Clean Energy News

May 27, 2024

What Can Businesses Do to Offset Record High Energy Costs?

August 30, 2022

Category: news

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As the price of natural gas reaches a record high, energy costs are soaring, and businesses are searching for ways to offset their electric bills. For many companies, investing in solar panels provides a solution, allowing them not only to decrease their emissions, but also to save money.

Several factors come into play when discussing this rise in energy costs. The main driving factor is Russias invasion of Ukraine, which has led natural gas prices to be higher than ever. Additionally, utilities are raising electric bills in order to focus on hardening their electric grids against natural disasters, which are becoming more severe and more frequent in the face of climate change. This July, the cost of natural gas was up 30%, and the average rate for electricity was up 15% in comparison to last year. This is the largest increase in electric rates since 2006. In California, the utility company PG&E has already proposed additional rate increases up to 25% for commercial customers starting in the year 2023. Coupled with increasing inflation and the threat of recession, businesses are scrambling to find solutions that will allow them to remain profitable.

Many businesses have found that implementing green technologies, such as solar power, gives them some independence from electric utility companies and helps them take charge of their energy production. This allows them to be less affected by rising electric rates. Coupled with various incentive programs, and the ability to sell electricity back to the grid in a process called net energy metering, it is easy to see how solar can help businesses cut down their electric bills even in the face of rising energy costs.

 

 

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