A lot more individuals are going for commercial solar in Los Angeles due to rising electricity costs. It isn’t just home decorations and your AC that are driving your energy bills up. Energy prices are certainly on an upward trend around the whole world. Whether you are just a homeowner or an energy-hungry business, it still remains a pattern of concern. Unfortunately, from all indications, it appears as if rising energy bills will become the latest norm. This isn’t great news, but have you ever stopped to ask why? This article takes a close look at the three main contributors at the back of the spiking energy costs, and how solar could help you to save money yet still enjoy a certain ROI.
- Reduction in supply
Anyone that’s ever studied economics understands that demand and supply influence price heavily. Rare commodities are truly valuable – they will naturally demand a higher price and vice versa. That’s true for all products and services, electricity included. Until recently, national grids oversupplied power. The power stations that were pumping out electricity were just too many – consequently, power bills were lower. Well, this isn’t so any more. Less electricity is currently being pumped into national grids. Electricity has become scarce. But simultaneously, the demand level is as high as ever. The end result, higher prices of energy.
- A rise in fuel prices
While renewable such as offered by commercial solar companies in Los Angeles provide viable alternatives, the truth remains that most homeowners’ power supply is still from fossil fuel-burning power plants. These plants are also businesses and they have to break even – naturally, any rise in the price of fossil fuels will push up electricity prices. And that is precisely what is happening. We have recently seen the prices of gas and coal skyrocket. These pushed up operating costs that accompany a power plant, are then correspondingly been passed onto consumers – ordinary individuals on the streets. Even though the world has presently witnessed a small drop, coal still costs twice what it did during the 2015 to 2016 period.
- Power firms gambling the system
Under the first reason given in this article, it was noted that supply influences the price you will eventually be paying. What wasn’t mentioned is that it’s not just external factors that influence that supply. Many of the foremost electricity suppliers can game the supply system by utilizing their size to create artificial scarcity. They could deliberately throttle the output of their energy, decreasing supply and thus creating artificial scarcity (and going on to enjoy the related spikes in prices). A study by Grattan Institute has shown that large energy firms have enjoyed as much as eight hundred million dollars in extra revenue, thanks to these kinds of efforts. And you can expect the continuation of this trend thanks to several favorable factors.
When it concerns saving electricity, every tiny bit counts. Nevertheless; certain things feature a much bigger impact than the others. Case in point; the installation of commercial solar in Los Angeles is a viable solution. Solar power is certainly the secret ingredient for lowering energy bills the world over.