Electrification and Decarbonization – What is all the Hype about?
As we enter 2023, energy challenges are becoming more prominent, affecting not only our daily lives but also our future.
Last Fall, the Mayor of Nashville asked the NFL to postpone the Sunday football game due to power shortages, while California and Texas have been experiencing scheduled electricity brownouts for two years. In addition, electricity costs in Massachusetts are at a record high.
What is going on? Let’s explore what has occurred and its causes and effects.
If you are not familiar with the terms Electrification and Decarbonization, it is prudent to become familiar with them as they are affecting our income, our family’s livelihood, the value of our homes, and our environment.
Electrification and Decarbonization is the movements away from carbon fuels, towards electric-powered technologies such as electric vehicles, heat pumps, and electric hot water tanks, by that curbing the impacts of climate change.
What has occurred? Some fun facts:
- The growth of electricity consumption has exploded over the past several years, driven by the incentive for conversion to heat pumps and the growth of electric vehicles.
- In 2021, 526,004 EVs were sold in the US, while in 2022, EV sales rose to 845,050, and in 2023, they are projected to reach 1,154,210. The USPS has just announced the planned rollout of over 9,000 EVs.
- The new Income Recovery Act will further stimulate this growth as the Federal Solar incentive was bumped up to 30%, Non-profits will soon be eligible for the 30% as will certain Electric Vehicles.
- Many communities are working with residents to convert away from carbon-based equipment, as the conscience of doing the right thing for future generations is growing.
All the aforementioned have led to historical electricity consumption in the US, resulting in a record increase in the cost of electricity for end-users. The US grid must look to other countries for sources of electricity at higher purchase rates. For the first time in our history, the major sources of fuel for the home are at record highs.
As homeowners, what can we do to lessen the burden?
- Get an energy audit and implement the suggested enhancements. In Massachusetts, the cost of the audit is subsidized on our electric bill, and the cost of the enhancements is paid for up to 75% with other subsidiaries.
- Convert to electrification if possible. The incentives (up to $10,000) make it economically viable.
- Convert the supply side of your electric bill to a 3rd party supplier. Caution: sign up for one year at a time as the rates do fluctuate.
- Invest in solar. The cost of solar has dropped significantly over the past several years. In Massachusetts, 40% of the investment cost is paid for with tax credits. In most cases, if you take out a 10-year loan and apply the State and Federal tax credits to the loan, you will be cash flow positive each month. This means that the monthly payment of the loan will be lower than what you were paying the utility, and you will make money each month.
In conclusion, Electrification and Decarbonization are not just buzzwords; they are movements that are affecting us in various ways. By being informed and taking action, we can mitigate the negative impacts and benefit from the positive ones. Learn how Northshore Magazine provides information about Electrifying & Decarbonizing your Home to help the Planet
Contact the experts at Cazeault Solar and Home to take the next steps to Electrification today!