The Rising Costs of Energy: Will It Ever Stop?

1//1/2025

Transition Utilities to a Nonprofit Model and Keeping Solar for-profit

The Rising Costs of Energy: Will It Ever Stop?

Energy is essential to modern life. From powering our homes to fueling innovation, electricity and solar energy form the backbone of our daily routines. But as costs continue to climb year after year, the question must be asked: Will this ever stop? The unfortunate reality is that the answer is likely no—not under the current system. The real question we face is: Are we going to accept this and continue paying both rising electricity and solar costs, or are we ready to demand change?

The Escalating Costs of Electricity

For decades, the cost of electricity has been steadily rising, burdening families and businesses alike. According to the U.S. Energy Information Administration (EIA), the average retail price of electricity for residential customers increased by nearly 15% from 2010 to 2020, with an even sharper rise in recent years. These increases are driven by a range of factors, including aging infrastructure, high operational costs, and corporate profit motives.

Utility companies argue that these hikes are necessary to maintain the grid and invest in renewable energy. However, a 2022 report from Utility Dive revealed that major utility companies allocated billions of dollars toward executive compensation and shareholder dividends, with some executives earning over $10 million annually, raising concerns about whether these funds are truly being reinvested into grid improvements. However, reports indicate that much of the revenue from rate increases goes toward executive bonuses and shareholder dividends rather than tangible improvements for consumers. The question then arises: How long can we sustain this cycle of unchecked increases?

Solar Energy: A Double-Edged Sword

Many turned to solar energy as an alternative, believing it to be the solution to high utility bills and climate concerns. While solar has undeniable environmental benefits, the costs associated with installation, maintenance, and financing have become a significant financial burden for many households.

Solar companies often advertise long-term savings, but these come with strings attached: steep upfront costs, complex financing agreements, and long-term contracts. For instance, a 2023 investigative report by Consumer Reports highlighted several cases where homeowners ended up paying far more than expected due to hidden fees and escalating loan terms. One homeowner in California reported signing a 20-year solar lease only to discover annual escalators that increased their payments by 3% each year, making the promised savings elusive. In many cases, homeowners find themselves locked into agreements that fail to deliver the promised financial relief. And when the cost of additional solar panels is required to offset utility rate hikes, it becomes clear: Solar, too, has become a profit-driven industry.

Sunrun Solar: A Beacon of Progress

In the midst of rising energy costs and challenges, Sunrun has emerged as a beacon of innovation and progress. Their groundbreaking advancements in community solar projects and virtual power plant (VPP) solutions exemplify what moving forward truly looks like. Sunrun’s shared solar energy initiatives allow multiple households to benefit from a single solar installation, distributing energy savings across participants and making solar power more accessible to those who cannot afford individual installations or lack suitable rooftops.

Furthermore, their VPP solutions integrate rooftop solar systems with battery storage, enabling neighborhoods to function as decentralized power hubs. This innovation not only enhances grid resilience but also empowers communities to lower energy costs while reducing strain on traditional power grids. These accomplishments highlight how for-profit solar companies can drive meaningful change while complementing the push for nonprofit utility models.

The Harsh Reality

We are now in a position where many Americans pay both an electricity bill and a solar contract—effectively double-paying for the same basic need: energy. This dual payment system has created a financial chokehold on households, leaving millions wondering if relief is even possible.

The Case for Change: A Nonprofit Model for Utilities

The time has come to challenge the status quo. Transitioning utilities to a nonprofit model could provide the much-needed relief that Americans deserve. For example, the Sacramento Municipal Utility District (SMUD) operates as a nonprofit utility, consistently offering lower rates compared to for-profit counterparts while reinvesting revenues into infrastructure and renewable energy projects. Practical steps to transition include creating public utility boards, securing initial funding through municipal bonds, and ensuring transparent governance to build public trust. By removing the profit motive, a nonprofit utility model could prioritize affordability, reinvest revenues into infrastructure, and stabilize rates for consumers. This shift would not eliminate solar energy as a for-profit industry but would instead create a fairer playing field where consumers are no longer at the mercy of both.

Asking the Hard Questions

As citizens, we must ask ourselves:

- Are we willing to accept rising costs indefinitely, knowing they will likely never stabilize under the current system?

- Are we okay with paying both a utility bill and a solar contract, essentially funding two profit-driven industries?

- Should energy be treated as a basic right or continue as a corporate playground for profit?

The answer to these questions will shape the future of energy in America. The status quo is unsustainable, and it’s time to demand a system that prioritizes people over profit.

A Call to Action

The path forward requires bold leadership and public demand for change. Readers can take specific actions such as contacting policymakers to advocate for nonprofit utilities, supporting local initiatives aimed at energy reform, and spreading awareness about the financial burden of current energy costs. Collective action can pave the way for meaningful change. By transitioning utilities to a nonprofit model and holding solar companies accountable for fair practices, we can ensure that energy remains accessible, affordable, and sustainable for all. Let’s not resign ourselves to the inevitability of rising costs. Instead, let’s work together to create a system that puts people first.

Energy is not a luxury; it’s a necessity. It’s time to treat it that way.

public@vincentcordova.com

Vincent Cordova