Fight the PG&E Power Price Surge
Suppose you live in California and pay utility bills. In that case, there are two things you can count on being true: first, electric power is expensive, and second, California’s unstable electric infrastructure will frequently cause you to lose power at the most inopportune times.
According to data from the U.S. Energy Information Administration, the cost of electricity in the Golden State is more than twice as high as the average for the rest of the country. While utilities work to reduce the risk of wildfires caused by their power lines, electricity rates are rising, placing the burden of covering the costs of strengthening the grid on customers.
On the other hand, when it comes to solar energy, you can bank on a supply that is both economical and reliable (astronomers estimate that the sun will continue shining for five billion years!). If you are searching for a technology that will be around for several decades to come, solar power is the way to go. Besides this, solar power is completely free. Once you have made the initial investment in a solar photovoltaic (PV) system, the only further costs you will incur are for occasional maintenance on a system that will last 25 to 30 years.
See a difference every month
You can lower your monthly utility rates if you install a residential solar panel system because this will result in a decreased demand for electricity from your service provider. You will still need to keep an account with your electric utility provider and be connected to the grid after installing solar panels. Even so, you will consume a significantly smaller amount of the power provided by the grid than you did before. Any excess power you generate flows into the grid, unless you have a battery backup system. In an exchange known as “net metering”, you’ll receive a financial credit from your electric utility for any energy you send into the grid.
The size of your utility bill is determined by a variety of factors, including the rates charged by your local utility, the size of your system compared to your energy requirements, and the times of day when you consume the most energy.
When determining the value of going solar compared to the cost of a solar panel system, it is vital to keep in mind that the cost of energy varies substantially from state to state and rate plan to rate plan. This is relevant information to consider, as it affects how much money you will save by investing in a solar panel system and how quickly you can recoup your initial investment.
Of course, you could reduce your out-of-pocket costs by taking advantage of incentive programs. Depending on where you live, you could be eligible for financial incentives offered by the federal government, a state, or even your local municipality.
What goes up keeps going up
Of note, the price of energy in the area served by Pacific Gas and Electric Company (PG&E) has steadily and alarmingly increased over the previous 35 years. The high rate hikes, changes to the rate structure, modifications to the Time-of-Use periods, and efforts to upgrade the grid to prevent wildfires have all contributed to the skyrocketing energy bills that PG&E customers experience.
On the bright side, installing a solar panel system can protect consumers against never-ending rate hikes. Because California utility customers pay some of the highest prices for power in the country, they save more when going solar. Californians can cut the amount they pay for electricity when switching to solar energy by a more significant percentage than customers of utilities in other states.
Energy prices will continue to surge, as will residential solar panel system savings!
Year after year, solar photovoltaic systems produce a stable supply of energy. Yet, the amount of money saved each year increases during that time. Why? Because utility rates are constantly rising, and every kilowatt-hour generated by a solar PV system is one kilowatt-hour not paid to the utility company. As energy prices spike, your solar PV system saves you even more money.
Because of soaring utility costs, the payback period of your solar photovoltaic system may be shorter than expected. Payback periods can be reduced significantly, from 10 years to 7 years, for example, as energy costs rise. By going solar, it’s possible to drastically reduce your monthly utility bill to the point where utilities don’t play a significant role in your budgeting concerns. Under the right conditions, some homeowners are able to eliminate their electric bills completely.
Solar power is becoming increasingly popular because of the substantial financial savings that it offers. Please note that the total cost of going solar varies based on your individual situation. Even so, you can rest assured that you will pay less to your electricity provider as a result of switching.
Why put off reaping the benefits of solar power? To learn more about saving money by using solar technology or to receive a quote for a solar panel system, contact one of our solar experts today.
