Rhode Island issues its plan to achieve 100% renewable electricity by 2030

Home Solar Cost vs Utility Bills compares electricity rates, ROI, incentives, and battery storage, explaining payback, financing, and grid fees while highlighting long-term savings, rate volatility, and backup power resilience for homeowners.

Key Points

Compares home solar pricing and financing to utility rates, outlining savings, incentives, ROI, and backup power value.

✅ Average retail rates rose 59% in 20 years; volatility persists

✅ Typical 7.15 kW system costs $18,950 before incentives

✅ Federal ITC and state rebates improve ROI and payback

When shopping for a home solar system, sometimes the quoted price can leave you wondering why someone would move forward with something that seems so expensive. 

When compared with the status quo, electricity delivered from the utility, the price may not seem so high after all. First, pv magazine will examine the status quo, and how much you can expect to pay for power if you don’t get solar panels. Then, we will examine the average cost of solar arrays today and introduce incentives that boost home solar value.

The cost of doing nothing

Generally, early adopters have financially benefited from going solar by securing price certainty and stemming the impact of steadily increasing utility-bill costs, particularly for energy-insecure households who pay more for electricity.

End-use residential electric customers pay an average of $0.138/kWh in the United States, according to the Energy Information Administration (EIA). In California, that rate is $0.256/kWh, it averages $0.246/kWh across New England, $0.126/kWh in the South Atlantic region, and $0.124/kWh in the Mountain West region.

EIA reports that the average home uses 893 kWh per month, so based on the average retail rate of $0.138/kWh, that’s an electric bill of about $123 monthly, or $229 monthly in California.

Over the last 20 years, EIA data show that retail electricity prices have increased 59% across the United States, with evidence indicating that renewables are not making electricity more expensive, suggesting other factors have driven costs higher, or 2.95% each year.

This means based on historical rates, the average US homeowner can expect to pay $39,460 over the next 20 years on electricity bills. On average, Californians could pay $73,465 over 20 years.

Recent global events show just how unstable prices can be for commodities, and energy is no exception here, with solar panel sales doubling in the UK as homeowners look to cut soaring bills. What will your utility bill cost in 20 years?

These estimated bills also assume that energy use in the home is constant over 20 years, but as the United States electrifies its homes, adds more devices, and adopts electric vehicles, it is fair to expect that many homeowners will use more electricity going forward.

Another factor that may exacerbate rate raising is the upgrade of the national transmission grid. The infrastructure that delivers power to our homes is aging and in need of critical upgrades, and it is estimated that a staggering $500 billion will be spent on transmission buildout by 2035. This half-trillion-dollar cost gets passed down to homeowners in the form of raised utility bill rates.

The benefit of backup power may increase as time goes on as well. Power outages are on the rise across the United States, and recent assessments of the risk of power outages underscore that outages related to severe weather events have doubled in the last 20 years. Climate change-fueled storms are expected to continue to rise, so the role of battery backup in providing reliable energy may increase significantly.

The truth is, we don’t know how much power will cost in 20 years. Though it has increased 59% across the nation in the last 20 years, there is no way to be certain what it will cost going forward. That is where solar has a benefit over the status quo. By purchasing solar, you are securing price certainty going forward, making it easier to budget and plan for the future.

So how do these costs compare to going solar?

Cost of solar

As a general trend, prices for solar have fallen. In 2010, it cost about $40,000 to install a residential solar system, and since then, prices have fallen by as much as 70%, and about 37% in the last five years. However, prices have increased slightly in 2022 due to shipping costs, materials costs, and possible tariffs being placed on imported solar goods, and these pressures aren’t expected to be alleviated in the near-term.

When comparing quotes, the best metric for an apples-to-apples comparison is the cost per watt. Price benchmarking by the National Renewable Energy Laboratory shows the average cost per watt for the nation was $2.65/W DC in 2021, and the average system size was 7.15 kW. So, an average system would cost about $18,950. With 12.5 kWh of battery energy storage, the average cost was $4.26/W, representing an average price tag of $30,460 with batteries included.

The prices above do not include any incentives. Currently, the federal government applies a 26% investment tax credit to the system, bringing down system costs for those who qualify to $14,023 without batteries, and $22,540 with batteries. Compared to the potential $39,460 in utility bills, buying a solar system outright in cash appears to show a clear financial benefit.

Many homeowners will need financing to buy a solar system. Shorter terms can achieve rates as low as 2.99% or less, but financing for a 20-year solar loan typically lands between 5% to 8% or more. Based on 20-year, 7% annual percentage rate terms, a $14,000 system would total about $26,000 in loan payments over 20 years, and the system with batteries included would total about $42,000 in loan payments.

Often when you adopt solar, the utility will still charge you a grid access fee even if your system produces 100% of your needs. These vary from utility to utility but are often around $10 a month. Over 20 years, that equates to about $2,400 that you’ll still need to pay to the utility, plus any costs for energy you use beyond what your system provides.

Based on these average figures, a homeowner could expect to see as much as $12,000 in savings with a 20-year financed system. Homeowners in regions whose retail energy price exceeds the national average could see savings in multiples of that figure.

Though in this example batteries appear to be marginally more expensive than the status quo over a 20-year term, they improve the home by adding the crucial service of backup power, and as battery costs continue to fall they are increasingly being approved to participate in grid services, potentially unlocking additional revenue streams for homeowners.

Another thing to note is most solar systems are warranted for 25 years rather than the 20 used in the status quo example. A panel can last a good 35 years, and though it will begin to produce less in old age, any power produced by a panel you own is money back in your pocket.

Incentives and home value

Many states have additional incentives to boost the value of solar, too, and federal proposals to increase solar generation tenfold could remake the U.S. electricity system. Checking the Database of State Incentives for Renewables (DSIRE) will show the incentives available in your state, and a solar representative should be able to walk you through these benefits when you receive a quote. State incentives change frequently and vary widely, and in some cases are quite rich, offering thousands of dollars in additional benefits.

Another factor to consider is home value. A study by Zillow found that solar arrays increase a home value by 4.1% on average. For a $375,000 home, that’s an increase of $15,375 in value. In most states home solar is exempt from property taxes, making it a great way to boost value without paying taxes for it.

Bottom line

We’ve shared a lot of data on national averages and the potential cost of power going forward, but is solar for you? In the past, early adopters have been rewarded for going solar, and celebrate when they see $0 electric bills paid to the utility company.

Each home is different, each utility is different, and each homeowner has different needs, so evaluating whether solar is right for your home will take a little time and analysis. Representatives from solar companies will walk you through this analysis, and it’s generally a good rule of thumb to get at least three quotes for comparison.

A great resource for starting your research is the Solar Calculator developed by informational site SolarReviews. The calculator offers a quote and savings estimate based on local rates and incentives available to your area. The website also features reviews of installers, equipment, and more.

Some people will save tens of thousands of dollars in the long run with solar, while others may witness more modest savings. Solar will also provide the home clean, local energy, and U.S. solar generation is projected to reach 20% by 2050 as capacity expands, making an impact both on mitigating climate change and in supporting local jobs.

One indisputable benefit of solar is that it will offer greater clarity into what your electricity bills will cost over the next couple of decades, rather than leaving you exposed to whatever rates the utility company decides to charge in the future.

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Canada Renewable Power sees Prairie Provinces surge as Canada Energy Regulator projects rising wind, solar, and hydro capacity in Alberta, Saskatchewan, and Manitoba, replacing coal, expanding the grid, and lowering emissions through 2023.

Key Points

A CER outlook on Canada's grid: Prairie wind, solar, and hydro growth replacing coal and cutting emissions by 2023.

✅ Prairie wind, solar capacity surge by 2023

✅ Alberta, Saskatchewan shift from coal to renewables, gas

✅ Manitoba strengthens hydro leadership, low-carbon grid

Canada's Prairie Provinces will lead the country's growth in renewable energy capacity over the next three years, says a new report by the Canada Energy Regulator (CER).

The online report, titled Canada's Renewable Power, says decreased reliance on coal and substantial increases in wind and solar capacity will increase the amount of renewable energy added to the grid in Alberta and Saskatchewan. Meanwhile, Manitoba will strengthen its position as a prominent hydro producer in Canada. The pace of overall renewable energy growth is expected to slow at the national level between 2021 and 2023, in part due to lagging solar demand in some markets, but with strong growth in provinces with a large reliance on fossil fuel generation.

The report explores electricity generation in Canada and provides a short-term outlook for renewable electricity capacity in each province and territory to 2023. It also features a series of interactive visuals that allow for comparison between regions and highlights the diversity of electricity sources across Canada.

Electricity generation from renewable sources is expected to continue increasing as demand for electricity grows and the country continues its transition to a lower-carbon economy. Canada will see gradual declines in overall carbon emissions from electricity generation largely due to Saskatchewan, Alberta, Nova Scotia and New Brunswick replacing coal with renewables and natural gas. The pace of growth beyond 2023 in renewable power will depend on technological developments; consumer preferences; and government policies and programs.

Canada is a world leader in renewable power, generating almost two-thirds of its electricity from renewables with hydro as the dominant source, and the country ranks in the top 10 for hydropower jobs worldwide. Canada also has one of the world's lowest carbon intensities for electricity.

The CER produces neutral and fact-based energy analysis to inform the energy conversation in Canada. This report is part of a portfolio of publications on energy supply, demand and infrastructure that the CER publishes regularly as part of its ongoing market monitoring.

Report highlights

• Wind capacity in Saskatchewan is projected to triple and nearly double in Alberta between 2020 and 2023 as wind power becomes more competitive in the market. Significant solar capacity growth is also projected, with Alberta adding 1,200 MW by 2023, as Canada approaches a 5 GW solar milestone by that time.
• In Alberta, the share of renewables in the capacity mix is expected to increase from 16% in 2017 to 26% by 2023, with a renewable energy surge supporting thousands of jobs. Similarly, Saskatchewan's renewable share of capacity is expected to increase from 25% in 2018 to 33% in 2023.
• Renewable capacity growth slows most notably in Ontario, where policy changes have scaled back growth projections. Between 2010 and 2017, renewable capacity grew 6.8% per year. Between 2018 and 2023, growth in Ontario slows to 0.4% per year as capacity grows by 466 MW over this period.
• New large-scale hydro, wind, and solar projects will push the share of renewables in Canada's electricity mix from 67% of installed capacity in 2017 to 71% in 2023.
• Hydro is the dominant source of electricity in Canada accounting for 55% of total installed capacity and 59% of generation, though Alberta's limited hydro stands as a notable exception, with B.C., Manitoba, Quebec, Newfoundland and Labrador, and Yukon deriving more than 90% of their power from hydro.
• The jurisdictions with the highest percentage of non-hydro renewable electricity generation are PEI (100%), Nova Scotia (15.8%), and Ontario (10.5%).
• In 2010, 62.8% of Canada's total electricity generation (364 681 GW‧h) was from renewable sources. By 2018, 66.2% (425 722 GW‧h) was from renewable sources and projected to be 71.0% by 2023.

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Electricity Alliance Canada champions clean power, electrification, and net-zero, uniting renewable energy, hydropower, nuclear, wind, and solar to decarbonize Canada with sustainable, reliable, affordable electricity across sectors by 2050, economywide growth.

Key Points

A national coalition advancing clean power and electrification to help achieve Canada's net-zero by 2050.

✅ Coalition of six Canadian electricity associations

✅ Promotes electrification and clean, reliable power

✅ Aims net-zero by 2050, coal phase-out by 2030

Six of Canada’s leading electricity associations have created a coalition to promote clean power’s role, amid a looming power challenge for the country, in a sustainable energy future.

The Electricity Alliance Canada’s mandate is to enable, promote and advocate for increased low or no-carbon electricity usage throughout the economy to help achieve the nation’s net-zero emissions target of 100 percent by 2050, with net-zero electricity regulations permitting some natural gas generation along the way.

The founding members are the Canadian Electricity Association, the Canadian Nuclear Association, the Canadian Renewable Energy Association, Electricity Human Resources Canada, Marine Renewables Canada, and WaterPower Canada, and they aim to incorporate lessons from Europe's power crisis as collaboration advances.

“Electricity will power Canada’s energy transition and create many new well-paying jobs,” reads the joint statement by the six entities. “We are pleased to announce this enhanced collaboration to advance discussion and implement strategies that promote greater electrification in a way that is sustainable, reliable and affordable. Electricity Alliance Canada looks forward to working with governments and energy users to capture the full potential of electricity to contribute to Canada’s net-zero target.”

Canada is much further along than many nations when it comes decarbonizing its power generation sector, yet it is expected to miss 2035 clean electricity goals without accelerated efforts. More than 80 percent of its electricity mix is fueled by non-emitting hydroelectric and nuclear as well as wind, solar and marine renewable generation, according to the Alliance. By contrast, the U.S. portion of non-emitting electricity resources is closer to 40 percent or less.

The remainder of its coal-fired power plants are scheduled to be phased out by 2030, according to reports, though scrapping coal-fired electricity could be costly and ineffective according to one report.

Hydropower leads the way in Canada, with nearly 500 generating plant producing an average of 355 TWh per year, according to the Canadian Hydropower Association. Nuclear plants such as Ontario Power Generation’s Darlington station and Bruce Power also contribute massive-scale and carbon-free electricity capacity, as debates over Ontario's renewable future continue.

Observers note that clean, affordable electricity in Ontario should be a prominent election issue this year.

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Electric Vehicles deliver longer range, faster charging, and broader price options, with incentives and lease deals reducing costs; evaluate performance, home charging, road trip needs, and vehicle types like SUVs, pickups, and vans.

Key Points

Electric vehicles are battery-powered cars that cut costs, boost performance, and charge at home or at fast stations.

✅ Longer range and faster charging reduce range anxiety

✅ Lower operating costs vs gas: fuel, maintenance, incentives

✅ Home Level 2 charging recommended; plan for road trips

Electric cars now drive farther, charge faster and come in nearly every price range. But when GMC began promoting its Hummer EV pickup truck to be released this year, it became even clearer that electric cars are primed to go mainstream for many buyers.

Once the domain of environmentalists, then early adopters, electric vehicles may soon have even truck bros kicking the gasoline habit, though sales are still behind gas cars in many markets.

With many models now available or coming soon — and arriving ahead of schedule for several automakers — including a knockoff of the lovable Volkswagen Microbus — you may be wondering if it’s finally time to buy or lease one.

Here are the essential questions to answer before you do.

(Full disclosure: I’m a convert myself after six years and 70,000 gas-free miles.)

1. Can you afford an electric car?
Electric vehicles tend to be pricy to buy but can be more affordable to lease. Finding federal, state and local government incentives can also reduce sticker shock. And, even if the monthly payment is higher than a comparable gas car, operating costs are lower.

Gas vehicles cost an average of $3,356 per year to fuel, tax and insure, while electric cost just $2,722, according to a study by Self Financial, and Consumer Reports finds EVs save money in the long run too. Find out how much you can save with the Department of Energy calculator.

2. How far do you need to drive on a single charge?
Although almost 60 percent of all car trips in America were less than 6 miles in 2017, according to the Department of Energy, the phrase “range anxiety” scared many would-be early adopters.

Teslas became popular in part because they offered 250 miles of range. But the range of many electric vehicles between charges is now over 200 miles; even the modestly priced Chevrolet Bolt can travel 259 miles on a single charge.

Still, electric vehicles have a “road trip problem,” according to Josh Sadlier, director of content strategy for car site Edmunds.com. “If you like road trips, you almost have to have two cars — one for around town and one for longer trips,” he says.

3. Where will you charge it?
If you live in an apartment without a charging station, this could be a deal breaker.

The number of public chargers increased by 60 percent worldwide in 2019, according to the International Energy Agency. While these stations — some of which are free — are more available, most electric vehicle owners install a home station for faster charging.

Electric vehicles can be charged by plugging into a common 120-volt household outlet, but it’s slow, and understanding charging costs can help you plan home use. To speed up charging, many electric vehicle owners wind up buying a 240-volt charging station and having an electrician install it for a total cost of $1,200, according to the home remodeling website Fixr.

4. What will you use the car for?
While there are a few luxury electric SUVs on the market, most electric vehicles are smaller sedans or hatchbacks with limited cargo capacity. However, the coming wave of electric cars are more versatile, and many experts expect that within a decade these options will be commonplace, including vans, such as the Microbus, and trucks, such as an electric version of the popular Ford F-150 pickup.

5. Do you enjoy performance?
This is where electric vehicles really shine. According to automotive experts, electric cars beat their gas counterparts in these ways:

Immediate response with great low-end acceleration, particularly in the 0-30 mph range.
Sure-footed handling due to the heavy battery mounted under the car, giving it a low center of gravity.
No “shift shock” from changing gears in a conventional gas car’s transmission.
Little noise except from the wind and tires.

Other factors
Once you consider the big questions, here are other reasons to make an electric car your next choice:

Reduced environmental guilt. There is a persistent myth that electric vehicles simply move the emissions from the tailpipe to the power generating station. Yes, producing electricity produces emissions, but many electric vehicle owners charge at night when much of the electricity would otherwise be unused. According to research published by the BBC and evidence that they are better for the planet in many scenarios electric cars reduce emissions by an average of 70 percent, depending on where people live.

Less time refueling. It takes only seconds to plug in at home, and the electric vehicle will recharge while you’re doing other things. No more searching for gas stations and standing by as your tank gulps down gasoline.

No oil changes. Dealers like a constant stream of drivers coming in for oil changes so they can upsell other services. Electric vehicles have fewer moving parts and require fewer trips to the dealership for maintenance.

Carpool lanes and other perks. Check your state regulations to see if an electric vehicle gets you access to the carpool lane, free parking or other special advantages.

Enjoy the technology. Yes, electric vehicles are more expensive, but they also tend to offer top-of-the-line comfort, safety features and technology compared with their gas counterparts.

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US Grid Decarbonization demands balancing renewables, reliability, and resilience with smart transmission, storage, siting, and demand response, leveraging digital asset management to modernize infrastructure while meeting climate goals and rising electricity consumption.

Key Points

Low-carbon power while maintaining reliability via renewables, storage, transmission, and digital operations.

✅ Siting wind and solar requires community engagement and environmental review

✅ Balance variable renewables with storage, flexible load, and firm capacity

✅ Modernize transmission and digitize asset data for reliable operations

Last week, over 13,000 energy and technology leaders arrived in Dallas for DISTRIBUTECH International to share knowledge, showcase new technology advancements, and discuss initiatives to prepare for the future of energy. Among the many topics discussed was the critical need to balance rising energy demands and environmental pressures while understanding why the grid isn't 100% renewable today alongside effective climate change solutions.

The most widespread source of energy consumption is electricity. According to The U.S. Energy Information Administration, 2020 electricity consumption rates were roughly 3.8 trillion kWh - 13 times higher than in 1950. With our ever-increasing reliance on electricity, renewables' share of generation is also rising and this number is sure to grow exponentially in the coming years.

How can the US achieve meaningful decarbonization goals without sacrificing reliable and stable energy? Here are 4 of the biggest challenges and practical ways to meet them:

Siting New Solar and Wind Farms
Building renewable energy sources is more difficult than it seems. Scouting for sites is fraught with issues such as community opposition due to local aesthetics and clean energy's hidden costs around disruption to the environment and recreation.

NIMBY (Not In My Backyard) is an influential source of opposition. Local residents join together in an effort to prevent shore front views in wealthy coastal areas from obstruction, which are needed to support offshore wind farms. These farms can also negatively impact local fisheries, while outdoor sports and entertainment activities such as sailing, waterskiing, fishing, or swimming may be disrupted, which are equally opposed by NIMBY advocates.

Utilities must take these concerns into account when scouting for renewable energy sites.

Maintaining Consistent Availability of Generation Capacity
The capacity to generate consistent, reliable electricity is both a regional and nationwide concern.

Wind and solar farms depend on a consistent level of wind velocity and sunny periods, yet wind and solar could meet 80% of U.S. demand and regional concerns must be considered. For example, the southwestern United States is an ideal location for large commercial solar arrays. Areas in the north are more problematic since fall and winter days are shorter, reducing their ability to consistently generate energy. The Midwest is a prime location for wind-based generation since it experiences a consistent level of wind throughout the year.

Nighttime periods and cloudy days virtually eliminate solar farms as a consistent energy source while loss of available winds impacts the reliability of wind as a base load supply of energy generation.

Pivoting From Current Energy Usage Models
Over the last 20 years, utilities have been heavily involved with normalizing consumer energy consumption curves, pursuing grid resilience strategies to manage variability. Due to the high cost of siting new fossil fuel facilities, building new electric grid interconnections, and the high commodity pricing for imported power, utilities were driven to modify their customers’ energy usage patterns.

These consumption regulating policies included:

• Time of use metering to entice customers to use high energy devices at night
• Installation of energy monitoring devices on high use customer equipment to enable the utility to reduce energy demand during peak use periods
• Charging electric vehicles overnight

With fundamental changes occurring in how energy is generated, the availability of renewable power during low or no-sun periods and lower wind levels will require utilities to alter their energy consumption models.

Utilizing Government Support of New Electric Infrastructure
With the proposed government infusion of funds, including a rule to boost renewable transmission, to build and modernize infrastructures, utility leaders will be ideally positioned to drastically improve the reliability of the US electric grid.

Utilities will be involved in aggressive transmission line building projects to ensure the effective distribution of energy across multiple state lines, aligning with the U.S. grid overhaul for renewables underway today. This expansive build out of the US transmission and distribution system will create a dramatic increase in the need to accurately document the location and details of the new utility assets for current tracking and future analysis needs.

Energy leaders must seek advanced technology to provide them with solutions for precisely this purpose. Manual, paper-based field data collection must be replaced with digital workflows which automate and simplify asset data capture and analysis. Continued reliance on manual methods will cause them to lag behind the industry and impede their ability to support renewable energy for the modern era.

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Ontario Renewable Energy Procurement 2024 will see the IESO secure wind, solar, and hydro power to meet rising electricity demand, support transit electrification, bolster grid reliability, and serve manufacturing growth across the province.

Key Points

A provincial IESO initiative to add 2,000 MW of clean power and plan 3,000 MW more to meet rising demand.

✅ IESO to procure 2,000 MW from wind, solar, hydro

✅ Exploring 3,000 MW via upgrades and expansions

✅ Demand growth ~2% yearly; electrification and industry

After the Ford government terminated renewable energy contracts five years ago, despite warnings about wind project cancellation costs that year, Ontario's electricity operator, the Independent Electricity System Operator (IESO), is now planning to once again incorporate wind and solar initiatives to address the province's increasing power demands.

The IESO, responsible for managing the provincial power supply, is set to secure 2,000 megawatts of electricity from clean sources, which include wind, solar, and hydro power, as wind power competitiveness increases across Canada. Additionally, the IESO is exploring the possibilities of reacquiring, upgrading, or expanding existing facilities to generate an additional 3,000 MW of electricity in the future.

These new power procurement efforts in Ontario aim to meet the rising energy demand driven by transit electrification and large-scale manufacturing projects, even as national renewable growth projections were scaled back after Ontario scrapped its clean energy program, which are expected to exert greater pressure on the provincial grid.

The IESO projects a consistent growth in demand of approximately two percent per year over the next two decades. This growth has prompted the Ford government, amid debate over Ontario's electricity future in the province, to take proactive measures to prevent potential blackouts or disruptions for both residential and commercial consumers.

This renewed commitment to renewable energy represents a significant policy shift for Premier Doug Ford, reflecting his new stance on wind power over time, who had previously voiced strong opposition to wind turbines and pledged to dismantle all windmills in the province. In 2018, shortly after taking office, the government terminated 750 renewable energy contracts that had been signed by the previous Liberal government, incurring fees of $230 million for taxpayers.

At the time, the government cited reasons such as surplus electricity supply and increased costs for ratepayers as grounds for contract cancellations. Premier Ford expressed pride in the decision, echoing a proud of cancelling contracts stance, claiming that it saved taxpayers $790 million and eliminated what he viewed as detrimental wind turbines that had negatively impacted the province's energy landscape for 15 years.

The Ontario government's new wind and solar energy procurement initiatives are scheduled to commence in 2024, following a court ruling on a Cornwall wind farm that spotlighted cancellation decisions.

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