Heat Wave: Power Bills and Power Options
During the U.S.’s initial spring lockdown, the weather was rather temperate in most areas of the country. By the time COVID-19 outbreaks started becoming more rampant nationwide, summer was in full swing. This made for uncomfortable conditions in terms of social distancing guidelines. For example, the pandemic forced hundreds of restaurants to seat more patrons outside — right about the time a heat wave swept the country.1
Expenses like future energy bills are worth considering as part of your retirement income plan, because they can cause your household bills to fluctuate once you’re on a fixed income. Consider investments in your home you can make now to help curb bills, power grid shutdowns or both. We can help you with creating your long-term budget to help you determine your future retirement income needs. Contact us to learn more.
Because this summer was particularly harsh in many areas of the country, the demand for air-conditioning increased. This tends to boost our carbon emissions footprint, which in turn contributes to global warming and extreme weather events. It is a bit of a vicious cycle.
According to the Netherlands Environmental Assessment Agency, the global demand for heating energy is expected to rise throughout the short term, and then level off around 2030. However, the energy demand for air conditioning is expected to increase rapidly all the way until 2100, even surpassing energy demand for heating by the middle of this century.2
Worldwide, there are currently about 2 billion air conditioning units in operation — mostly in residential buildings. In the U.S., 87% of homes use air conditioning. About one third of our energy bills represent heating or cooling; in some areas it’s more than half. On an individual household basis, residents can save 3 to 5% in air conditioning expenses per each degree increase on the thermostat.3
One of the newer innovations in electric grid savings is the use of battery packs to store energy sources, including energy absorbed by solar panels. Not only can this help your own house maintain a desired temperature, but less usage can help reduce strain on your local power grid. The use of battery storage is increasing rapidly as commercial and industrial companies are using up to five times more energy storage resources this year than the previous year. This has helped reduce peak electricity demand this summer in densely populated states like New York, California and Massachusetts.4
Energy storage units use distributed energy resource (DER) optimization software to reduce energy by switching to the storage system at peak times instead of siphoning power from the grid. This type of software uses machine learning to determine a facility’s behavior and anticipate electricity consumption, which is saved into the software’s algorithm. By continuously evaluating this information within the context of market prices, utility rates, demand response, demand charges and battery storage, the software transfers usage to energy storage resources during times when it is most financially prudent.5
Content prepared by Kara Stefan Communications.
1 Joe Little. NBC San Diego. Aug. 17, 2020. “Businesses Try to Keep Their Cool During a Heat Wave and Pandemic.” https://www.nbcsandiego.com/news/local/businesses-try-to-keep-their-cool-during-a-heat-wave-and-pandemic/2387113/. Accessed Aug. 17, 2020.
2 Claudia Vergueiro Massei. World Economic Forum. Aug. 17, 2020. “3 ways to keep ourselves cool more sustainably.” https://www.weforum.org/agenda/2020/08/3-ways-to-cool-us-down-more-sustainably/. Accessed Aug. 17, 2020.
4 Jennifer Runyon. Power Grid International. Aug. 4, 2020. “Enel X: Battery storage deployment up 22% over 2019.” https://www.power-grid.com/2020/08/04/enel-x-battery-storage-deployment-up-22-over-2019/. Accessed Aug. 17, 2020.
Communications such as this are not impartial and are provided in connection with advertising and marketing of the financial services offered by Guardian Capital Management, LLC. Guardian Capital Management, LLC is not an attorney or a tax professional and the information contained herein should not be considered tax or accounting advice, legal or regulatory advice.
The information provided herein is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor’s own situation. Guardian Capital Management, LLC offers investment advice through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe”). Belpointe is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe offers, or that or its personnel possess a particular level of skill, expertise or training. Insurance products are offered through Guardian Resources. Important information and disclosures related to Belpointe are available at http://www.belpointe.com. Additional information pertaining to Guardian Capital Management, LLC and/or Belpointe’s registration status, its business operations, services and fees and its current written disclosure statement is available on the SEC’s Investment Adviser public website at https://www.adviserinfo.sec.gov/.
Ready to Take The Next Step?
For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.