How renewable energy could help in cutting costs with electricity

In recent times, the cost of living has significantly increased for every household around the world, especially because of energy costs. Fossil fuels increase energy costs for consumers in part because the industry is exposed to deteriorating weather conditions. These rising costs are another good reason to invest in clean energy now. 

Moving to clean energy would directly reduce household energy costs by an average of $500 per year, protect the economy from fluctuations in the fossil fuel market, and slow the pace of climate change.

The Consumer Price Index (CPI) has dominated the headlines in recent months, fueling debate about inflation risks and preventing further federal spending, even if it is paid in full. Such arguments allow temporary price changes to be masked by deeper affordability issues and ignore the value of federal investment in promoting economic growth.

Fossil fuels are volatile and expensive in many ways – to our wallets, to our health and to our climate. Energy costs can cause significant financial hardship for families, which is why some of them take out high-interest short-term loans to pay bills, face power outages and the risk of using heating or furnaces that are not safe for heating. Last year, more than a quarter of low-income households in the United States reported that they could not pay all their utility bills.

Why do fossil fuels no longer meet our needs?

One of the main reasons for the rise in fossil fuel prices is the industry’s vulnerability to extreme weather events. As fossil fuels continue to contribute to climate change, the industry is affected by unstable arctic winter weather, extreme summer heat and stronger hurricanes, all of which are stressors exacerbated by climate change.

Additionally, many political actors use rising fossil fuel prices to advocate for more fossil fuel production. However, the situation for drilling supporters is that domestic oil production feeds the global oil market. Along with LNG (liquefied natural gas), natural gas is increasingly becoming a global commodity. Since the fossil fuel industry began exporting LNG in 2016, exports have grown significantly. The oil and gas industry has long used high energy prices to support policies that increase production and supply, but investing in clean energy alternatives that reduce demand for fossil fuels is a much better idea. After all, price is a function of both supply and demand; despite high fossil fuel prices, clean energy alternatives would reduce emissions and consumer costs overnight.

How can renewable energy save households around the world?

“Renewable energy sources – found all around us in the form of sun, wind, water, waste and geothermal energy – are replenished from nature and do not release greenhouse gases or pollutants into the air”, according to the United Nations.

Renewable energy is the cheapest source of energy in most parts of the world today as the prices of renewable energy technologies are falling rapidly. The price of electricity produced from solar energy has fallen by 85% between 2010 and 2020. Onshore and offshore wind energy costs have fallen by 56% and 48%, respectively.

Lower prices make renewable energy more attractive everywhere, including in low- and middle-income countries, where most of the additional demand for new electricity will come. As costs fall, there is a real possibility that a large part of new energy sources will be powered by sources with low CO2 emissions in the coming years.

Cheap electricity produced from renewable sources could make up 65% of the world’s electricity supply by 2030. This could reduce carbon emissions from the power sector by 90% by 2050, significantly reducing carbon emissions and helping to curb climate change.

While solar and wind costs are expected to remain higher than pre-pandemic levels in 2022 and 2023 due to generally higher commodity and transportation costs, their competitiveness will improve even with much larger increases in gas and coal prices, according to the International Energy Agency (IEA).

Energy prices change over time and fluctuate sharply and abruptly. The price of energy is affected by changes in the amount of available fuel, electricity demand, and the costs of electricity production, distribution and transportation. But if the company has its own means of production, there is less concern about possible price fluctuations. This allows them to predict costs with greater certainty.

Clean energy is more accessible than ever. In fact, it is now cheaper to build a new solar or wind project than to continue operating most existing coal plants in the US. Driving an electric car, on the other hand, costs less than half a kilometer compared to driving a petrol car.

Thus, renewable energy could save millions of households from high energy bills, especially when it comes to electricity. The increase in the cost of living has convinced people to look into using more clean energy which will certainly benefit them as well as the Earth.