Rising temperatures are driving up home cooling expenses and endangering certain people.

• Unrelenting summer heat has made it challenging for households to stay cool.
• That trend of higher temperatures is only expected to continue in coming years.
• Experts suggest that policies should be implemented to assist families who cannot afford to pay for cooling expenses.

On July 22, the earth recorded its hottest day ever during the peak of summer heat.

The global average temperature was nearly 63 degrees Fahrenheit and was surrounded by days with similar high temperatures.

Across the U.S. this summer, many areas have experienced unrelenting heat waves.

Research shows that many Americans must choose between spending more on cooling costs or enduring the heat to save money.

Climate change is affecting the financial stability of individuals and communities, particularly in Miami where rising prices are impacting longtime residents. To combat this issue, individuals can purchase renewable energy from their electric utility.

The National Energy Assistance Directors Association and the Center for Energy, Poverty and Climate predict that the average cost of home cooling during June through September will be $719 this year, an increase of nearly 8% from $661 in 2023.

The rise in home cooling costs over the past decade is due to the increased electricity demand resulting from higher temperatures.

By the end of the century, the US is projected to have at least 50 days per year with maximum temperatures above 95 degrees, according to new research from the JPMorgan Chase Institute.

"JPMorgan Chase's head of research, policy and insights for corporate responsibility, Heather Higginbottom, stated that the increase in high heat days and the effects of climate change are adding to the expenses that families and households must manage."

Some must 'just go without cooling their homes'

Low-income households may be poised to suffer most amid rising temperatures.

High-income households spend more on air conditioning during hot days than low-income households, according to JPMorgan Chase Institute's analysis of anonymized firm data.

The average family in Houston experiences less than $1 in foregone spending due to an extra 95-degree day, according to research by the JPMorgan Chase Institute.

In Los Angeles and Chicago, the research found no statistically significant effect.

According to Higginbottom, lower-income households will spend less on air conditioning than middle- or higher-income households on high heat days, and they will essentially go without cooling their homes as effectively for financial reasons.

According to Mark Wolfe, executive director of the National Energy Assistance Directors Association, lower-income families are more affected by rising energy prices because the increases represent a larger portion of their budgets.

A 0.1% increase in energy bills for a high-income family may not significantly affect their lives, according to Wolfe.

The share of healthcare costs in low-income families' budgets may increase from 8.3% to 11%, significantly reducing their discretionary income, according to him.

Young children, elderly, and disabled individuals are more likely to be part of low-income families, which increases their vulnerability to the negative health effects of high heat, according to Wolfe.

'There's no inexpensive solution'

As temperatures rise faster than expected, it is a race against time for policies to help vulnerable populations, he said.

Extended periods of very high temperatures are occurring, and we are not adequately prepared for it, according to Wolfe.

Two policy options, as suggested by Wolfe, include providing immediate financial assistance for low-income individuals to cover their cooling expenses and implementing long-term initiatives to retrofit homes with energy-efficient and affordable cooling systems.

If families can't pay their bills, they may face shut-offs.

Increasing the thermostat temperature from 72 to 78 degrees can lower cooling expenses, as per experts. Additionally, adding insulation can lead to cost savings.

Wolfe stated that this summer serves as a "wake-up call" that significant changes must occur.

"Adapting this will be costly," Wolfe stated. "There's no affordable option."