Fluctuating Gas Prices Versus Solar, Locking In Your Gas Rate
Posted on Dec 30, 2013 by editor
These days, you pay a considerable amount for your gas. Sadly, in the future, as our fossil fuel supply runs low you will pay even more. In the US, energy prices have increased by six percent each year, throughout the past three decades. Using solar panels and gas power in Sacramento allows you to control your energy bills, and ride the wave of any future rate increases unscathed. Solar will save you money by holding down the rate of non-renewables you use so your energy bills can remain steady through the coming years. How much you save will depend on the two factors below:
1. The Amount You Pay In Gas Today
In all likelihood, if your gas bills are very high and you consume a lot of gas, you will save a significant amount of money with solar straightaway. However, those will smaller gas bills may not notice huge savings at the beginning. But the two major factor to consider here are: Do you expect to use more natural gas in the future? Do you expect the price of gas to increase?
Gas prices fluctuate based on a variety of factors, but primarily economic climate and extraction of the gas. For example, when the companies have access to capital and can buy equipment they can produce more gas. Meanwhile, if the winters are warm they can work through at least most of the season to produce more gas. More gas and a static demand means the price stays the same. Yet, this isn’t always the case. If there’s a natural disaster and gas production slows prices could surge.
Yet, you don’t need to be subject to fluctuating gas prices. You do have the option of setting up a gas contract which locks in the price of gas over a period of years, usually 5-10. Of course the price at the beginning means your monthly gas bill will go up a little bit, but this is an investment-- you’re supposed to save down the line. If you lock in your gas price at a low rate with the expectation the price will go up all you need to do is supplement the system with free solar energy. On to the second important factor:
2. How You Get Solar Energy
A solar water heating system is one of the most efficient solar systems on the market. You can save up to 75% of your home’s water heating needs. The solar system initial costs are generally only a third of what a solar electric system costs. Your solar system will be able to generate about 1,860 gallons of hot water a month. If you want to invest in your energy independence and renewable energy then purchasing a solar water heating system is your best course of action.
Producing and using natural gas is unclean. In the US, most of our energy is sourced from dirty fossil fuels including oil and coal, but natural gas isn’t a much better alternative. While it only produces half as much, natural gas still emits a great deal of greenhouse gases that contribute to climate change. Whereas solar is simply free, clean energy from the sun.
Natural gas may be inexpensive now but it is not a long term solution to energy independence... and it won’t always be cheap. Any change in international politics or a natural disaster could turn the whole market on its head. Whereas that solar system on your house is yours alone to meet your family’s energy needs. Lock in your gas price today and invest in solar for tomorrow.