
To limit the financial damage, Wolfe suggests people have their thermostats serviced and tuned up as soon as possible, before the season’s coldest temperatures hit. Additionally, closing the furnace flue and manually turning down the heat at night could help you save up to 10% on your energy bill, he claims.
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