Pakistan is a developing country and is on the way to development. Like other developing nations, Pakistan faces many challenges, especially in the energy sector. The energy crises have crippled Pakistan’s economy for the past many decades and still every household and business faces energy crises and its regressing effects. The government’s efforts to overcome the energy problems heavily consisted of investment in increasing the production of electricity through conventional methods of burning fossil fuels. This in turn started to degrade Pakistan’s environmental condition, which has grown so much worse that most of the cities’ AQI remains hazardous throughout the year. Solar energy has appeared to the world as an affordable and long-term solution to counter critical global problems of energy and environmental degradation problems. Governments as well as the citizens have started to install solar systems to counter environmental and energy issues. Among all the benefits one of the biggest advantages of solar energy is that it acts as a bulwark against electricity price fluctuations.
Why Do Electricity Prices Fluctuate?
The electricity in Pakistan is mainly produced by the utilization of fossil fuels. There are certain renewable energy power plants such as Quaid-e-Azam solar power plant, Mangla water power plant, and Tarbela water power plant, but most of the energy production is dependent on fossil fuels such as coal, petroleum, gas, and biofuel. The main reasons for the electricity price ups and downs are as follows:
Fuel Price Variations
The fuel price directly affects the electricity bills as the electricity rates go up with the increase in fuel prices and come down with the decrease in the fuel price. The reason is that the fuel is used to produce electricity and thus the fluctuation in the international price of the fuel affects the bill rates of electricity especially in developing countries like Pakistan.
Tax Rates Increase
Taxes are applied on the commodities to generate revenue for the country’s reserve funds. These taxes increase depending on the economic conditions of the country. When the taxes on electricity bills are increased, consumers have to pay more. In Pakistan, in the recent economic turbulence and looming bankruptcy, we have seen a big increase in the taxes that are applied to electricity bills. The worst thing is that you don’t only have to pay the increased unit price but higher taxes as well.
Global Instability
Instability in the world also affects our energy prices. Factors like the Ukraine war are on top of the list in the recent price hikes in the entire world. You simply cannot determine any more that which things will cause the price increase for you. This is how unstable the world dynamics are currently. An earthquake in Japan’s electricity-generating areas may add another buyer to the energy market, causing a price increase. Things like these may seem distant but their impact can hit us harder than we can imagine. With such uncertainty, we need to invest in something that can guarantee better electricity prices for years to come.
How Solar Protects Against The Increasing Electricity Prices?
Fortunately, rooftop solar might be able to help you reduce your rising electricity costs. You won’t need to buy as much electricity from the grid if you have solar panels installed at home. Here is how solar helps protect us against rising electricity rates.
Reduce Your Dependency On The Grid With Free Electricity
You can reduce your electricity bill significantly by switching to solar power. This is because now you are using less power from the grid electricity and more from your panels. You can generate free electricity with your solar system without breaking a sweat. As you generate more free power, it means your grid dependency has reduced. This in turn shows that you are not purchasing more of the expensive grid power which has increasing rates.
For instance, if you produce 70% of your electricity requirements with your solar system. This means you only need to pay for the extra 30% that you take from the grid. Now the increasing price of grid power will only affect you to the extent of the 30% power you buy from the grid. Comparatively, someone without solar will see the increase impacting 100% of their electricity usage.
Net Metering Gives Additional Protection
With the help of a billing system called net metering, solar energy system owners can get paid for any extra electricity they produce and send it back to the grid. Consumers can limit their reliance on the grid and the effects of rising grid electricity prices by using net metering. They obtain credits when their solar energy systems generate more electricity than they use and send the excess to the grid. When their energy usage exceeds what their solar system produces, they can utilize these credits to offset their electricity expenditures.
Customers can rely more on their own solar power generation by using net metering, which reduces the need to buy electricity from the grid at potentially higher prices. As a result, customers can better fulfill their own energy needs and encourage energy independence. In the end, customers can reduce their dependency on the grid, offset the effects of rising grid power prices, and contribute to a more sustainable energy future by utilizing net metering and renewable energy sources.
Go The Extra Mile With Solar Batteries
Solar batteries have a big impact on the fight against rising electricity bills. When there is a strong demand for electricity or when the sun is not shining, solar batteries can be used to store excess energy produced by solar panels. Customers can optimize their energy use, lessen their reliance on the grid, and lessen the impact of rising electricity prices by adding solar batteries to a solar energy system.
Customers can use the energy stored in their solar batteries during peak charge periods when grid electricity rates are high, rather than buying it from the grid. By using the stored energy, which was produced while electricity bills were lower, they are able to save money. Solar batteries also improve energy independence by supplying a steady and continuous source of power even during grid outages or other disruptions. Consumers can effectively resist rising electricity rates, maximize the use of their solar energy, reduce their reliance on grid power, and embrace a more resilient and sustainable energy future by investing in solar batteries.
If you are tired of the increasing electricity costs and having to pay higher bills, Switch to Solar to make the change. Contact Premier Energy and we will ensure that you invest in the best solar system to protect you against energy inflation.
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