And it’s not hard to see why.
When Thomas Edison turned on the world’s first investor-owned electricity plant in 1882, it was a groundbreaking achievement. Distributed power and affordable energy were truly revolutionary concepts.
But very little has changed in more than 100 years. The transmission lines, business models, and inputs (i.e. fossil fuel) have remained the same. And why should they change? When you have a virtual monopoly on an inelastic good, there’s nothing to fix.
But then along came solar energy, wind energy, and other renewable power technologies. And suddenly, average homeowners could create their own electricity independently and affordably. They could use free inputs (like sunshine or when) and opt out of a system that is dependent on increasingly expensive oil, gas, and coal.
The Rise of Grid Parity Around the World
In the beginning, these alternative forms of power were relatively expensive. This is why many governments around the globe use subsidies and incentives to encourage widespread adoption.
But the technology has evolved quite rapidly, with prices constantly on the decline. Since 2011, solar panel costs have fallen 62% – a remarkable drop.
Moreover, fossil fuel prices have steadily risen, forcing utility companies to constantly raise their rates.
Consequently, many regions of the world have already reached grid parity – the point at which renewable energy is the same price as continued reliance on the utility network. Wind power in Texas, for example, is already cost-competitive with local utility prices. And in Chile, solar successfully competes with grid electricity without incentives.
In San Diego, we’re pretty close:
- We already have tons of sunshine (an important component of solar energy)
- Solar panel prices keep falling (as mentioned above)
- And in 2013 alone, SDG&E raised its prices by 12% to 40%
On top of that, San Diego solar customers benefit from a wide range of incentives, tax credits, and other government-funded programs to help drive down the cost of installing photovoltaic (PV) technology.
Make Sure Your San Diego Solar Panel Installation Is Subsidized
Whether or not we actually need these incentives continues to be hotly debated.
The utility companies are desperately trying to get rid of them as they defend their dying monopolies. And even some solar power advocates believe that San Diego has already reached grid parity – making subsidies unnecessary.
Need them or not, the government is prepared to give you free money to install solar panels today. But like all incentives, the money won’t be around forever. Solar rebates have already expired. And net metering could soon follow.
If you’re thinking about going solar (and you absolutely should), don’t wait too long. Act now before the money runs out.
To learn how Sunline Energy can help you receive the most free electricity at the lowest possible cost, contact us today for a no-obligation consultation. All Sunline Energy quotes are 100% free of charge.