Feeling the Pinch at the Pump? Solar Can Help
Have you noticed the sky-high prices at the gas pump lately? It’s not just us regular folks feeling the pain – those soaring fossil fuel prices are also hitting us where it hurts the most, our electricity bills. As a solar energy solutions company, we’re here to tell you that there’s a way to protect yourself from this volatility, and it all comes down to harnessing the power of the sun.
The Fossil Fuel Price Rollercoaster
Let’s take a step back and look at what’s been going on with fossil fuel prices. The Energy Information Administration (EIA) has the receipts – the price of natural gas for power plants has been on a wild ride over the past few years. From a period of relative calm and low prices between 2015 and 2020, we’ve seen prices skyrocket, with a giant spike in February 2021 due to the Texas Freeze. And the EIA is predicting that these high prices aren’t going away anytime soon – at least through the end of 2022.
Now, you might be thinking, “Okay, so natural gas prices are up, but how does that affect me?” Well, my friends, it’s a domino effect. Power plants that burn natural gas to generate electricity are facing much higher fuel costs, and those extra expenses are getting passed on to us, the consumers. Suddenly, that electric bill is looking a whole lot more painful.
Enter Solar: The Fossil Fuel Volatility Hedge
But there’s a solution to this fossil fuel price rollercoaster, and it comes in the form of good old-fashioned sunshine. Renewable power sources like solar have remained cost-competitive, even in the face of this fossil fuel crisis. And that’s where the magic of policies like Minnesota’s “value of solar” comes in.
You see, Minnesota has this nifty little policy that essentially pays solar producers for the value they bring to the grid. It takes into account the cost savings from reduced fuel purchases, pollution, and operations and maintenance that utilities enjoy when they use solar energy instead of fossil fuels. In 2022, the state’s Public Utilities Commission set the value of solar tariff at 11.78 cents per kilowatt-hour. That’s a pretty sweet deal, if you ask me.
But the real beauty of this policy is how it can help shield us, the consumers, from the volatility of fossil fuel prices. Let’s say, for example, that Minnesota electricity customers use 1 million units of electricity generated by burning natural gas. If the price of gas doubles from $3 to $6 per unit, those customers’ fuel bills would also double, from $3 million to $6 million. Ouch.
However, if solar energy can provide 10,000 of those 1 million units of electricity, it can actually blunt the impact of the natural gas price increase. Instead of bills doubling, they’d only rise from $3 million to $5.7 million – a savings of $300,000. The more solar energy we can produce, the smaller the impact of those pesky price fluctuations.
Protecting Yourself from Fuel Price Shocks
Now, the value of solar doesn’t just apply to natural gas – it can also help hedge against gasoline prices. As more Americans buy electric vehicles (EVs), they’re shifting their fuel source from refined oil to electricity. And with the value of solar policy in place, grid electricity prices can become more stable, protecting EV drivers from those dreaded price shocks.
But it’s not just about relying on the grid. You can also take matters into your own hands and invest in rooftop or community solar for your own home or business. Renewable energy can act as a hedge against fuel price fluctuations, providing a more stable and predictable source of energy.
And let’s not forget the long-term benefits. While the value of solar may not make your electricity cheaper today, it can sharply reduce how much utility customers will be exposed to price shocks in the future. The more solar energy we can build, the less we’ll be at the mercy of those volatile fossil fuel markets.
Embracing the Solar Revolution
So, if you’re feeling the pinch at the pump and on your electric bill, it might be time to consider making the switch to solar. At Solar As Systems Inc., we’re on a mission to help you take control of your energy future and protect yourself from the whims of the fossil fuel industry.
Whether it’s a rooftop system for your home or a community solar project for your neighborhood, we’ve got the expertise and the solutions to help you weather the storm. So why not join the solar revolution and say goodbye to those pesky fossil fuel price fluctuations for good? Your wallet (and the planet) will thank you.
