Slow build-up to energy shortages
Last updated on December 28th, 2017 at 05:47 pm
“Fossil fuels are no longer going to be a viable option for our children’s and grand children’s future use, and their eventual demise is already pushing present energy prices up higher and higher.”
Ofgem is predicting that there may be 20% electricity price hikes by 2020, and also that future supplies are in jeopardy.
Stuart Lovatt from Power My Home says, “I see our current energy predicament similar to the 1930’s when people sensed the build-up to war, but nobody wanted to admit it, not even the Prime Minister.”
Understanding that the government’s energy policies have been planned to take place over a period of around 50 years or more, we are leaving the last policy timescale with North Sea resources depleting after only 30 years.
The revenues from the North Sea gas fields should have funded our country’s transition to alternative energy sources. This situation is an issue that we will discuss in more detail in future articles.
With the current predicament of energy shortages looming on the horizon, it has now become up to individuals to take responsibility for their energy supplies, and that is why we often say that we have entered the solar century.
“PV solar panel prices are dropping at a steady rate, which means that solar going to be the cheapest source of energy around.”
We didn’t think we would be saying that for a few years yet, but with the current feed-in tariff rate being so high, at 15.44 pence per kWh, you have to apply this year for this higher rate.
That may sound counterintuitive, with all the perceptions people have that solar is expensive, but the actual reality is different from the perception, as the price gap between fossil fuels and green technologies such as solar panels are shortening year on year.
‘I will leave it for a few years before I get my installation done’, say some people, who may think waiting will be of more financial benefit. However, this is not the case.
Installing either solar heating panels or photovoltaic (PV) panels today will allow you to earn revenue with the feed-in tariff incentives.
The rate at which you’ll get paid decreases the longer you postpone, so someone installing solar technology in 5 years time will get a much lower rate than the current 15.44 pence per kWh.
In addition to the lost revenue, you will pay much higher prices for your domestic or commercial power, the money from which could have used towards paying for your solar equipment in the first place.
With payback times currently at around 8– 10 years, you would only have another three years left before you reached pure profit territory.
When writing these articles, I sometimes feel like a small ant’s voice, warning the more massive colony of impending danger. People, however, continue to act unheeded, until it’s too late. By reading this article, you have picked up valuable information, which will put you at an advantage over all the other ants’ in our colony/society.
Be smart, be independent-or as one convert to solar power, Mrs Stephenson from Surrey, put it:
“There is a rather excellent feeling of being free from your previous high energy bills when you get your first heat and light from a solar panel on the first morning.”