Researchers at the University of Texas at Austin explored how solar-powered households can bring widespread benefits to the rest of the country, and their findings were astounding.
As explained by Inside Climate News, the study spotlighted savings that can be made by reducing demand on the electrical grid if companies and individuals invested in energy systems such as rooftop solar, community solar, and battery storage.
Lead author Nick Laws and his team found that without a way to reduce demand, the annual cost of providing electricity to a neighborhood-sized part of the grid would be $7.2 million. However, investing in demand-reducing tools would bring savings of around $3 million (40%, including incentives) on our utility bills.
"It lowers the cost for everybody," Laws told ICN.
These savings may seem like a no-brainer for utilities and grid operators to incentivize switching to renewable energy sources, but ICN pointed out that "the utility business model doesn't deal well with tools that reduce demand, largely because utilities make money by selling electricity and building infrastructure."
Forbes estimated that installing rooftop solar panels can save you between $25,500 and $33,000 over the lifetime of your panels, and the Inflation Reduction Act offers a 30% tax credit for households that install rooftop solar.
However, it hasn't been enough to influence more companies and individuals to turn to renewable energy.
Laws gave his opinion on how to spark a greater shift toward clean energy sources.
"I believe that distribution utilities need to be more proactive in identifying the problem areas in their grids that can benefit from non-wires alternatives. However, most distribution utilities do not have the tools to identify these areas, nor do they have the budget to develop the necessary tools," he told ICN, adding that there's a need to change how utilities are funded "to align their economic incentives with providing cleaner and more affordable energy."
Beyond the financial perks, solar energy also contributes to a healthier planet. By generating your own clean energy, you reduce reliance on polluting energy sources such as coal and gas, which helps cut harmful carbon emissions. This lowers your carbon footprint and supports broader efforts to cool the planet.
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