Electricity is not a cheap commodity in the United States. Prices have been rising in the country and people have been searching for cheaper alternatives. There are several factors that can influence the cost of electricity. They are as follows:
- Fuels – The price of fuels fluctuates. When the demand is higher, the prices hike. It’s simple economics. The same is true for fossil fuels. When the prices are higher, the more expensive it is to generate electricity.
- Power plants – The power plants have their own costs of operation and maintenance.
- Transmission and distribution systems – These systems have maintenance costs as well, just like power plants. These may include repairs due to accidents.
- Weather conditions – Extreme temperatures can increase the demand for electricity, such as for cooling during the summer and heating during the winter.
- Regulations – Each state has their own set of regulations for electricity, and this may differently affect the price in each state.
In particular, the rising cost of electricity in Utah has led businesses and households to consider solar power as an affordable energy source, but it requires more than the renewable source to address the current sustainability issues in the state.
For instance, buildings are better off with using industrial component heaters for their ventilation systems. Since most solar panels require sunlight to function, it’s going to be difficult for commercial establishments to remain operations during inclement or cloudy weather.
Benefits of The Sun
Many households have chosen to switch due to the rising costs of electricity in the state. The Public Utility Records’ data showed that rates had risen annually in the last 26 years. Aside from reducing electricity expenses, a lower federal tax credit by 2020 will be another reason to invest in solar energy.
The federal tax credit will remain at 30% in 2019 before falling to 26% in the following year. Still, solar power remains a more viable choice for homes than businesses.
Sunlight could be a good source of energy especially during bright days, yet reliability becomes an issue. Generators simply can’t be turned off whenever there is no sunlight, and the same applies to industrial power plants that need to be operational 24/7.
Despite being an infinite source of energy, the problem lies in energy storage. Utah’s power grid is currently unable to store solar power for later use when there is little to no sunlight. Some experts, however, believe that this may change in the next two to four years. Households may store sunlight for emergency use, but stored capacity may still not be enough for industrial use.
While it’s not bad to harness energy from the sun, it’s advisable for companies to find a more stable power source that will keep your business up and running regardless of the weather. Solar energy still has a long way to go, but it has a lot of potential and you can already benefit from its use today. Don’t wait till it’s too late to switch to solar power or at the very least, get a solar panel as a backup plan.