Higher home cooling costs due to record breaking summer heat waves

Extreme Investor Network: The High Cost of Cooling: How Rising Temperatures Impact Your Wallet

As temperatures continue to soar, the global average temperature hit a new record on July 22, reaching almost 63 degrees Fahrenheit. With many areas across the U.S. experiencing relentless heat waves, the tradeoff between paying higher cooling costs or enduring the heat to save money has become a tough reality for many Americans.

According to the National Energy Assistance Directors Association and the Center for Energy, Poverty and Climate, home cooling costs are projected to average $719 from June through September this year, up nearly 8% from the same period in 2023. This increase in costs is attributed to higher temperatures that require more electricity, a trend that is expected to worsen in the coming years.

Related:  Important Considerations Before Making Mega Backdoor Roth Conversions

Low-income households are particularly vulnerable to the impacts of rising temperatures as they tend to spend significantly less on air conditioning than higher-income households on hot days to save money. This can result in them going without cooling their homes effectively, putting them at a higher risk during heatwaves.

While higher energy bills may have limited effects on most households’ spending, they can take up a significant portion of low-income families’ budgets, restricting their discretionary income. This poses a health risk, especially for households with young children, elderly, or disabled individuals.

To address these challenges, policy approaches such as immediate assistance for cooling bills and long-term efforts to retrofit housing for low-income families with affordable and modern cooling systems can help mitigate the impact of rising temperatures. Simple measures like adjusting the thermostat or installing insulation can also result in savings on cooling costs.

Related:  Costco Wholesale Falls Short of Expected Revenue in Latest Quarter Due to Sluggish Spending

As we continue to see more high heat days and the effects of climate change, it is crucial for families to be prepared for the increasing costs associated with staying cool during extreme temperatures. This summer serves as a wake-up call that larger changes need to happen to adapt to the evolving climate, even if it comes at a price.

Source link