Home heating costs to increase this winter; here's how much
FILE-A close-up of a hand adjusting the heat on a thermostat. (Photo by Smith Collection/Gado/Getty Images)
With the temperatures dropping significantly during the winter, more people will have the heat running in their homes, which could result in rising heat costs for consumers.
In an August 2024 Energy Hardship report released by the National Energy Assistance Directors Association (NEADA), the policy organization says home heating costs in the nation are projected to spike 10.5%, on average, in part based on colder temperatures forecast for the Northeast and Midwest.
People who heat their homes using electricity will feel serious financial hardships with their costs projected to skyrocket 13.6% to $1,208 during the winter, per the NEADA.
RELATED: Energy costs: These are the states paying the most, least
The report also noted that heating costs tend to fluctuate in the winter. For instance, residents that use propane to heat their home will see their heating costs soar 7.3% to $1,442 in the winter, while residents who use natural gas are expected to experience a 7.2% increase to $644 in their home heating costs this winter.
These inflated costs are resulting in a rising number of people nationwide struggling to pay their utility bills.
According to the NEADA report, roughly 21 million households owed $13.5 billion on their electric bills in June 2024, an increase from 20.4 million who owed $12.5 billion in 2023.
RELATED: Home heating prices are down a little: Here's how much you'll spend this winter
A reduction in natural gas prices has lowered the amount households owed to $6.1 billion in June, compared to $7.4 billion a year earlier. However, 17.4 million households were in debt, up from 15.2 million, per the NEADA report.
Separately, soaring heating costs may lead to utility shut-offs, which are projected to increase by 300,000 households, to 3.5 million, by the end of 2024, the NEADA noted.
One factor causing financial challenges for many Americans paying their utility bills is the lack of available federal assistance.
Congress cut $2 billion from the Low Income Home Energy Assistance Program (LIHEAP) budget, lowering federal funding from $6.1 billion to $4.1 billion. The impact of the program’s cuts is severe and is affecting energy affordability across the U.S., with roughly 80% of LIHEAP funds used for heating costs.
Data gathered for the NEADA report includes stats from the US Bureau of Labor Statistics, Health and Human Services, Energy Information Administration, and Census Bureau, and utilities, state agencies and other data sources.