Use Solar as a Hedge

Use Solar as a Hedge

Pricing in ERCOT is coming out of a stretch of historic low pricing.  So many customers go used to the low pricing as a norm and are now experiencing sticker shock. Especially those who have supply contracts that expire in 2018 and 2019.  Beyond working to get a low supply contract you should consider solar as a hedge against rising prices.

Right now onsite solar pricing is on par with 3rd party rates, but when you factor in demand cost reductions it is actually cheaper than purchased power.  Solar will not likely cover 100% of your load but why not secure 20-30% of your load with solar?

You will not be alone.  Solar is undergoing a revolution in the USA and Texas is the next prime candidate.

Take a look at this article about how solar is impacting utilities.

Jon Dumas

Jon Dumas is a customer-focused energy management professional, using analysis and market intelligence to help his customers make solid business decisions. All the while sticking to his credo – always do what is right for the client.

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