The cost of renewable energy can vary widely, depending on many factors. There are tax incentives for businesses who install solar panels and other renewable resources. These can make the costs of going green easier to manage. But before you start calculating the cost of installing renewables, consider the environmental and financial benefits.
In addition to saving money, moving to renewables can help mitigate climate change. Studies estimate that switching to clean energy can reduce carbon emissions by one-third. If 100 million households switched, it would save hundreds of dollars per month. This is the equivalent of US$1.3 billion in power plant operation costs per year.
It can also help mitigate costly power outages. In fact, one hour of downtime can cost a company $100,000. With a more reliable and dependable renewable energy supply, the chances of an outage decrease significantly.
A new study conducted by Lazard found that the cost of wind and solar power has dropped 68 percent in the last six years. According to the report, these two technologies are now the cheapest sources of electricity available.
The most expensive option for generating electricity is coal. Coal costs $92.5/MWh, making it the most expensive of the traditional power generation options. That’s compared to the cheapest renewable option: onshore wind.
Wind is estimated to account for 8.4% of the country’s total energy production. By 2026, the PJM Interconnection, the major power system in the Mid-Atlantic, will have 22 percent of its total power supply from wind.