A company named One Stop Green has announced a 3.86kW Solar PV installation for a 14,000 square foot private residence in Piney Point Texas. Piney Point is just west of Houston Texas. Electricity rates in Houston have been declining substantially in recent years but could be increasing in the near future due to electricity shortages in Texas among other factors.
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Producers of wind electricity were among those who followed last year’s budget drama in hopes that alternative energy subsidies would not become a victim of spending cuts. The industry has grown accustomed to large subsidies for wind generated electricity. If congress doesn’t take any action to extend the subsidies or rework them by the end of 2012 the industry might find itself without federal backing for the first time in two decades. This leaves investors and potential investors in wind projects in limbo.
Texas Electricity Rates
Along with the government subsidies provided to wind electricity producers Texas has passed renewable energy mandates which required that a certain amount of electricity come from renewable sources. Great advancements in the wind industry have been realized in recent years as a result of government support. Conventional methods of power production, such as coal and natural gas, are no longer the only choice in cost efficient energy. Wind electricity can be produced nearly as economically.
However, the growing national debt could mean an end to government support for the entire renewable energy industry. Many wonder if wind technology has advanced sufficiently to stay cost competitive with other electricity generation methods. The bottom line in free markets is always cost.
Let’s consider the various benefits of wind-produced electricity. The obvious is the fact that it’s renewable and clean. To survive, the wind industry must effectively combine environmental cleanliness with low cost. If the future does bring decreased government help, the wind industry must still find a way to compete cost effectively. Looking at past trends in electricity from fossil fuels reveals a continued climb toward higher costs.
However, we have seen interesting developments in the natural gas industry in recent years that add a little more of a challenge to renewable electricity in competing on cost. In particular, new shale drilling techniques in Texas have successfully decreased natural gas costs for consumers for the past four years. The natural gas industry continues to produce most of the electricity consumed in Texas and many other states. There’s no question that the wind industry must stay on the leading edge of producing clean, cost effective energy to compete.
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