Latest news with #AmericanHouseholds
The Guardian
2 days ago
- Business
- The Guardian
‘Going to increase prices on everybody': US energy department workers sound alarm over cuts
Workers at the US Department of Energy say cuts and deregulations are undermining the ability for the department to function and will result in significant energy cost hikes for consumers. Trump's 'big, beautiful bill' will raise energy costs for American households by as much as 7% in 2035 due to the repeal of energy tax credits and could put significant investment and energy innovation at risk, according to a report by the Rhodium Group. The non-partisan think tank Energy Innovation calculated the average US household will see its utility bills rise by over $230 by 2035 as a result of cuts to renewable energy investments. The rises are being driven in part by cuts to the agency. Trump has proposed cutting the department's budget by $19.3bn. More than 3,500 employees at the Department of Energy have reportedly taken delayed resignation buyout offers, though the Department of Energy declined to provide final numbers or an estimate on the departures. Some 43% of its workforce of nearly 16,000 employees was deemed 'non-essential', not including 555 probationary employees that were fired earlier this year. The US Department of Energy announced on 12 May plans to eliminate 47 regulations, comprising mostly of energy efficiency standards for appliances, claiming the cuts would save nearly $11bn, but did not provide any analysis or data for how it came to that savings estimate. The Department of Energy estimated in December 2024 that stronger energy efficiency appliance standards would save consumers about $1trn over the next three decades. An analysis by the Appliance Standards Awareness Project found the energy efficiency cuts would add $54bn in utility energy costs. 'The impact of a lot of what I was working on in the energy efficiency and electrification space is aimed at saving folks money. The business case around energy efficiency has been made for the past 30 years. Reducing the cost of energy, any of those fixed costs for folks, can really be life changing, freeing up their budget for other necessities,' said a US Department of Energy employee who requested to remain anonymous for fear of retaliation as they have accepted a resignation buyout offer. 'Changing that has so many effects down the line,' they added. 'We already know things are getting more expensive. Budgets are getting tighter for many households in the state, and also territories and tribes. The work that I did was not only with states, but also with us, territories and tribes as well, and a lot of these communities, every dollar matters, and that's not unique to red or blue areas or anything like that.' Another employee at the US Department of Energy said morale at the department sank after attacks on civil servants by the so-called 'department of government efficiency' (Doge) and the chaos and uncertainty of the firings of probationary employees, contractors, and employees resigning, leaving a drain on resources, talent and knowledge throughout the agency. 'Appointees came in with a clear agenda to dismantle programs and shrink staff,' they said. 'It is very clear they don't care about the work or the workforce. Many were looking to score points with Doge and made quick cuts without concerns for long-term damage, such as the chaos and lost knowledge caused by the delayed resignation program.' A former senior Department of Energy official who requested to remain anonymous explained the totality of the cuts to personnel, grants, regulations, and budget for the department are 'going to increase prices on everybody'. 'As much as the election was on affordability, there's a reason that Trump is doing incredibly poorly on affordability and inflation. I think what's happening at the Department of Energy is just such a great example of a whole variety of efforts that near-term, medium-term and longer-term are going to raise prices on consumers, on companies, and make us less competitive internationally,' they said. 'The efficiency regulations end up saving consumers an awful lot of money, certainly as a percentage of their budget. I don't think there is any truth whatsoever, if you talk to anyone who's ever done analysis and rigor on this, that somehow not doing these regulations is actually saving money. It's the exact opposite if you think of the whole system.' They also criticized the fact that many of these actions will result in lawsuits and legal changes, and the negative impacts of research and development cuts to renewable energy. They cited the demand for energy to power emerging AI and data centers and energy consumption is expected to rise significantly and wind, solar, and battery energy storage are relatively quick and cheap to construct. About 96% of added US energy capacity to the grid in 2024 was from carbon-free sources. 'If you stop any research for next generation solar or battery technology, or wind or geothermal or other pieces, what you're effectively doing is compromising a huge range of technology that has the potential to reduce costs, and of course, has the potential to reduce greenhouse gas emissions. But even if you don't care about that, these are the technologies that could reduce costs for consumers,' they added. 'The chaos with the tariffs, with the regulations, with the not fully thought through and analyzed nature of this is just causing a lot of confusion, a lot of incoherence, a lot of inconsistency and uncertainty. And that's just not good for businesses, let alone consumers.' A spokesperson for the US Department of Energy refuted claims of costs due to eliminating regulations. 'President Trump and Secretary Wright pledged to restore commonsense to our regulatory policies and lower costs for American consumers – that is exactly what these deregulatory actions do. To argue consumers benefit from being forced to purchase more-expensive, time-intensive products that are often less energy efficient because they don't do the job right the first time is total nonsense,' they said in an email. 'DOE's approach recognizes that consumer choice and market-driven innovation, not bureaucratic mandates, lead to better-performing and more affordable consumer products. DOE's deregulatory actions empower consumers to choose products that meet their needs and budgets, while also supporting American manufacturers.'
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
American Consumers Are Still Gloomy on the Economy
American households still felt gloomy about the economy in May, a month when changing tariff policies made it difficult to forecast prices. The final May reading for the University of Michigan's closely watched index of consumer sentiment was 52.2, unchanged from the previous month.
Yahoo
17-05-2025
- Business
- Yahoo
Savings tips: How to calculate your ideal emergency fund
Most American households aren't saving enough for emergencies, according to a study from Investopedia. Investopedia editor in chief Caleb Silver breaks down why families should aim to have an emergency fund of $35,000 and what costs that figure actually covers. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
16-05-2025
- Business
- Wall Street Journal
Early Read on Consumer Sentiment Falls to Second Lowest on Record
American households in May felt worse about the economy than they did in April, with sweeping tariffs raising the prospect of higher prices. The University of Michigan said Friday its preliminary index of consumer sentiment for May was 50.8, down about 3% from a final reading of 52.2 in April.
CNET
13-05-2025
- Business
- CNET
Best Ways to Save on Your Next Water Heater Upgrade
Dealing with high utility bills? Water heating may be one of the major culprits. According to the US Department of Energy, it is one of the largest residential energy uses and accounts for nearly one-fifth of total electricity costs. This comes out to an average expense of $400 to $600 per year for American households. That may not seem like a lot on paper, but it does add up. It doesn't help that a recent CNET survey found that 78% of Americans are stressed about their energy bills. It's not hard to see why. Not only has the cost of living increased, but the job market has gotten tougher and tariff-related price hikes have sparked spending concerns for many people. With everything adding up, it makes you wonder how you can save money on water heating. The quick fixes are running less hot water and setting the temperature of your water heater a bit lower. However, finding the right balance between conserving your utilities and being comfortable can be difficult. Another option is upgrading your water heater, especially if your current one is on its last legs. Upgrading a water heater can be a significant expense, with costs discussed on Reddit ranging from $1,000 to more than $3,000 and even more for larger or tankless models. However, there are strategies to save money on the upgrade. Ensure that the one you pick meets the latest DOE standards -- it could save you more than $100 per year. Some models will even produce enough savings to pay for themselves in just a few years. Also, seize the significant up-front savings from federal, state and local tax credits. This is not only a smart choice but also an eco-friendly one. Read on to let us help you maximize your savings on a new, energy-efficient water heater. Types of water heaters There are many types of water heaters that you will encounter when choosing an option for your home. It's best to understand the potential benefits and challenges that each provides to determine which option is best for the needs of your household. Traditional tank water heaters There are two primary types of standard tank water heaters, which vary based on the type of energy source that is available. Gas tank water heaters use natural gas or propane to heat water, which is stored in a large tank. Electric tank water heaters can heat water using electric resistance coils. These models are generally easier to install and maintain but may have higher operating costs compared with gas. Tankless water heaters Tankless water heaters, also known as on-demand water heaters, can heat water directly without a storage tank. They provide a continuous supply of hot water, which can be more energy-efficient because they only heat water when needed. Matt Kunz, president of Mr. Rooter Plumbing, said choosing between a tank and tankless heater is the most common decision that homeowners have to make. "A tank water heater stores and heats large amounts of water and is suitable for homes that have a high demand for hot water. A tankless heater is more energy efficient as it heats water on demand. They are also more space efficient but are typically more expensive upfront," he said. Heat pump water heaters A heat pump water heater uses electricity to move heat from the air or ground to heat water. You can think of them as operating like a refrigerator in reverse. While a refrigerator removes heat from inside and releases it into the air, a heat pump water heater pulls heat either from the air (air-source heat pumps) or the ground (geothermal heat pumps) and uses it to heat your water. This method makes them highly efficient and they can reduce energy costs significantly, especially in moderate climates. Solar water heaters There are other water heaters that can be even more energy efficient, though, such as solar water heaters. These heaters use solar panels to capture sunlight and convert it into energy for heat, which is then transferred to the water. These systems can provide substantial savings on energy bills, particularly in sunny regions, but typically carry bigger price tags for purchase and have unique maintenance needs. Point-of-use water heaters Point-of-use water heater systems are small units that are typically installed close to the point of use, such as sinks or showers. They provide hot water directly where it is being used, heating the water quickly. Most of the time, these systems are used to supplement larger systems. Federal tax credit for water heaters As you are searching for the right water heater for your home, keep in mind the incentive programs that are available for your purchase. "There are federal and local incentives and credits available to homeowners when purchasing a new water heater," Kunz said. "Every program and credit are based on different homeowners' needs, so it's important to do your homework to find the incentive that best fits your needs to see if you qualify." There are two primary federal tax credits available that help to cover the cost of your upgrade: The Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit. Energy Efficient Home Improvement Credit The Energy Efficient Home Improvement Credit is part of the Inflation Reduction Act of 2022 and incentivizes homeowners to invest in energy-efficient upgrades, including certain water heaters. Eligible systems can include electric heat pump water heaters, gas water heaters with a certain energy efficiency rating and more. Homeowners can claim a tax credit of up to 30% of the cost, with a maximum credit limit of $1,200 per year, and up to $2,000 per year for qualified heat pumps. Qualifying heat pumps must meet or exceed the Consortium for Energy Efficiency's highest efficiency tier. This credit helps offset the initial costs of purchasing and installing qualified energy-efficient water heaters, making it an attractive option for those looking to enhance their home's efficiency. Credits are claimable for home improvements made through 2032. Residential Clean Energy Credit The Residential Clean Energy Credit specifically targets renewable energy technologies, including geothermal heat pumps and solar water heaters. Homeowners can receive a tax credit of 30% of the installation cost for qualified geothermal systems through 2032, with descending credit rates still available in the years after. Unlike the Energy Efficient Home Improvement Credit, this credit does not have a maximum limit, allowing homeowners to potentially benefit significantly based on the total installation costs. Other water heater rebates and incentives In addition to federal tax credits, there may be other incentives available to you based on where you live. To find information about state, municipal or utility company-offered incentives for energy-efficient water heaters, homeowners can start by visiting government websites, particularly those of state energy offices or departments of energy, which typically provide information on available incentives and programs. Check your utility company's website as well for any rebates and incentives offered for energy-efficient appliances. Other rebates authorized and funded by the IRA are implemented by individual states. To see if your state has opened up applications for rebates, check out the Energy Savings Hub from the DOE. You can also sift through online incentive databases such as the Database of State Incentives for Renewables and Efficiency, which compiles incentives at state and local levels and allows you to search by location and technology. Note that the database may not be comprehensive and programs listed may have changed but it is a great starting point.
