Climate Change Causing Water Shortages, Displacement and Rising Electricity Costs in the United States: What Can You Do?

With weather pattern alterations across the United States occurring due to climate change, there have been a series of horrific news stories about its impact on some of our nation’s most iconic features, our native tribes and homeowners just like you.

Did you know that one of America’s largest reservoirs, Lake Mead, is draining rapidly? Lake Mead is currently 143 feet below “full,” affecting the 25 million people who rely on it for their daily lives. Even our Native American lands are being damaged by climate change, making many communities uninhabitable (or unviable in the years to come). To top it all off, energy prices have increased by 24% since 2021.[1]

One easy way to cut down on the rising cost of electricity is to invest in clean, money-saving solar panels. If you want to see if solar can help you lower your electricity costs, please give us a call at 1-888-MOMENTUM to get started on your solar energy project.

Want to learn more about the effect climate change is having across the country? Continue reading.

What Does the Water Shortage Mean?

In June of last year, Lake Mead recorded lower levels than average, and it only worsens as each day tick by. It’s now the lowest it has ever been since the lake was filled in the 1930s. Lake Mead is roughly 1,070 feet below sea level and, with the effect of climate change, now roughly 145 feet below “full”. This is the equivalent of the height of the Statue of Liberty.[1] As a result of this evaporation, millions of people will be affected in the next decade.

We know this sounds scary, and truthfully, it’s not great news. If you’re not sure how this related to climate change, we’ve got you covered.

The Hoover Dam, which forms the Lake Mead reservoir, produces 2,000 megawatts of hydropower per year. However, with the recent drought and evaporation of the lake, the Hoover Dam’s power generation is down a staggering 25 percent. This decline will affect many states, including California, Arizona and Nevada. All of these states get a portion of their energy from the Hoover Dam. Without that energy supply, they’ll be forced to rely on less “green” methods of generating electricity.[2]

If the lake reaches the “level at 895 feet, water will no longer flow through the dam, and anyone downstream will be cut off from its precious water.

What are the side effects of the Hoover Dam’s energy production being cut? According to, “the US Bureau of Reclamation. Without the dam’s electricity, Southwest energy suppliers will have to look to fossil fuel energy to fill the void.”[3] For homeowners and other residents of the community that rely on this energy supply to power their homes or businesses, this could mean even higher utility prices.[4] 

How Are Our Native Lands Being Impacted?

From Alaska to Florida and every state in between, Native Americans have been facing severe climate challenges. Native tribes are now experiencing an environmental issue that stems from the original European settlers, and later, the United States government, that forced them onto some of our favorable lands.[5]

With the threat of climate change, these lands are now becoming truly uninhabitable. Native Americans are face the threat of losing their homes once again. Severe drought in the Southwest is threatening the drinking water supply of the Navajo Nation. At the edge of the Ozarks, Cherokee crops are becoming harder to grow. These are just a few of the issues that our Native American population is facing from coast to coast. Recently, the Quileute Nation in Washington state has been looking to move to higher ground as the rise in temperature has caused the atmosphere to hold more water, producing more frequent and intense storms. The high winds regularly knock out the tribe’s power, and homes along main streets and roadways are vulnerable to flooding. These severe storms can sometimes render the single road that connects the tribe to the outside world impassable.[3]

In a recent statement from Doug Woodruff, chairmen of the Quileute Tribal Council, “Climate change has forced us to make the heart-wrenching decision to leave the village… Without a cohesive national and international strategy to address climate change, there is little we can do to combat these impacts.”[3]

The impact on our native lands is a clear example that, until we all are willing to make a change to environmentally friendly alternatives, people across the country will continue to lose their land, properties and decades-held homes.

What to Expect with Rising Electricity Costs

According to an August 2022 report from the US Bureau of Labor Statistics, electricity prices are at their highest since 1981, rising 15.8% from 2021. Natural gas bills also began to rise in July and have now gone up 33% from the same month last year.[6]

Now, in the cooler winter months when people are cranking up their thermostats in order to stay warm, electricity costs are climbing yet again due to a rise in pricing of the two largest powerplant fuels: natural gas and coal.

What financial impacts will Americans face as utility prices begin to rise? Here are just a few to note:

  1. Utilities: Data from the Commerce Department shows that Americans “allocate 2.5% towards the heating and cooling of their homes… Household utilities could cost consumers and added $20 to $30 billion this year, representing an approximate 7% to 12% increase.”[7]
  2. Gasoline: Consumers will likely spend about $50 to $75 billion more for gasoline this year (relative to 2021) as gas prices are about $4 per gallon.[7]
  3. Secondary effects: Consumers will face higher transportation and distribution costs for everything from groceries and apparel to furniture and lawn care.[7]
  4. Economic growth: According to research done by Ameriprise Financial, “higher energy prices could cost the U.S. economy about half a percentage point of potential growth this year.”[7]

Here’s How Momentum Can Help

Climate change is a real problem facing millions of Americans’ daily lives, and it’s only going to get worse as inflation, weather pattern changes and energy crises worsen.

Fortunately, Momentum Solar is here to help you create and customize your home’s perfect solar panel system that will not only help you battle rising electricity costs but reduce your personal carbon emission through the generation of cleaner, greener energy as well. Our team will thoughtfully design a system that perfectly fits the needs of your home, environmental goals and wallet.

Ready to make the switch to clean energy? Call us today at 1-888-MOMENTUM or visit our website momentumsolar.com schedule your free, no-obligation consultation today.

 

 

[1] https://www.cnn.com/2021/06/17/us/lake-mead-drought-water-shortage-climate/index.html

[2] https://www.cnn.com/2021/06/17/us/lake-mead-drought-water-shortage-climate/index.html

[3] https://www.cnn.com/2022/08/16/us/hoover-dam-hydropower-drought-climate/index.html

[4] https://wrrc.arizona.edu/drought-diminishes-hydropower

[5] https://www.nytimes.com/2021/06/27/climate/climate-Native-Americans.html

[6] https://www.bloomberg.com/news/articles/2022-09-13/us-electricity-prices-rise-most-in-41-years-as-inflation-endures?leadSource=uverify%20wall

[7] https://www.ameriprise.com/financial-news-research/insights/what-higher-energy-prices-mean-for-us-household

Big Win for the Solar Industry with Tax Credit Extension

This week, Senate voted to pass an important bill for Americans looking to switch to clean energy alternatives, The Inflation Reduction Act (IRA). This bill includes nearly “$400 billion over ten years in funding for climate and energy-related programs, and an extension and improvement of the U.S. electric car tax credit.”[1]

So, where do you begin with all of this tax credit mumbo-jumbo and how will it benefit you? Let’s get into it! Momentum is here to break it down for you.

If you are already an expert on tax credits and solar power and ready to start capitalizing on the benefits, speak with one of our specialists at 1-888-MOMENTUM or click on the “Free Quote” button above!

The Highlights of the Inflation Reduction Act

The Inflation Reduction Act is a “trimmed-down” version of the Build Back Better proposal that was stalled in the Senate several months ago. Once this new version was brought forward, it was passed swiftly, which was a great victory for climate champions. [2]

While this bill includes significant corporate tax and healthcare benefits that could help with inflation over the next decade, the climate portion of the IRA is most notable. This part of the bill represents $369 billion in spending – money to be used to further clean energy alternatives and climate change solutions. [3]

What Does this Mean for the U.S.?

Recent analyses show that the investments in this bill could put the United States on track to reduce our emissions by between 31-44% by 2030. This is a big deal, considering the last time American emissions were this low was 2005.[4]

What Does it Mean for Green Energy?

The IRA isn’t just for electric vehicles; it covers a wide range of green energy products like solar that can help reduce emissions on a global scale.

Below are some of the green energy products receiving funding:

  1. $60 billion for solar panel and wind turbine manufacturing
  2. $30 billion in credits for new projects
  3. $27 billion for clean tech
  4. $20 billion to reduce agricultural emissions
  5. $5 billion for forest conservation
  6. $4 billion for drought funding in Western states

In addition to this funding, there are several credits for home battery storage, an extension of the rooftop solar credit and, of course, the E.V. tax credit.

The ITC Tax Credit and E.V. Tax Credit: What is the Difference?

Each of these tax credits is different, one is for residential solar panel systems, and the other is for electric vehicles. Let’s take a look at the highlights of each, starting with the ITC Tax Credit (Investment Tax Credit).

The ITC Tax Credit

  1. This tax credit has been extended by ten years at 30%[5]
  1. Beginning at 30% and stepping down to 26% in 2033 and down to 22% in 2034
  2. Since this tax credit decreases over the years, it is better to go solar sooner rather than later
  3. This credit applies to residential and commercial solar systems
  4. This tax credit applies to anyone who installed solar technology in 2022
  5. The 30% also applies to energy storage, whether it is co-located or installed as a standalone system

The EV Tax Credit

  1. Also known as the Electric Vehicle Tax Credit
  2. This credit was recently renewed for another decade and will start January 2023 and will last until the end of 2032.
  3. The tax credit itself is $7,500
  4. The previous tax credit had a cap of 200,000 cars per manufacturer, and the new credit removes that cap at the start of 2023
  5. The credit can be applied upfront at the point of sale if purchased from a dealer
  6. All new vehicles, materials and critical materials will be made in the U.S.
  7. Vehicles must have an MSRP of under $55K for cars and $80K for SUVs, trucks and vans, otherwise they don’t count, leaving out several Tesla configurations
  8. Buyers can only take advantage of the credit if they make under $150K a year ($300k filing jointly)

How Can Momentum Solar Help You Go Green? 

Now that green energy is back on the forefront for the U.S. government and consumers thanks to the IRA, it’s time to start capitalizing on its benefits.Our team can help you go solar with a click of a button. We proudly design solar panel systems that fits our customers needs perfectly and help put more money back in their pockets.

But wait, there’s more…literally.

Momentum Solar offers battery storage to create the perfect solar energy system. Whether you are looking to keep the lights on when the power is out or save money during peak electricity rates, we’ve got you covered. With the IRA now in place, you can trust Momentum to help transition your home to green energy.

For more information, please call us at 1-888-MOMENTUM or click on the “Free Quote” button at the top of the page!

 

[1] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[2] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[3] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[4] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[5] https://pv-magazine-usa.com/2022/07/28/solar-investment-tax-credit-to-be-extended-10-years-at-30/

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