Energy Costs Are Skyrocketing – Is Solar the Affordable Solution?
Around the world, countries are facing a gruelling energy crisis, and Australia is no exception. A perfect storm of unfortunate global events has led to millions of people facing a tough few months with rising energy costs and uncertainty.
Although this time is particularly bad, rising energy costs are nothing new, and as time goes on this scenario might even become more common. Many people and governments are looking for a solution, and solar is one potential option.
In this article, we’ll take a look at what’s causing the current energy crisis and how solar power can help families and businesses weather the storm and plan for a more affordable and reliable energy future.
Why Are Energy Costs Rising?
According to Jeff Dimery, Chief Executive of Alina, at the Energy & Climate Summit in Sydney, “Next year, using the current market prices, tariffs are going up a minimum of 35 per cent.” This is a big jump and has many families wondering why.
There are many factors at play. Right now, the two main issues are the Russia-Ukraine conflict and constricted global supply issues of oil and gas. This has impacted the entire global economy, leading to a lasting crisis.
Ultimately, this situation is happening because of our dependence on fossil fuels. Oil, coal, and gas have supplied humanity with energy for over a century and allowed for many great feats of engineering and progress that would otherwise have been impossible — but they come with a cost.
This year’s energy crisis is just the most recent example of what can happen when we rely too heavily on non-renewable energy sources. In the future, this kind of scenario will almost certainly be repeated.
So what’s the answer? How can you shield yourself and your family from these kinds of crises and keep your long-term energy costs down? One potential solution is solar energy.
How Solar Can Help
Many people around the world are already turning to solar power as a way of mitigating the ongoing energy crisis. For example, Bloomberg NEF reported that Europe has imported huge numbers of solar modules, with installers fully booked for the next weeks and months.
Why are so many people embracing solar? Here’s how solar energy can help you protect yourself against energy crises:
Less Reliance on The Energy Grid
Right now, most homes get their energy from the grid which services their region or country. The energy in this grid comes primarily from fossil fuels — sources like coal, oil, and gas which are impacted by the current crisis.
When you install a solar system, your home or business is able to generate its own power most of the time. This helps insulate you against rising energy prices because you no longer need to rely on the grid and associated utility costs as much.
Less Dependence on Other Countries/Unstable Countries
Although Australia is fairly self-sufficient in terms of energy production compared to the rest of the world, major global events can still have a large impact on energy prices which directly affects ordinary Australians.
If you use solar to generate most of your power, you’ll be less exposed to these global forces. That means that unstable countries and faraway geopolitical events won’t have nearly as much of an effect on your utility costs.
Upfront Costs of Solar are Justified by Long-Term Savings
But what about the cost of installing solar panels? Doesn’t this offset any savings you would make from breaking free of the energy grid?
It’s true that solar panels cost money to install, but if properly maintained they can last several decades. Once your solar system is up and running, you’ll save enough on utilities to cover the cost of your panels fairly quickly — on average it takes about 4 years to break even on solar costs in Australia.
How SnapSolar can help
At SnapSolar, we know that rising energy costs are a huge concern for millions of people in Australia. We also know that many people are turning to solar to give themselves, their families, and their businesses a more secure energy future and avoid any further crises and cost increases.
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