What if someone told you that you could become your own energy source and mini–power plant? What if you could rid of your electric bill and actually send power back to the grid and get credit for it? What if there are federal and state level incentives to do it? Would that be of interest to you? Does independence from traditional and volatile energy sound enticing? People all over the U.S. are making those choices a reality today. As the technologies in solar energy continue to mature, the price of its electricity has become more competitive against traditional, fossil fuel electricity. Th e mind–set of solar energy as a "futuristic" concept is quickly diminishing and has found its place in the present. Solar electricity offers a true solution to today's rising energy problem, with three significant benefi ts: 1. Fixed, aff ordable electricity against rising utility prices. 2. Positive environment impact against climate change. 3. Positive social acceptance of renewable energy.
LET'S COMPARE There can be as many as six components that make up our electricity bills. Here is a typical break down of an electricity bill:
- Service Charge. This is the monthly cost for doing business.
- Energy cost per kilowatt hour. This is the actual price the utility is charging for the energy you consume (usually by the process of burning coal or natural gas).
- Fuel adjustment charge. Guess what happens when the price at the pump goes up? You got it! Your electric bill goes up too.
- Regulatory charge. Sometimes called "miscellaneous fee."
- Peak capacity charge. During the summer, the utility can charge more because more energy is demanded in the hot months.
- State and local sales taxes.
In comparison, here is the breakdown of solar electricity:
- One time cost of the equipment.
- One time cost of installation.
When you look at the various factors that determine your current electric bill, you are almost inclined to compare it to an adjustable, rate loan. Several factors have volatile characteristics and can change from month–to–month. Total cost for traditional, coal burning electricity is anywhere from 13.5 cents to 15.5 cents a kilowatt hour and rising. Solar electricity is anywhere from 16.5 cents to 21.5 cents (depending on tax credits, rebates, and Renewable Energy Credits) fixed for the life of the system. The solar electricity rate can actually decline and become more valuable if traditional electricity continues to rise. As stated by the U.S. Department of Energy, our consumption of electricity is predicted to rise approximately 35% by the end of the next decade. The energy problem is not going anywhere.
THINGS YOU SHOULD KNOW
- As of January 1st 2007, the Texas electricity market has become completely deregulated more than any other state in the U.S. There is no longer a "price to beat" mandate that initially protected Texans from utility gouging.
- Since deregulation efforts began several years ago, Texas power rates have risen at twice the rate above the national average.
- At one time, Texas was one of the world's largest producers of oil and other energy products. Not so long ago, Texas was a leader in the production of energy resources. Today Texas is a net importer of its energy.
- Texas has the highest potential for renewable energy in the U.S. The Lone Star State has more abundant sun and wind than any other state. We can once again be the leader of energy production with our renewable resources.
- Texas has a Renewable Portfolio Standard that mandates 5% of our energy has to come from renewable energy. This has helped create a Renewable Energy Credits trading platform. This means you can sell the Renewable Energy Credits your system produces so that utilities and retail energy companies can meet their requirements.
- Texas has a Net Metering policy. In addition to Renewable Energy Credits, you can sell the excess electricity your system produces back to the utility and receive a credit.
- Current federal tax policy allows up to a 30% tax credit for the solar system including the installation cost. In addition to the tax credit, commercial clients can depreciate the solar system for five years.
BUILDING WITH SOLAR ELECTRICITY If you're building a new home or office building, consider solar electricity as part of the construction cost. If your builder does not know possible cost of solar, then ask them to contact a solar company. There is no better time to consider solar than at the pre–construction phase. The cost of the solar system can be absorbed into the loan or mortgage and fall under additional tax shelters. The cost of the solar system can have very little change in your payment, but you will see all the difference in your electric bill. Commercial customers have leasing options available and may eliminate up front cost all together. Leasing is becoming a popular choice for businesses and offers an alternative financing option. There are several ways to finance your new solar system, so ask about your options from a solar energy consultant.
BUSINESS AS USUAL Will we continue to accept the way we are billed for our energy? Will we continue to allow our environment to be victimized by fossil fuel consequences? Should we continue "business as usual" and just pay the electric bill we are sent? These are questions that every individual must contemplate for himself. However, you should know that we now have choices in our energy resources. You should also know that solar electricity has more than one way to pay you back for your investment. If the environmental changes that are occurring to the atmosphere as a result of our carbon dioxide emissions aren't enough to spur an interest in renewable energy, then maybe the financial motive will.
