Rising Electricity Costs Are Driving Commercial Solar Demand

Rising electricity costs drive commercial demand for solar energy – MENAFN.COM

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Revel Energy – Rising Costs of Commercial Solar and Electricity

1990 – 2021 Industrial and commercial electricity prices

Southern California Edison Commercial Electricity Rate History (SCE) 2018 – 2022

California’s electricity rates have risen rapidly to meet rising demand, prompting companies to search for sustainable solutions such as commercial solar power.

Irvine, CA, US, May 17, 2022 / EINPresswire.com/ — California electricity prices have risen rapidly to meet booming private sector demand, prompting many businesses to consider how to reduce future energy costs. Competitive firms have found that investing in a sustainable future through commercial solar or other “green” technologies provides energy independence and is less affected by future electrification rates.

As rising inflation rates and the threat of a recession create uncertainty for California businesses, service providers will almost certainly continue to raise electricity prices for their customers. Inflated prices and cost absorption are traditionally used to limit the effects of inflation, but competitive firms are looking to the future – to generate their own free electricity, and to improve future cash flow through innovative solutions such as commercial solar power.

Investor-owned facilities increase commercial electricity prices
Investor-owned utilities, or IOU, are responsible for providing most of California’s electricity; It is also responsible for an average 30% rise in electricity rates for taxpayers only from 2020 to 2022. This sudden rate rise was preceded by 20 years of rates that are constantly rising at an average of 3% annually. Even with current rates 5 times more than average growth, debt securities are set to continue this trend.

Pacific Gas & Electric (PG&E) has already proposed additional price increases of up to 25% starting in 2023 for commercial, industrial and agricultural customers. Sempra Energy, the parent company of San Diego Gas & Electric (SDG&E), is paying its investors its highest ever recorded dividend and, most importantly, SDG&E as its payers face the highest per-unit electricity prices in the province.

A case study of commercial electricity costs
To provide a concrete example of rising electricity rates, Revel Energy conducted a case study using a Southern California Edison Commercial Rate Factor (SCE) going back 5 years. From 2018 to the beginning of 2022, these businesses experienced a staggering 37% increase in electricity rates, with an average increase of more than 7% annually.

With the foresight looking forward, Operations and Management were intent on combating the inevitable future electricity cost increases and rates of rise. By working with Revel to install a commercial rooftop solar system coupled with energy storage, the facility has been able to offset electricity use significantly starting in early 2020.

With increased cash flow from electricity savings added with lucrative incentives such as the Solar ITC Tax Credit and Self-Generation Incentive Program (SGIP), and federal and state bonus amortization – the net cost of the system to pay for the system has been reduced in less than 3 years. Designed with an expected annual increase of 3% in electricity costs, the average annual increase of 7% did not affect the solar-equipped facility as much as their neighbors without solar.

Rising Electricity Costs – A Catalyst for California Business to Become Greener
It is undeniable that ‘going green’ is a good thing, and doing so at a reasonable cost is the challenge for modern businesses. As electricity prices become more expensive, generating free electricity makes commercial solar energy more affordable.

Without the solar companies continuing to pay their ever-increasing electricity bills, every year they are roasting in their budget. Investing this money in commercial solar and free electricity generation is the catalyst for California companies to become green.

Revel Energy has helped commercial, industrial, and agricultural companies control ever-increasing electricity costs with dynamic energy solutions including commercial solar power, energy storage, LED mods, and EV charging stations identified around their needs. Contact us today to find out how much your business can save in the face of higher electricity costs in the future.

Sources
PG&E:
SDGE:

Tyler Crosno
Revel Energy LLC
+1 949-281-7171
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