Does Adding Solar and Wind Energy to the Grid Actually Drive Up Energy Costs?
In a word: yes. Adding solar and wind power plants to the existing energy grid drives up energy costs, though this may seem counter-intuitive. After all, adding more power, especially from renewable resources that do not have to be purchased, should have the opposite effect. But adding solar and wind power to the grid does indeed drive up costs.
What’s worse, these rising energy costs could have some very serious repercussions for the solar industry as a whole and for installation businesses in general. After all, the industry has been selling consumers and voters on the inherent good of solar and wind power generation – and selling them on the fact that it will not only be good for the environment, but for the economy, as well.
How Adding Solar and Wind Power Generation Plants to the Grid Drives Up Costs
Solar and wind are renewable and relatively low-cost to maintain, and their inputs are free, but they are not 100% reliable all of the time. Sometimes the wind doesn’t blow and the sun doesn’t shine. For these reasons, solar and wind have to be supplemented with other power generation methods when it is dark, raining, or when the wind isn’t blowing.
Because solar- and wind-power generation plants duplicate existing power generation systems, their infrastructure drives up costs. Because solar and wind power plants require their own transmission lines, they drive up costs. Additionally, because these transmission lines are generally longer than those used for other plants, due to the intrinsic needs of solar and wind power plants, they drive up costs.
How Rising Energy Costs Can Hurt the Solar Installation Business
Because we’re talking about the effect of large-scale solar, it can be tempting to think that these issues will not or cannot hurt solar installers who work with homeowners and small businesses for the most part. After all, we’re talking about the impact of solar and wind power plants on the grid.
Unfortunately, part of what makes solar power affordable and functional for the homeowner is the fact that the purchase price of rooftop solar panels is offset by solar tax credits and breaks. Also, in states where net metering is allowed, hooking up to the grid both gives homeowners a reliable backup to their own systems (without costly battery banks), but another way to offset the costs.
All of these programs could be in jeopardy if enough voters begin to see renewable energy systems as a costly burden on their system.
How Rising Energy Prices Might Benefit Solar Installers
Regardless of public’s perception of renewable energy’s role in rising energy costs, rising conventional energy prices generally mean good times for solar installers. Many consumers are still driven by their own bottom line and how energy costs impact their household budget.
What may be challenging is continuing to sell renewables as an alternative to rising energy costs if public perception begins to shift toward blaming solar and wind for those increases. For now, be sure to keep selling panels while the sun shines!
If your solar installation business could use a boost to its bottom line, it’s time to get in touch with RGR Marketing. When you’re ready to buy high quality, exclusive solar leads to give your sales team the fuel they need to make this your biggest year ever, RGR is the answer.
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