How Much Energy is Your Water Heater Using?

Out of all the appliances in your home the water heater can be using most of your energy. According to the Department of Energy the water heater uses on average 17% of an American households energy. Typically, an electric hot water heater uses $438 worth of energy a year compared to a gas water heater which is around $224. Gas is usually cheaper but it is still a fossil fuel and cannot be supported by a solar system. Tankless water heaters are usually 20%-30% more efficient as well. Some keys to keeping your water heater bill down is to turn the thermostat down to 120 degrees, take quick showers/turn the water off while soaping up, install low flow water heads, insulate your tank, upgrade to a more efficient model, and be conscious at all times with how water is being used.

Shell Making A Huge Shift to Renewables

Shell is not being shy when it comes to ensuring a powerful transition into renewable energy production. Maarten Wetselaar, the director of Shell’s integrated gas and new energies division, thinks his company could become the largest power company in the world by the early 2030s. “It's mostly driven by the, we think, irreversible choice the world has made to decarbonize, to address climate change, and to go to [a] net-zero energy system,” he said in an interview last week. “And by far, the easiest form of energy consumption that can be carbon-free is electricity. So to an extent, it's about survival, but it's also about, of course, playing a positive role in energy transition. We see the two as equally powerful.”

Even though Shell is the #2 oil explorer by market value they are now spending around $2 billion a year in cleantech so it looks like an honest effort to transition. “They (Shell Official) realize that energy is a big task, and it needs big companies with big balance sheets to really go after it,” Wetselaar said. “You can't just subsidize your way into it, or do it through startups only. It needs also the power of big companies.” “If I build an oil platform of $10 billion, it will cost me $10 billion,” he said. “If I build a wind farm that costs $10 billion, it's typically 75 percent...financed by banks, and I'll typically have partners in it that fund half. So my $1 billion can actually give rise to a $10 billion wind farm. […] So there's a bigger multiplier to our investment there.”

Federal Tax Credit for Residential Solar Systems May Be Extended

As of now the Federal Tax Credit for a residential solar system is 30% of the total cost and is planned to drop to 26% next year. Last month law makers proposed a bill that would keep the tax credit at 30% for another five years so there is hope. SunPower CEO Tom Werner now puts the odds of this happening at 30% while it was 0% at the beginning of 2019. Sunrun CEO Lynn Jurich is not banking on the bill passing and is continuing to prepare for the worst. Greg Jenner, a tax lawyer, said that the recently introduced extender bills "face fairly long odds" as 2019 draws to a close. "Passage of any tax legislation during a presidential election cycle is problematic, and perhaps even more so this election," said Jenner. "The only tax legislation likely to pass, if any, is a bill to extend tax provisions that have or are about to expire. Even then, the chances are that this would only occur as part of a larger appropriations package and not as freestanding legislation." David Bywater, Vivint’s CEO said, “The fossil fuel industry has benefited from direct and indirect support for well over a century, and the renewable energy industry that is employing so many Americans deserves a level playing field,” said Bywater on the call. “Because Americans value pollution-free power, job creation and energy independence, extending the ITC will enable the solar industry to continue its growth and bring the economic and environmental benefits of renewable solar energy and solar jobs to all regions of America.”

Due to all of this speculation the safest best for homeowners is to take advantage of the 30% tax credit right now because there’s a high chance it will be lowered at the beginning of 2020. Check us out at AllyElectricandSolar.com for a smooth ride to energy independence!