The New EV Tax Credit Could Spell Disaster for the Grid

As the automotive industry accelerates towards an electric future, recent changes in the electric vehicle (EV) landscape are causing both excitement and concern. The latest development, a new EV tax credit, promises to propel the adoption of electric vehicles to new heights. However, could this seemingly positive incentive spell disaster for the grid? In this article, we delve into the details of the new tax credit, its potential implications for the Texas grid, and the challenges it may pose for homeowners in San Antonio. 

Instant Gratification:

The $7500 EV Tax Credit Unleashed In a bold move to encourage more Americans to embrace electric vehicles, the government has revamped the EV tax credit system. Unlike the previous setup, where the credit depended on an individual’s tax liability, buyers of electric vehicles can now enjoy an instant $7500 tax credit at the time of purchase. This essentially translates to free cash for anyone willing to make the switch to electric, promising to revolutionize the automotive industry and pave the way for mass EV adoption. 

The Texas Grid Under Strain: A Potential Recipe for Disaster While the prospect of a greener future through widespread EV adoption is promising, it brings forth a set of challenges, particularly for the Texas grid. The state has faced significant grid-related issues, with events such as ERCOT (Electric Reliability Council of Texas) and CPS (City Public Service) shutting down coal plants, limiting on-demand power, and the ongoing mass migration of Californians into Texas. These factors have already placed stress on the grid, setting the stage for potential complications in the near future. 

The EV Onslaught:

Adding Fuel to the Fire As the number of EVs on Texan roads surges due to the new tax credit, the demand for electricity will spike dramatically. If all these newly incentivized EV buyers start charging their vehicles on the Texas grid, it could be the tipping point that triggers rolling blackouts this summer. The grid, already grappling with challenges, may struggle to accommodate the increased load, leading to potential disruptions in power supply. The combination of environmental shifts, policy changes, and increased demand could be the straw that breaks the camel’s back, putting both the grid and homeowners at risk. 

Conclusion:

While the new EV tax credit promises to be a game-changer for the automotive industry, it raises critical questions about the resilience of the Texas grid. As electric vehicles become more accessible and appealing, the strain on the grid in regions like San Antonio intensifies. It’s imperative for policymakers, energy providers, and homeowners to anticipate and address these challenges to ensure a sustainable and reliable energy future. The journey towards a greener tomorrow must be accompanied by strategic planning and infrastructure improvements to prevent the potential disaster that could loom on the horizon.

In light of these potential challenges to the Texas grid, now more than ever, homeowners in San Antonio should seriously consider adopting sustainable energy solutions. Going solar paired with a battery system emerges as a resilient strategy, offering homeowners a reliable source of power even in the face of grid disruptions. By harnessing the sun’s energy and storing it for later use, families can not only contribute to a cleaner environment but also safeguard themselves against the looming threats associated with the surging demand for electricity. Embracing solar and battery technology becomes not just an environmentally conscious choice but a practical necessity in securing a stable and uninterrupted power supply for families in the unpredictable landscape of evolving energy dynamics.

Have you ever heard of the selective attention test? The one where participants are asked to watch a video of two teams passing basketballs and count the number of times the white team passes the ball. Once the video is over, the instructor reveals the true purpose of the test by asking if anyone saw the Gorilla. The point of the test is to demonstrate how something can be right in front of you, yet you cannot ‘see it’ if you are not focused on it.

But what does this have to do with ditching the grid and switching to a rooftop solar installation?

I thought micro inverters had completely eradicated string inverters, but I was surprised to hear a homeowner in San Antonio ask if they were effective. This question forced me to research this subject and read several articles comparing micro inverters to string inverters. If you have had solar installers talk up the benefits of string inverters, then you will want to read this article.

After reading several unbiased articles comparing String and Micro-Inverters, it became clear that micro-inverters are far superior, so let me explain why.

Net Metering 3.0, also known as NEM 3.0, is a significant change to California’s net metering policy that impacts how solar energy is compensated and valued. Under NEM 3.0, new solar panel owners will receive significantly lower compensation rates for excess electricity sent to the grid, compared to the previous NEM 2.0 policy. This change is expected to have a significant impact on the financial viability of solar panels for many homeowners in California; but how will this affect San Antonio and Houston?

My favorite Movie of all time is Limitless. While the main character Eddie Morra played by Bradley Cooper can successfully time the stock market (because he uses 100% of his brain) we are told by financial experts to never time the market.

This is sound investment advice for all of us ordinary folks. We are also told that, instead of timing the market, we should buy and hold and buy the dips. This warning against timing the market should also be given to homeowners in San Antonio who believe they can buy solar panels at the perfect time.

Many people tell me they will just wait until the price of electricity dramatically escalates before they go solar.

I recently sat down with a Homeowner in San Antonio for a solar savings report. After I showed him our quote, he complained that the quotes he received four months ago were cheaper. This illustrates the problem with shopping for solar panels and then procrastinating your decision.

However, the important question you should be asking is why prices on solar panels are jumping so fast they will make your head spin.

Well, I am assuming the role of a town crier to ring my bell and announce to San Antonio the reason this phenomenon is happening.

Most homeowners have insurance for their car, home, and health. However, have you ever considered that you might need an insurance policy to lock in affordable electricity? This may seem like a strange idea since Texas has always had a cheap and abundant supply of electricity.

However, most homeowners in San Antonio had a rude awakening this summer as many saw their electricity costs skyrocket. The main culprits for this dramatic increase were inflation, and restrictions on fossil fuels along with the banning of Russian natural gas and coal due to the war in Ukraine.

Over a year ago I took the plunge and went solar. After several months of consistently getting zero electric bills and flat solar payments, I decided to help spread the solar revolutions by joining Powur PBC. While I was learning the ropes of how to sell the solar opportunity, I stumbled upon a dark secret that most solar companies don’t want you to know!

Recently a homeowner in San Antonio waved his hand as he directed my attention to the homes on his block. Then he said, “You see most people do not have solar panels and I will only get solar panels in San Antonio when I see everybody else in my neighborhood getting them.

If you talk to enough homeowners in San Antonio about Solar panels you are bound to run into someone that believes that they do not pay off soon enough. In fact, I once heard someone lament that they would love to see the payoff within their lifetime. 

However, I find it odd that nobody ever complains about having to pay their power bill forever and ever. That is why I love to ask people that have this upside-down and backward view, when will they pay off their power bill?