Can Renewable Energy Help Combat Soaring Power Costs?

Renewable energy is increasing in popularity as more people turn away from conventional sources. In fact, its usage increased by 42 percent from 2010 to 2020. It helps reduce the use of fossil fuels that contribute to greenhouse gas emissions. Along with environmental benefits, it can also cut costs.

Here are some ways solar and wind power can lower energy expenses.

Renewable Energy Has Lower Operating Costs

Renewable energy, such as wind, is free — so you don’t need to pay for the fuel to power devices. Also, the operation technologies have dropped in price. For example, the cost to install a solar panel has fallen 70 percent since 1998.

In addition, renewable technology is easier to maintain. Many just require cleaning a few times a year. Also, solar panels have fewer moving parts and don’t use flammable sources to operate. Less maintenance means the plants rely on fewer people to run, lowering labor costs.

The Prices Are Dropping

Renewable energy is becoming a more cost-effective source than coal. From 2010-2019, the price of solar dropped 82 percent, and onshore wind fell 40 percent. Rising demand and advancements in technology are contributing to decreased expenses. However, the uncertainty of the market means coal prices are rising. The average sales price for coal is around $50.05, depending on its type.

Fossil Fuels Rely on the Global Market

Fuel prices are subject to change based on shifts in policies and production. Presidents can increase costs to push for the expansion of fossil fuels. Another cause for higher prices may be the cancellation of the Keystone XL pipeline, which would have carried petroleum from Canadian tar sands to Nebraska. President Biden halted construction to help protect the environment, but it could have increased transportation efficiency and lowered prices.

Clean Energy Is More Predictable

Renewable energy may seem unpredictable because of its dependence on the weather. However, its design makes it reliable and resilient. For example, most systems are spread over large geographic areas. In addition, they are made of numerous individual parts, such as multiple turbines. This ensures the whole system doesn’t fail during severe weather.

On the other hand, fossil fuels are more vulnerable to severe weather. Extreme heat or cold and strong hurricanes can damage the systems. An arctic cold front cut natural gas production in half in Texas, knocking out 357 power plants. As climate change continues, systems running on nonrenewable energy will become less effective.

There Is an Increase in Innovative Technology

Technology is improving as renewable energy becomes more adapted in society, which helps lower operating costs. For example, wind turbines are now built with taller towers and longer blades. That way, they can increase the amount of electricity generated per turbine.

In addition, drones and thermal cameras check for damage or any internal abnormalities. Some companies are providing new solar technology that assists public and private schools.

Renewable Energy Comes With Tax Incentives and Subsidies

Tax incentives can help reduce the higher upfront costs. The federal government offers many credits for qualifying energy projects, including the Renewable Electricity Production Tax Credit (PTC) and the Investment Tax Credit (ITC).

Some states even have specific mandates for how much renewable energy should be sold, and the government may lower prices to meet this goal. Renewable energy certificates let you pay for energy production without directly obtaining green sources.

Green Power Can Cut Home Expenses

Renewable energy sources like solar can cut your monthly bills. Solar power reduces your need for electricity, and you can save up to $10,000 to $30,000 over your lifetime. Plus, switching to clean energy can increase your home’s value. Those who continue to use fossil fuels can still benefit in the long run because with fewer people relying on fossil fuels, gas prices may drop.

How Renewable Energy Can Provide Energy Savings

Switching to renewable energy is important for the planet but can also cut expenses. Lower operating costs and new technology is making solar power more affordable. Therefore, it’s time to start thinking about expanding clean energy production.