When you pay your electricity, bill, you’re not just paying for the electricity. In fact, about two thirds of your bill is covering the cost of the infrastructure needed to run the electricity from the power plant to your home.
Electricity is first generated at the power plant. Here in the northeast, most of our energy is supplied from burning fossil fuels. However, once an electron is created and sent to the grid, it is impossible to tell if the electron was generated from burning fossil fuels or if it came from a renewable energy source.
After the electricity is generated, the voltage is increased so it can travel more efficiently though transmission lines to the substations. From there the voltage is decreased and the electricity is sent to homes and businesses at a low level that is safe for consumption.
As you can see, there is a massive amount of infrastructure that goes into delivering electricity to your home or office building, which why your electricity bill is roughly three times the price of what is actually costs the power plant to generate an electron. On the other hand, solar panels require none of this infrastructure. The power that is generated on-site supplies energy directly to the building where it’s located, off-setting the need to use dirty, expensive power plant energy coming from the grid.
Although a lot of people are deterred from the high initial cost of installing solar panels, there are now many alternative funding options to help finance solar instillation, such as tax rebates or leasing your panels. Furthermore, as the price of grid electricity continues to increase, the energy you generate from your solar panels will still continue to be free, giving you a higher return on your investment.
As solar system technologies continue to improve and the cost of utilities remain on the rise, solar is becoming a more attractive investment for both individuals and businesses. When we also consider the negative environmental impacts from dirty power plants, solar becomes a smart investment for both ourselves and the future of our planet.
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