New research shows that switching to solar energy can reduce utility costs for both companies and individuals by at least 40%.
The University of Texas at Austin researchers published their findings in the Electric Power Systems Research journal. They discovered that tools that reduce electricity demand could lower utility bills by $3 million annually, decreasing costs from $7.2 million to $4.2 million per year.Â
Solar energy lowers costs for homeowners, renters, utility companies, and grid operators. However, companies have been slow to adopt solar because their traditional, outdated business models don't generate revenue by reducing demand.
Nick Laws, lead author of the study, told Inside Climate News: "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."Â
He also recommended updating how utility companies are funded "to align their economic incentives with providing cleaner and more affordable energy."
Whether you are an individual or a company, solar energy systems — such as community solar, rooftop solar, and battery storage — are among the best ways to save money on home energy costs while reducing planet-overheating pollution.
According to Forbes estimates, solar panels can save you between $25,500 and $33,000 on electricity costs throughout their lifetime. Meanwhile, they reduce your reliance on polluting energy sources to lower your carbon footprint and curb harmful carbon pollution.Â
For solar installation estimates and to compare quotes, EnergySage offers free tools to take the guesswork out of solar. These services are entirely free and available online to help you sign up for solar with confidence and without any high-pressure sales tactics.
In their conclusion, the authors of the study wrote: "It is becoming more and more important for system planners to work with DER [distributed energy resources] investors to plan efficient distribution power systems."Â
"Call them 'non-wires alternatives,' call them 'virtual power plants,' whatever — it's a much-needed solution to fast-rising electricity rates that we can and should harness ASAP," Scale Microgrids, a renewable energy services company, commented on the study via LinkedIn.Â
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