As we work to reverse the negative effects of global climate change, we have been increasingly turning to renewable energy sources. One of the arguments commonly made for why we should stick with coal and more traditional energy sources is that they are cheaper than the renewable alternatives. Every day, however, improved renewable technology is improving both efficiency and cost-effectiveness, and in many cases, renewable energy is cheaper than coal.
Not only is renewable energy often cheaper, but much of the cost is made up for with the economic growth that can come from using renewable energy sources. According to Tina Smith, Minnesota’s lieutenant governor, renewable energy has created “$1 billion in economic activity over the last 10 years” in Minnesota, where more than 21% of the state’s electricity comes from renewable energy. Clearly, it is very possible that a switch to renewable energy would have economic benefits.
The primary costs related to wind and solar energy come with installing the turbines and solar panels and then with the distribution of the energy. Harnessing the energy itself is free, as the sun and wind are natural parts of the environment. As the technology improves, costs are going down in all areas, and as a result of this, “the total cost of renewable energy is competitive with carbon-based fuel, and many times actually costs less.” Moreover, there are many tax breaks offered for renewable energy. A tax calculator can help determine how much of a break you may be entitled too. The improved technology also means that renewable energy is more reliable than ever before, making it even more appealing.
Even more amazingly, it appears that wind energy specifically is so much cheaper than coal that it could save customers of Xcel Energy, an energy company in the Midwest that sees wind energy as the future, $7.9 billion over the next thirty years. Moody’s Investor Services has surveyed 87 GW of coal power and found that wind power threatens 56 of those GW due to its falling costs. In the Great Plains region, where coal costs $30 per MW-hour, wind costs $20. This difference makes it easy to see why saving nearly $8 billion is a real possibility for wind energy users in the Great Plains. According to Gregory Brew, it is “economic, not environmental logic that is driving utilities to adopt wind power, as Xcel plans to do.” In other words, the phrase “cheap energy” appeals far more to consumers than “clean energy.”
With all of the economic and environmental benefits provided by renewable energy sources, it is becoming increasingly difficult to remain a loyal coal supporter. As more and more states set ambitious goals about their energy use, there will be increased pressure on those that remain to do the same. Hopefully, the falling costs of renewable energy will be enough to convince skeptics that if they do not want to support renewable energy for the purpose of halting climate change, then they should support it to save and even make money.
