Solar Panel Energy Production Companies Save Money

Is it time I was promoted to utilize my correct skill set?  The clear answer is yes.  Am I able to make this happen?  Maybe.  However, I don't control the business model of this company.  All companies have a business model, even solar companies.  Now, when it comes to the solar panel and renewable energy industry, to make costs lower, we have to take a look at the structure of the business model and see how they are operating to keep efficiency and cost inexpensive.  

Transmission, Distribution, and Administration (TD&A)

Long-term TD&A costs per customer for investor-owned utilities have endured remarkably consistent over the prior six decades. TD&A prices have moved up and down over time, and most recent additions can be assigned to investment in solar infrastructure.

So why are manufacturing and distribution expenses trending up? Are renewables the problem? Probably for some of it, yes! For instance, the CREZ lines in Texas have released significant amounts of low-cost wind to connect to the Texas grid, and there’s an investment associated with those lines.

But capital spending to pass renewables is not the entire tale. Much of our infrastructure was created decades ago and is in need of investment, so much so that the American Society of Civil Engineers gives our power infrastructure a grade of D+. We have also been investing in a stable, more stable grid that can self-report disturbances and keeps the lights on. Also, super storms like Sandy and Harvey also need investments in grid solidification.

Wind Or Solar Panels

As for Shellenberger’s case that the intermittency of solar and wind include variability in the grid, while true, has not been shown to happen in higher costs. There are also concerns that the addition of more renewables would require increased grid durability standards or ancillary services. Once over, that has not held the event, at least in ERCOT.

As further wind has been added to the Texas grid, a lot of wind, regulation, up (and down) claims have not increased. More efficient market changes allowed regulation requirements to decrease significantly even with increasing wind penetration. The reason criteria have not changed is because the ancillary service requirement is set by the most abundant plant that could trip offline, in this example, the 2,700 MW South Texas Project nuclear plant.

This early driving adoption leads to overbuilding and overpaying, but the succeeding rise in electricity prices was driven by policy, not some natural physical cause. Prices and subsidies have since improved, and this kind of overspending is not likely to proceed.

Low-Cost Solar Panels

Other determinants, such as the price of natural gas, are in play as well. The amount of natural gas has dropped significantly in the preceding decade, decreasing wholesale market costs for electricity. To facilitate compound things, for much of the U.S. electricity demand growth has slowed.

The grid has many shifting gears, so insisting cause and effect between any two are likely problematic. The declaration that wind and solar alone have driven up the price of electricity is just too simplistic. To be fair, maintaining that wind and solar are the most consistent option everywhere every time is also too simplistic. One thing is shifting toward more clarity as time moves forward is that versatility is going to be invaluable, but persisting open to options among various generating technologies also will help secure a more resilient and affordable electricity system.Want to save and be guided by experts?

Go to HahaSmart.com and try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month.