You’re probably wondering why is Matt focusing on my retirement rather than my energy strategy. The aforementioned was an example of how you can put your money to work for you and to what degree you can be involved. The principle of dollar cost averaging. Of course, it’s hard to be a market expert and make the golden pick every time. However, simply having the ability to allocate your capital as you see fit and just having options to select the effectiveness of that journey is liberating in itself. Peak Power Solutions embraces such methodology and we want to explore why Solar As An Investment is the most sensible approach when considering the energy future of your home.
Peak Power Solutions wants to be an educator before a provider, as we believe that laying a lasting foundation beneath a decision weighs heavily on the data and the peace of mind it brings you. Knowing the energy environment in which you dwell is critical when considering what path to travel. Let’s take a look at the list of what we like to call at Peak Power Solutions the “uncontrollables,”
When looking at the California model for electricity, consumers are not given any options past the local utility as far as where you can get your power. The local utility or nothing. The one exception to this rule is what is referred to as Direct Access. California, since 2009, has allowed a portion of the commercial and industrial customers (20% of the kilo-watt/hour load of a given investor owned utility) to go out to the open market and buy the KWh commodity from an alternative generator. With such vast saving implications at stake, DA was fully subscribed immediately and rarely does anyone leave the program. Outside of DA, it’s a closed market for Californians.
Therefore, you and I are subject to the rate escalations that spring up as a result of the rate studies that are performed every few years by the utilities. Most, if not all utilities, bill on what is called Time of Use. The goal of this pricing structure is easy: dissuade usage and/or change consumption habits (through increased $ per KWh) when weather conditions (heat for us Californians) are extreme and electricity is most expensive to generate/transmit. Built into those prices are the blended cost of the fuels required to generate power. A common fuel is natural gas, which is subject to the inherent volatility of the futures market. Not only do the utilities have to account for the constant fluctuations in the pricing of fuels, but California law requires they receive a percentage of imported energy as well.
With all these factors pushing down on the price per KWh and the non-existent return of investment, the unavoidable volatility of the utility rate becomes less attractive by the second. Installing a solar system with Peak Power Solutions has merit over time, as your electricity “rate” will never change. I mentioned the concept of dollar cost averaging earlier as the pulse of the 401k body. Time is our best friend in both the 401k scenario as with a solar system. The initial investment into a solar system with Peak Power Solutions will provide you the pricing consistency that cannot be reaped from the utility, thus freeing up money that was once trapped in the utility pit.
Give us a call today and begin your energy liberation journey!