In 2010 Electricity Rates Will Spike – Is Renewable Energy the Solution?

At a time when this country’s energy prices soar to record highs, we are aware that change is essential and renewable energy is the answer. Americans need to take responsibility for the amount of energy they consume by applying the resources we have available to create our own renewable energy.

Locally we have several options including using homemade solar energy, wind energy, hybrid vehicles and sustainable resources. For example when homes and businesses use solar power it is a key cost-saving technology which enables them to generate their own electricity and sell any excess power back to the grid through net metering. Many home owners have already taken this step with homemade solar panels and are currently saving on the cost of their utilities.

The government is in the process of reforming the energy bill for 2010 and implementing programs that will offer financial assistance to home and business owners. They plan on spending hundreds of millions of dollars to offer this assistance through grants, loans, rebates and reimbursements. The estimated energy that would be saved by using this technology is invaluable.

Carnegie Mellon University projected that using solar energy could help reduce electricity demand by 5 percent during the most costly hours of the year. During the summer months when the sun is most intense and temperatures are the highest electricity rates can increase 15 to 30 times more during these periods when the demand is highest. Although 5 percent may not sound like much it translates into billions of dollars being saved annually.

This should concern all of us because residential consumers in utility service territories where rates haven’t expired are facing a $4 billion increase in their electricity rates by 2011. As people have become more environmentally conscious they have been using products that reduce their impact on the environment and lower their bills. Many people are driving hybrid or electric vehicles, building solar panels for their homes and using simple solutions like CFL’s- compact fluorescent light bulbs to reduce energy costs. Reputable companies have claimed you can reduce your electricity bill by 80% using solar panel systems and windmills. They offer step-by-step instructional guide kits which teach you how to build your own solar panel renewable energy source.