Costs of Switching from Natural Gas to Renewable Energy in New York City
Renewable energy options are increasing rapidly in New York City. Today, over 20% of the electricity used in the city is generated at hydroelectric plants, while the rest is produced by solar, wind, and other renewables. If you own an organization and want to switch from natural gas to renewable energy, you’re probably wondering what the costs will be. This is exactly what we’ll discuss in this guide. But before that, it’s important to understand the deregulation concept.
Deregulation in New York
Until 1998, consumers could only get electricity from ConEd, which had a monopoly in the sector. With deregulation, customers can choose the provider that supplies them with energy, depending on the type of energy, the energy sources used for generating electricity, and the costs involved.
Costs Involved in Switching from Natural Gas to Renewable Energy
In New York City, the electricity costs depend on the commodity price of electricity, the provider, the plan length, and the plan. Until November 2020, the average rate was $0.201/kWh, compared to $0.19/kWh of 2019, according to the US Bureau of Labor Statistics.
Customers are normally charged for electricity via postpaid plan, which means that the electricity provider will bill you for the energy consumption and company’s fees at the end of every month. Certain plans used by certain providers happen to be prepaid, in which case consumers pay for energy before consuming it.
Depending on the chosen provider, several types of plans are offered to consumers, including:
Fixed Plan: Throughout the term of your agreement, consumers pay the same unit price, but your usage will determine your overall bill. Customers need not worry about any changes in wholesale rates.
Variable Plan: Under this plan, the rate customers pay is influenced by the current commodity price.
Indexed Plan: The bills you pay will depend on the commodity price, either being set by the price on a specific day or changing regularly as the price changes. Customers benefit when there’s a drop in price, but they can face problems when prices increase.
With the variable and indexed plans, you need to carefully read the agreement before signing up.
Renewable Energy Consultant In New York
This was our take on the costs of switching from natural gas to renewable energy in New York City. To make the transition seamless, hire an energy consultant from Slattery Energy, where Jim Slattery is excited to take on your project. The company can also help you with other challenges such as natural gas procurement through NYC gas consulting.