As the last few years have demonstrated, the only constant in life is change. A multitude of factors has conspired to create unprecedented market instability, and it can be easy to assume that you have no control. As an individual consumer, you cannot force an economy to stabilize, but exposing yourself to the fluctuations of a system like this is expensive. However, there is a better option - you may not be able to control the market, but you can control your energy. Some people are going to want to stay on the fence, but to those people, we say - look at California.
When it comes to the rising costs of an unstable market, California is an incredible test case for the value of solar. With some of the highest energy prices in the country, and some of the largest environmental impacts of climate change, California needs an energy solution that puts the control back in the hands of the consumer. The adoption of clean, renewable energy by California is a compelling example of how solar is the solution to current instability. By following the example of California’s growing solar installation base, you can take control of your power, achieve energy independence, and safeguard yourself against the all too common pressure of flux.
How does a solar installation generate energy value?
Between global conflict and supply chain issues, the cost of electricity is on the rise. Already we have seen the cost of electricity increase by 14% between 2021 and 2022. As this figure is from February, it doesn’t include the additional price hike levied in March, or any additional price hikes we may experience this year. Add to this figure the rising cost of fuel, and the cost of electricity is set to increase dramatically this year.
Solar energy is the solution to these price increases. By generating your own electricity, you can avoid the cost of any impending price hikes. Instead of paying more and more for your monthly electric bill, you can comfortably cover your electricity needs, and watch as your savings cover the cost of the system. Plus, given the fact that most systems pay for themselves in 7 years, you can expect to enjoy more than a decade of pure savings following the initial payback period.
California homeowners use less energy on average than the rest of the country, and yet continue to pay a premium compared to other states. As prices continue to rise, we can look to California for a prime example of just what can be achieved by making the switch to solar.
How does a solar installation add property value?
In a time of uncertainty like this, you want to look for investments that live outside the stock market. An investment in solar energy is one that is not subject to economic fluctuation, and will remain stable and valuable across the board. The average homeowner sees an increase in property value of $3000 - $5000 dollars per kW of solar generation installed on your home. For this reason alone, solar represents an excellent investment opportunity for the current economic climate. Not only will you see powerful returns in the form of energy savings, but the increase in property value is likely to improve as California continues to push towards its long term energy goals.
In this way, California solar sends a clear message to the rest of the country - solar is a strong, safe investment. It begins paying dividends in the short term, and promises increased value in the long run. Compared to other potential investment opportunities on the table, solar is a much safer place to put your money. This trend isn’t new by any means, but it will only become more true as we see markets and prices trend upwards.
How does a solar installation pay for itself?
When you buy electricity from your utility, you are at the mercy of the market. You pay what the utility charges, and that number is impacted by availability, number of users, price hikes, and current events on the global scale. All that amounts to a lot of factors that you cannot control, and you’ll end up paying for the privilege of each and every one. The alternative is to seek energy independence through the use of self-generated solar energy. Your monthly bill will be significantly lower than your current power bill, and when those savings surpass the initial cost of your system, then you’re in the business of generating pure value through your system. Couple that with a battery storage system, and you’re in an even better position to save money on your energy usage at night, in peak hours, or in the event of an emergency.
California has had to deal with the unfortunate impact of climate change in the form of increasingly impactful fire seasons, and outages are common during the summer months. Some households are impacted by these outages more negatively than others, and cannot afford to be without power. Solar energy takes strain off the grid, and allows a homeowner to be self sufficient in the event of an outage due to accident or emergency. The rest of the country can learn from this level of preparedness, and begin planning to free themselves from the strictures of the grid. The more that California is able to extend solar adoption, the more we can reduce our reliance on fossil fuels. This is critical for the state, and crucial for the country and the world at large.