According to a recent study done by Wallet Hub, a financial advice website, Californians pay less in out of pocket costs for the energy that we consume. While we are used to higher costs here on the west coast compared to other areas of the nation, in particular when it comes to the price of gasoline, there are some significant ways in which it seems we actually save money. There are different key factors involved in coming to this conclusion, which Wallet Hub explains in their study. To come up with a ranking for each state and Washington D.C., a specific methodology was used to find averages in monthly costs. Eight key metrics were used examining the prices and consumption of four types of energy: electricity, home heating oil, motor fuel and natural gas. The average monthly consumption and average retail price of each type of energy was multiplied together, then each result by energy type was added together to come up with an average monthly bill.
There are some other factors to keep in mind when looking at a study such as this. Climate is a big one. As we live in a temperate climate in Northern California, we will use less energy in our homes since we don’t have to have our heaters or air conditioners on as much as other states such as those in the south or back east. Our climate is one of the reasons so many people have moved here, let’s face it, having mild weather year round is a big plus to living comfortably. According to the latest published information from the US Energy Information Administration, up to 14% of homes in California don’t even use heat. There is also the extent to which a type of energy is used in a state. Californians use natural gas to heat their homes much more than other types of fuel, like oil. For states that use oil heat more, their average cost will be higher.
According to the Wallet Hub study, California is ranked number 9 in the nation for lowest average monthly cost in energy. We spend an average of $280 per month on energy. We have the 6th lowest cost for electricity, an average of $96 per month, and are ranked 22nd for the cost of Natural Gas amongst the nation. Our oil heating cost is low as well, putting us at the 12th lowest in the country. It is of course motor fuel where we pay more, ranking at 45th compared to other states. But when you combine these all together to form a general picture, because we also use less motor fuel compared to other states, like North Dakota and Wyoming for example, the cost overall balances out. In fact, we are ranked number 3 for the least consumption of electricity for housing units, again a testimony to our moderate climate.
When it comes to energy consumption and the costs of our energy overall, here in California, we are on the winning side when it comes to how much comes out of our wallets on average. When you are ready to buy or sell a home, we at Haylen Group are here to help you with all of your real estate needs! If you are unsure what your options are, call Helen Chong at (408) 800-LIST or email at Helen@HaylenGroup.com. You can also visit us at our website for available listings and additional information.