July 2, 2013 admin

Wholesale Electricity Prices and the US Carbon Tax

carbon-taxThe Obama administration is waging a War on Coal™ in the US but it offers an amazing benefit to mankind.

As you can see in the Australian example which implemented their War on Coal™ on July 1st 2012 they saw their wholesale electricity prices rise by about 40 % in price.

Now I know this is a lot of money but think of the benefits, a price for electricity that almost doubles in the near term and the promise that by year 2100 the world might be 0.02°C cooler.

The poorest among us will suffer with an essential service like electricity that increases in price yearly but their grandchildren will benefit from the two hundredths of a degree cooler earth temperature they get to see a century from now.

All kidding aside we do see one benefit in all of this war on coal nonsense. If you can cash in on a rooftop solar system while the government is handing out large incentives you could subsidize the higher price you pay your electric utility with your cheaper solar price.

A home Photovoltaic roof top systems with government and electric utility tax incentives is the only way to go right now because without the incentives it just simply costs too much. With a higher price for coal generated electricity some of us will start installing solar and that might even include myself.

So long as the government provides a way to buy solar at a good price and receive payment for solar power when we send excess power back on the grid it could help keep electricity prices tolerable.

The main problem is that the government eventually runs out of money on these solar incentives and so after a few years people may be out of luck on buying an affordable system.

In summary, here in Texas most of us will have to settle for a grid tie in system that must still rely on the electric utility grid to power our air conditioner while solar powers everything else. Very few of us can afford the large investment in a totally off-the-grid system and so we will still be at the mercy of the higher price of electricity that keeps our air conditioner running at the CO² taxed electricity price. It’s worth noting that the Australian tax is $23 per metric ton while Obama is pushing for a $25 per metric ton carbon tax for the U.S. The congressional budget office (CBO) predicted that a $28 per metric ton tax on emissions would increase low-income families annual electric bill about $425 on top of what they pay now and believe me they won’t be buying a solar system.

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

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