By Patrice ‘Pete’ Parsons
Executive Director TXSES
Since February, when Russia invaded Ukraine, Texas has been exporting more natural gas to Europe…more than ever before, leaving less gas for Texas consumers and at elevated prices. Coupled with a relentless explosion in the state’s population and record-breaking searing summer temperatures, Texas consumers have been hit with hefty electric bills this summer – at least 50% more than last year.
According to the U.S. Energy Information Administration, the cost of electricity for residents rose 10% in the last year. The average cost of electricity rose to 12.8 cents per kilowatt hour in March. Natural gas prices are up 181% from May 2021 to May 2022. Texas saw the largest year-to-year increase in electricity generation (17.7%) due to experiencing the second warmest May on record.
And it’s only August.
Since February 2021, ERCOT (Electric Reliability Council of Texas), the Texas grid operator, has shifted its historic priority of providing Texans cheap power to focusing on grid reliability. That translates to higher utility bills for you and me. According to City Public Service (CPS), the municipal utility in San Antonio, average June bills rose from $147 in 2021 to $225 in 2022. Incidentally, we’re all still paying for February 2021 and will be for years.
To add insult to injury, the Texas Department of Housing and Community Affairs stopped accepting applications for the Texas Utility Help, an assistance program for low-income homeowners and renters. The $50 million program launched on July 7 and within two weeks, it stopped processing applications. According to sources, it’s unclear if the fund dried up or was ill-prepared to handle the demand. Either way, it’s another Texas consumer energy pain point.
Even though we are all paying the price for it, on the plus side, the state’s record-high sales tax and oil and gas production revenues over the past year translate to an extra $27 billion in state coffers. Lawmakers are already hard at work vying for those funds ahead of the January 2023 legislative session. Grid resilience or transmission upgrades legislation anyone?
What are some Texas clean energy stats?
ERCOT data say solar power is the fastest-growing source of energy in Texas, increasing 70% year-over-year in May.
According to the Solar Energy Industries Association (SEIA), Texas installed 6,060 MW of solar generation capacity in 2021, for a total capacity of 13,947 MW by Q1 2022. Texas now has enough solar power for 1,682,330 homes, with growth potential of 18,401 MW for the next five years. And while only 3.75% of Texas’ electricity currently comes from solar, the potential market is still massive.
In fact, while total electricity demand in the ERCOT region increased by 9% compared with Q1 2021, wind and solar generation increased by 14% and 85% respectively (not a typo). Renewable energy, which accounted for 31.25% of electricity in Q1 2022, surpassed gas-fired energy!
What’s more, ERCOT gives a robust thumbs-up growth forecast for energy storage technologies. Texas had 833 MW at the end of 2021 but installed capacity could reach 5,000 MW by the end of 2022 and 6,500 MW by 2024. Surely that counts for clean energy bragging rights.
Additionally, according to an Institute for Energy Economics and Financial Analysis report, solar and wind farms combined generated 34% of ERCOT electricity in Q1 2022, which represents a new record for renewables in Texas.
Just last week, the long-awaited Inflation Reduction Act includes a 10-year extension of the Production Tax Credit (PTC) at 30%, stepping down to 26% in 2033 and 22% in 2034. The 30% credit also applies to energy storage whether it is co-located or installed as standalone energy storage, enabling the retrofit of a battery to a solar array while taking advantage of the credit. Envision Texas’ clean energy generation in 10 years.
Where’s the solar workforce?
With the inevitable growth of clean energy resources over the next 10 years, the obvious question is will there be enough of a trained, quality workforce to respond to the relentless need?
In the recently released 2021 National Solar Jobs Census, there are more than a quarter million solar workers, an increase of 9.2% or 21,563 more jobs compared to 2020. In fact, nearly every state saw job growth in 2021. Good news: less than one-third of solar jobs require a bachelor’s degree.
Though the surge in solar permits issued and financials like declining hardware costs, local incentives and federal incentives are compelling, our business installer members fret about the severe shortage of workers, from entry-level to professional. According to the 2021 National Solar Jobs Census, nearly 50% of industry respondents cited competition and small applicant pool as the most significant reason for difficulty hiring at solar companies. When it comes to the most difficult positions to fill, 23% cited installation workers as #1, with electricians and construction workers a close second at 22.5%.
At TXSES, we’re keenly aware of the urgent need for quality training and education, and we’re working to plug those gaps with statewide intern and apprenticeship programs. We’re working closely with industry and educators to ensure that the curricula match industry needs so workers are ready on day one.
What can you do?
If you’ve been thinking about installing solar on your roof or subscribing to a community solar farm, join the hundreds of Texans who are thinking and doing the same thing. TXSES’ business member-installers tell us they’ve never been busier, and battery storage is now a regular part of the conversation. With natural gas prices likely to remain high for some time to come, investing in solar, either rooftop or community solar, is a hedge against rising natural gas prices, grid insecurity and extreme weather events. Visit our business members page for installers in Texas.