Utility electricity rates keep trending upwards nationwide. According to Philip Moeller of the Federal Energy Regulatory Commission, “We are now in an era of rising electricity prices.” And Daniel Kish of the Institute for Energy Research adds that,
“Everywhere you turn, there are proposals and regulations to make prices go higher… The trend line is up, up, up. We are going into uncharted territory.”
And all of this without any corresponding change in the underlying service. Utility electricity isn’t becoming faster, better, or cleaner. We all receive the same electrons as before.
But now, they’re more expensive.
And it’s not simply the nominal price of utility electricity that is so worrying. Over the past 25 years, electricity rates have increased faster than inflation. As such, the real (i.e. relative to inflation) cost of grid power is much higher than it’s ever been. And moving forward, the pace of change will only accelerate.
Understanding These Soaring Electricity Prices
There are many different factors behind this upward trend:
- America’s energy infrastructure is ancient, requiring frequent upgrades.
- The coming explosion of electric vehicle (EV) charging stations and smart grids is demanding costly improvements now.
- With more gadgets and more people, demand for electricity keeps rising.
All of these factors continue to place upward pressure on grid electricity rates.
And nowhere is this more pronounced than in California – the seventh largest economy in the world with some of the highest electricity prices in the nation.
Fortunately, commercial building owners in the state are uniquely positioned to counteract this upward trend.
With abundant sunshine and generous green incentives, California is an extremely attractive market for solar energy. That the state is also decommissioning the last of its nuclear power facilities means grid electricity prices can be expected to rise faster than the national average. And this means the relative cost of going solar in California will become even more attractive than it already is.
Businesses that take advantage of these factors stand to reap huge savings not only today, but much more savings over time. This is because each additional kilowatt of installed solar capacity protects you from future rate increases. The less reliant you are on utility power, the less exposed you are to soaring prices.
Those savings are further amplified as society continues to replace gas-guzzling vehicles with EV’s. Using solar panels and energy storage (batteries) to power EV charging stations at your building means:
- Your employees benefit from cheaper commutes.
- Your business benefits from lower EV-charging costs.
- Your business benefits from happier employees and publicity as a leader in a cleaner, greener California.
Is Solar Power Right for Your Business?
America’s energy landscape continues to undergo dramatic changes. And this rapid evolution is especially pronounced in California.
Going solar won’t simply help you weather this looming storm. It will actually help you thrive in the tumultuous years ahead.
To learn how OnSwitch can help you successfully navigate and benefit from this changing energy landscape, request a free property evaluation today.