American property owners need solar now more than ever.
Historically, demand for electricity has been pretty stagnant. Over the past fifty years, the average energy rates have gone up about 4% per year right along with inflation, and service has been incredibly reliable. For most Americans, power outages haven’t really been a major problem. Those days are over, and the U.S. is entering a period of intense demand increase. A recent report from Grid Strategies sheds light on this unprecedented growth, outlining the factors driving this surge and the unpreparedness of the electric grid to handle such a substantial increase in demand. This unpreparedness can spell problems for home and business owners alike. Owning local renewable energy generating assets is quickly becoming the best possible way for property owners to protect their energy futures. Installing solar panels will not only save money, but “future proof” properties to avoid this unpreparedness.
So how bad is this problem? Well, according to the report titled "The Era of Flat Power Demand is Over," the growth in electric load, particularly spurred by new manufacturing and industrial sectors alongside the exponential expansion of data centers, has severely outpaced the expectations of grid planners. Forecasts filed with the Federal Energy Regulatory Commission reveal a staggering 4.7% projected increase in nationwide electricity demand over the next five years. This sharp rise stands in stark contrast to the previously estimated 2.6% growth for 2022, indicating a significant acceleration. How much exactly is that 4.6% growth? 38 gigawatts through 2028. That is enough power to supply over 20 million homes with energy.
Grid Strategies President, Rob Gramlich, emphasizes that this shift marks a critical turning point, underscoring the challenges awaiting the electric sector. "The low and falling levels of load growth for the last 20 years have decisively reversed to a new mode," Gramlich asserts, highlighting the inadequacy of the current grid infrastructure to cope with such escalated demand. Without the proper infrastructure, home owners are likely to continue suffering record breaking black out years.
The primary drivers behind this immediate surge are substantial investments totaling around $630 billion, primarily allocated to high-load facilities. Manufacturing and industrial sectors are earmarked to receive $481 billion, while $150 billion is dedicated to the burgeoning expansion of data centers. Initiatives aimed at revitalizing domestic manufacturing, like the CHIPS and Science Act, are already exhibiting tangible effects. Simultaneously, the increasing reliance on artificial intelligence is propelling the power needs of data centers to new heights. And the worst part is: these trends are just getting started.
Beyond these immediate drivers, other factors such as the electrification of transportation and buildings, investments in hydrogen production, and the intensification of severe weather patterns contribute significantly to this burgeoning demand. There are also increased cyber attacks on America’s infrastructure, that constantly threaten to grind entire regions to a halt. The Department of Energy saw a steep rise in these such attacks through the first half of 2023.
However, the report starkly warns about the grid's unpreparedness to accommodate this surge, stressing the risk of overspending on generation in the absence of adequate transmission infrastructure. Grid Strategies highlights the critical role of high-voltage transmission lines in alleviating grid stress and enabling integration of clean energy sources. Yet, recent trends indicate a decline in the construction of such essential infrastructure, posing a potential bottleneck in meeting escalating demand.
The urgency to address this demand surge lies not just in catering to the immediate needs but also in strategizing for a sustainable and resilient future. Simon Mahan of the Southern Renewable Energy Association aptly points out the irony in this situation—a surge in demand for clean, zero-carbon energy juxtaposed with potential short-term solutions that might resort to fossil fuel-based generation. The fact of the matter is the environment simply can not afford to meet this need with anything other than clean energy. So what can property owners do to get in front of these troubling trends? Solar panel installation is the way out of the potential grid mess.
The report's conclusion emphasizes the imperative need for increased transmission capacity as a more cost-effective solution to ensure reliability amidst this unprecedented demand surge. Will America and its leaders meet this challenge and overhaul the grid in a much needed way? Hopefully so, but there is still another option for home and business owners that don’t want to wait around and find out. Solar for your home or business not only saves you money, it gives you more control over your energy future. Energy equity through purchasing of local renewable energy assets, like solar panels, can help distribute power at the local level. Homes and businesses with solar and battery storage can rest assured that when grid issues occur, they will be taken care of.
The exponential growth in electricity demand, driven by diverse sectors and technological advancements, presents both challenges and opportunities for the U.S. electric grid. Urgent action and strategic planning are imperative to address this surge, ensuring a reliable, sustainable, and resilient energy future for the nation. And of course, what can home and business owners do at a local, single property level, to help out and avoid issues? Lead by example and install solar panels!
