by Jeffrey McKinney
April 28, 2025
Less income and energy-efficiency issues can make paying utility bills more difficult for Black Americans,
Fresh data shows nearly 60% of Black Americans are overpowered by the rising cost of utility bills. And with summer coming soon, 47% of them fear what their electric bills will be during that season.
The discoveries illustrate how Black people are often hit harder by paying for utilities than other racial groups. The data is tied to the American Home Shield (AHS) report recently provided to BLACK ENTERPRISE. The research was broken down to show how Blacks are often hit harder by paying for utilities than other racial groups.
More specifically, the analysis showed some 59% of Blacks are overwhelmed by utility bills versus 54% for those overall. Forty-seven percent of Black respondents are worried about affording summer electric bills, compared to 42% of those questioned. Just over 1,000 U.S. renters and homeowners were asked late last year how they are grappling with utility bills and how they are managing the payments. In total, 258 respondents, or approximately 26%, identified as Black Americans.
The survey revealed that the total average monthly utility bill for Black Americans, encompassing electricity, internet, oil, water, and gas, was $653 as of New Year’s Day 2025. That was $180 higher than the national average for all races, which is $473. All told, nearly 90 percent of those surveyed reported their utilities have risen in the last year.
The bottom line Is That Rising utility costs are cited as a significant challenge and a greater burden for many Black individuals, primarily due to lower incomes, energy efficiency issues, and the location of their homes, among other factors.
Simultaneously, President Donald Trump’s 25% tariffs on Canada and Mexico are reportedly likely to exacerbate the situation. For instance, Canadian electricity, valued at billions of dollars, might be impacted as the tax levies on imports in those countries could boost energy costs.
The tariffs are projected to markedly inflate energy bills in the nation’s Midwestern states, many of which have large Black populations.
According to a report, 52 million Americans struggle to pay their energy bills, stated Isaac Sevier, executive director of Public Grids.
He said, Trump’s move will make that deep affordability crisis even worse.”
The AHS survey divulged that 35% of Blacks are struggling to pay bills. And 68% of Blacks don’t comprehend why rate hikes occur versus 61% for the whole. Still, Blacks are taking steps to cut bills, as 33% of them are installing solar panels, almost double the rate of those overall. And 82% of Blacks back nationalizing the electric grid to stabilize prices.
Additionally, you can make strategic moves to help protect yourself from rising utility costs. Here are some tips from American Home Shield, one of the nation’s largest home warranty firms:
Above all, be sure to examine your bills rigorously: While some 63% of Americans now do that, barely over 25% have disputed an electric bill. Out of that, around ended up owing less than the original bill they received, resulting in a saving of $433 on average from mistaken charges. Be mindful that electricity typically accounts for the highest portion of utility bills.
Be more energy efficient: A smart way to reduce costs is to manage heating and cooling better. They account for nearly half of your power bill. One suggestion: Possibly save up to 10% on those costs by adjusting your thermostat by around 7-10°F for eight hours a day.
Switch to LED lighting: If you haven’t already, consider switching to LED bulbs from traditional incandescent ones. The reason: Those bulbs use around six times the power of LEDs. Those costs could increase significantly as most households depend on overhead lights and lamps at night.
Get rid of old appliances: It’s time to discard appliances that are more than a decade old. With technology ever changing, modern appliances and gadgets operate more efficiently. Be aware that older electronics may use up to 66% more power than newer models.
Pay attention to hidden costs: Unplug appliances and electronics, such as microwaves, TVs, and desktop computers, that use energy when left plugged into an outlet. Those fees can add up.
Adjust your bathing routines: Taking a long, hot bath can be soothing, but it can also be costly. The use of hot water accounts for a significant portion of a home’s energy consumption. If possible, replace your showerhead with a low-flow unit to help reduce water usage and pressure.
Wash clothes more correctly. Doing this in cold or warm water is recommended. Switching your loads from hot to warm water can shave your energy use by half.
Check out other ways to cut costs: This site includes tips on everything from making your home more energy efficient to how using that approach could help yield average yearly savings ranging from $105 to $627 with minimal effort.
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