The effects of climate change are pretty obvious to anyone living in the US this summer, which has seen more than its share of intense heat and weather so far.

But climate change -- which is largely driven by the use of fossil fuels for energy -- is probably having an impact on your wallet, too. Even though climate change is largely driven by the choices of big businesses and large countries, we as individuals are bearing the cost.

One way that’s showing up is on your monthly energy bills. Rates have risen sharply over the last few years, and extreme weather is probably causing you to use more energy to heat and cool your home. In other words, the cost of energy, and how much you’re using, is increasing.

“There’s upward pressure on both of these things because of climate change,” said Andrew Meyer, CEO of Arbor, a tech company that helps customers manage their energy bills.

Here’s a closer look at why climate change is ratcheting up your utility costs.

Most Americans think climate change will cost them

A lot of people already know this intuitively. 

In a recent CNET survey of American adults, 60% of respondents said they believe climate change is increasing how much they pay for home energy. Only 13% disagreed, with the rest being unsure.

The finding was consistent across geography and generations. No matter where the survey respondents lived, or how old they were, a solid 60% see climate change as a factor in their rising utility bills.

And they’re not wrong. Experts say there are several ways climate change is contributing to higher bills -- but thankfully, there are also some ways to mitigate those costs.

How climate change affects energy bills

The first way this happens is pretty straightforward: Climate change is causing higher temperatures, which means Americans are using more energy to run air conditioners in the summer.

“Heat has a direct impact on usage, which is one of the main inputs to your cost,” Meyer said.

But it’s not just that summer temperatures in July or August are a bit higher. It’s also that the “air conditioning season,” so to speak, is getting longer. Where Americans might have only used AC from June to August, they might now be using it from May to September. They’re using AC for more days of the year and more hours per day.

“That is [where] Americans are really seeing a difference,” said Grant Goodrich, executive director of the Great Lakes Energy Institute at Case Western Reserve University.

But this isn’t the only factor at play. While Americans are using more energy to cool their homes, that energy is also getting more expensive, partly due to climate change. Meyer explains that higher demand for energy -- which is happening not only due to more AC use but also because of the electrification of everything -- puts upward pressure on rates, in a simple supply-and-demand equation. 

Plus, as utilities transition away from fossil fuel generation plants, they’re spending more money to build out wind and solar power. “There goes a lot of our cheap, baseload power” in the form of fossil fuels, said Gilbert Michaud, an assistant professor of environmental policy at the School of Environmental Sustainability at Loyola University Chicago.

While this has obvious environmental benefits, it can translate to higher energy rates. “Utilities are really good about passing every single [cost] to consumers,” Michaud said. (Worth noting: Many utilities have also been known to funnel lots of customer dollars toward lobbying against climate regulations.)

Goodrich, however, is a little more cautious about drawing a direct line between climate change and increasing utility rates. He said it’s difficult to generalize, and the landscape looks different in each state. “It’s not a very clear picture,” he said.

Other ways climate change affects your bills

If increasing energy bills weren’t enough, there are more financial impacts from climate change.

Take, for example, the increasing frequency of extreme storms. These can cause extensive damage to power systems (again, increasing costs for utilities who need to repair them) and lead to more power outages.

Those outages can have a “severe” negative impact on local businesses and the economy, Meyer said.

You might also see climate change costs showing up on your home insurance bill. Some insurance companies now completely decline to offer coverage in high-risk states like California or Florida due to weather and natural disasters exacerbated by climate change, like wildfires and hurricanes.

And even if you can find insurance in those states, rates are up to compensate for the increased risk of extreme weather events.

Ways to keep your energy bills in check

There are some ways you can stem the tide and reduce your home energy costs in the face of climate change.

• “The first item for any home to look at is your insulation,” said Goodrich. A poorly insulated home is a drain for energy. Insulation is relatively cheap and can really help reduce your heating and cooling costs.
• Windows and doors are a good place to start, too. Make sure everything is sealed up to reduce drafts, and consider replacing especially old doors or windows, Goodrich advises. Even something as simple as shades on south-facing windows can keep your home cooler and reduce AC usage.
• Smart thermostats can also help you optimize your HVAC system. App-controlled models allow you to adjust the thermostat when you’re not home and have the space back to your preferred temp when you return.
• If you’re in a “deregulated” state with retail energy choice, you can choose an energy supplier with lower rates. “You can lower your costs by just being smart and being on the best possible rate for you,” said Meyer, whose company helps customers switch energy providers in such states. 
• Installing solar panels is a bigger investment, but it can take a big chunk out of your energy bills. Federal and state financial incentives available right now can make this kind of project surprisingly affordable. “You may find that it’s very, very favorable,” Goodrich said.