Despite their prevalence, the use of fossil fuels has become a point of contention for many global citizens, because of the many negative consequences of utilizing them. In fact, 69% of U.S. adults say they prioritize developing alternative energy sources, such as wind and solar, over expanding the production of oil, coal, and natural gas.

You may wonder why we continue to rely on fossil fuels when so many Americans want to develop more sustainable energy sources. The truth is, there are some reasons why it’s still advantageous to use fossil fuels today.

In this guide, we’ll fully examine this debate, looking at the pros and cons of fossil fuels, how they impact our planet, and why they are so difficult to transition away from.

What are fossil fuels?

You are certainly familiar with the most common examples of fossil fuels – coal, oil, and natural gas, but how do these fuels come to be?

Fossil fuels are compound mixtures consisting of decomposing plant and animal material from millions of years ago. This material is trapped in the Earth’s crust and contains carbon and hydrogen, which can be burned for energy.

Fossil fuels are created when this decomposed material undergoes extreme heat and pressure in the Earth’s crust – as the matter is compressed over time, the chemicals begin to break down and transform into natural fuels.

Each fossil fuel is a result of different combinations of carbon, hydrogen, and other compounds. Different organic materials form unique fuels: the most common fossil fuels are the result of unique amounts of pressure and materials.

Coal, oil, and natural gas are a result of these unique processes, according to National Geographic: 

Humans extract the stored energy in these materials in a variety of ways. Mining is used to extract solid fossil fuels by digging, scraping, or exposing buried resources. Drilling methods help extract liquid or gaseous fossil fuels that can be pumped up to the surface of the Earth, like oil and natural gas.

Fossil fuels are not renewable, meaning that there is a finite supply of these materials inside the Earth. Over time, as humans have extracted fossil fuels, we have had to drill deeper and deeper into the Earth’s crust to harness these materials.

Today, oil and gas wells can range in depth from a few hundred feet to more than 20,000 feet. In some parts of the world, wells go as deep as 30,000 feet.

Why is it important to extract these fossil fuels? 

In short, fossil fuels contain stored energy in the form of carbon and hydrogen, which, when burned, power the mechanical processes we rely on, such as transportation and the electricity we use in our homes every day.

Although there are numerous negative effects of fossil fuel use and extraction, most of the world relies on the energy that fossil fuels produce.

Uses of fossil fuels

Before diving into the specific pros and cons of fossil fuels, it’s important to understand the ways in which fossil fuels are already essential to our daily lives.

While renewable energy sources like solar and wind energy are growing in popularity, the global economy is currently reliant on fossil fuel use. Let’s dive into the numerous ways that fossil fuels are utilized around the world every day.

Transportation

The U.S. spends 29% of its total energy each year to power industrial, farm, rail, and sea transportation with fossil fuels. The main type of fuel used for transportation in the U.S. is petroleum.

These fuels are made from crude oil and natural gas processing, including gasoline, diesel fuel, jet fuel, and propane, according to the U.S. Energy Information Administration (EIA). Natural gas and electricity are also widely used for transportation in the U.S.

If you drive a car, truck, or motorcycle, you know that your car’s engine burns fuel that comes from crude oil, or gasoline. Distillate fuels are used mainly by large trucks, buses, trains, and ships. Commercial and private airplanes use jet fuel to power their trips across the country.

In 2021, petroleum products accounted for about 90% of the total energy used in U.S. transportation activities. All in all, the transportation of goods, people, and food uses a large amount of fossil fuel.

Household uses

Fossil fuels are used in our homes as well, but their most prominent use may surprise you.

More than half of the energy use in U.S. homes is used for heating in the winter and air conditioning when it’s warm outside. Of course, the amount of energy used varies by season, geographic region, home size, and the fuels used.

Next on the list of household energy uses is water heating, lighting and refrigeration, processes that occur year-round and power pretty much every home in the U.S. Combined, these activities accounted for 27% of total annual home energy use in 2015.

Many stoves in modern-day homes are powered electrically, but gas-powered stoves utilize propane to cook food. Fossil fuels are present in our households in additional ways – plastic containers, toilet seats, telephones, toys, kitchen utensils, and more. Fossil fuels produce the petrochemicals used in the manufacturing of polyester and plastic products.

Medical and pharmaceutical uses

The transportation and household uses of fossil fuels may not have surprised you, but did you know that fossil fuel extracts also have medical and pharmaceutical uses?

For example, processed plastics made with oil are used in heart valves and other specialized medical equipment. Chemicals derived from crude oil are used in radiological dyes and films, tubing, syringes, and oxygen masks. Even MRI scanners are made from fossil-fuel-derived materials.

Additionally, fossil fuel extracts are used in products many of us use every day. The chemical Benzene, for example, is a natural component of crude oil and gasoline. It’s often used to make some types of lubricants, rubbers, and even drugs.

To better understand why fossil fuels are used in so many products and processes around the world and why detractors want to be rid of these fuels, let’s dive into the pros and cons of fossil fuels.

Advantages of fossil fuels

While there are various cons of utilizing fossil fuels in our households and businesses, there are several reasons why fossil fuel use has become so commonplace over the years.

Let’s examine some of the advantages of fossil fuel use.

1. Efficient energy sources

Fossil fuels are among the most efficient sources of energy, because small amounts of oil or gas, for example, produce a large amount of energy. Different fuels carry different amounts of energy per unit of weight, and fossil fuels are more energy dense than other sources.

The energy density of oil, according to a Drexel University study, is about 35 to 45 gigajoules (10,000 kWh) per cubic meter. Alternatively, solar energy has a density of 1.5 microjoules per cubic meter, over twenty quadrillion times less than oil.

While renewables like solar energy may be more sustainable, it’s difficult to deny that fossil fuels make efficient energy sources.

2. Useful byproducts

Fossil fuels also create byproducts that are widely used throughout homes and businesses. In fact, petrochemicals derived from oil and natural gas make the manufacturing of over 6,000 everyday products and high-tech devices possible.

So, how does oil turn into a plastic item like the toothbrush you use every day?

After crude oil is removed from the ground, it’s sent to a refinery where different parts of the crude oil are separated into usable petroleum products. While most of these groups are used for the production of energy, a few chemicals are used to make various items.

Some of the products made from fossil-fuel-derived materials may surprise you:

• Antifreeze
• Artificial limbs
• Umbrellas 
• Backpacks
• Contact lenses 
• Mops
• Glue
• Swimming pools

These everyday items would not be possible without chemicals derived from fossil fuels.

3. Easy to transport

Transporting fossil fuels is easier when compared to transporting the energy gained from other sources like wind, water, or solar power.

Crude oil moves from the extraction source to refineries using barges and tankers, and over land by trucks and railroads, or underground through pipelines. Natural gas is transported by underground pipelines and liquefied natural gas (LNG) tankers. These materials are housed in metal tankards and containers.

While it is generally considered easy to transport these fossil fuels, it’s important to note that oil spills and natural gas leaks occur frequently. These incidents are a large source of various pollutants leaking into our atmosphere and water sources.

4. Generates thousands of jobs

There are millions of people currently employed by the fossil fuel energy sector – in 2019, nearly 1.7 million people worked in fossil fuel industries, conducting activities such as mining, electricity generation, and transportation.

Many countries rely on the economic activities resulting from fossil fuel extraction and use. Because of this, the adoption of renewable energy must include transitioning these millions of jobs that individuals and families rely on around the world.

5. Readily available and relatively easy to extract

Fossil fuel plants and extraction sites require a relatively small amount of infrastructure. For example, offshore oil rigs and onshore oil derricks pump most of the petroleum that is extracted throughout the world. This process involves drilling a hole into a potential oil patch and then pumping the oil out through a long tube.

Most countries that rely on fossil fuels also already have the infrastructure and knowledge with which to mine and drill for these fuels.

In addition, since fossil fuels have powered our world for over 250 years, there is already infrastructure in place to distribute it and utilize it at a relatively low cost. Most of our infrastructure is, ultimately, already built for fossil fuel use, from cars to gas-powered stoves.

Over the last few centuries, large amounts of fossil fuels have been readily available around the world. Rising population has created more and more demand for these energy sources.

To extract fossil fuel resources at a faster rate, global nations have invested large sums of money into the energy sector. In fact, the International Energy Agency (IEA) predicted that energy sector investment would rise to over 8% in 2022 to reach a total of $2.4 trillion.

Disadvantages of fossil fuels

Now that we understand the various reasons why fossil fuels are considered advantageous around the world let’s dive into the many disadvantages of fossil fuel use.

1. Environmental degradation

Primarily, the burning of fossil fuels causes air pollution, which makes its way into our soil and water sources. The combustion of these fuels releases carbon dioxide (CO₂) and other greenhouse gasses, which trap heat in our atmosphere and heat up our planet.

Thus, greenhouse gasses like CO₂ are the primary cause of one of the most existential threats to our planet: climate change. In fact, the Intergovernmental Panel on Climate Change (IPCC) has found that emissions from fossil fuels are the dominant cause of global warming. In 2018, 89% of global CO₂ emissions came from fossil fuels and industrial activities.

Many places around the world are already experiencing the effects of climate change, such as the ever-rising sea level and extreme natural disasters, and weather patterns. If this persists, the consequences will be disastrous for all living species.

Evidently, the use of fossil fuels contributes to environmental degradation and is worsening climate change by the day.

2. Power stations require lots of reserves of coal

Today, we rely on power stations to produce energy. For power stations to keep working, they require vast amounts of coal: it takes about 1 pound of coal to generate one kWh of electricity.

In addition, large trucks are used to transport coal if power stations are not located near large deposits of coal. This transportation also requires a lot of power which can not only damage the Earth but is also very expensive. In turn, fuel prices will keep rising as a result of high transportation costs.

3. Health complications (from fuel combustion)

Critically, fossil fuel combustion causes air pollution, which can lead to serious health complications that are passed down through generations.

According to the World Health Organization (WHO), burning fossil fuels releases pollutants that lead to early death, heart attacks, respiratory disorders, stroke, and asthma. It has also been linked to autism spectrum disorder and Alzheimer’s disease.

Carbon dioxide emissions have also been associated with global warming and the destruction of the ozone layer. The ozone layer protects humans and animals from the powerful rays of the sun, so degrading this layer exposes us to high levels of radiation, which causes skin cancer.

4. High depletion level

Critically, fossil fuels are not renewable energy sources. Unlike water, sun, and wind energy sources, the level of fossil fuels underground is depleting with each passing day.

In the next few centuries, we will run out of fossil fuel reserves. Experts predict we have 139 years left of coal, 54 years left of oil, and 49 years of gas supply. In our lifetime, we must transition to alternative sources of energy to power our everyday lives and critical processes.

5. Oil spills and gas leaks

When transporting oil, there is a high likelihood of the oil spilling onto land and into the sea. In the U.S. alone, there have been over 44 major oil spills since the 1970s, resulting in severe harm to aquatic life.

Ultimately, oil spills are disastrous to all living things and almost impossible to clean up.

The Horizon oil spill that occurred in the Gulf of Mexico released 4.9 million oil barrels into the Gulf of Mexico. The petroleum that had leaked from the well before it was sealed formed a slick extending over more than 57,500 square miles, harming and killing millions of plants and animals in the region.

Natural gas pipelines also leak this harmful fuel into the soil and atmosphere. Leaks are incredibly dangerous because they can kill vegetation and trees, cause explosions and fires, and release greenhouse gasses into the atmosphere.

6. High levels of water usage

Water shortages are a common problem in most parts of the world, especially in developing nations or areas stricken by drought.

In California alone, oil and gas operators used 3 billion gallons of freshwater from municipal sources between 2018 and 2021, an amount equal to what would be used in more than 120 million showers.

Fossil fuel power plants contribute to this problem because they require vast amounts of water for cooling. A study conducted in the U.S. reveals that fossil fuel power plants consume over four times the water that all the water used in homes in the U.S.

The long-term effect of water consumption by fossil fuels is the depletion of finite water resources, and the result is a lack of water. Contaminated water supplies or a lack of water can result in improper sanitation, exposure to chemicals, health issues, and even death.

7. Rising fuel costs

As fossil fuels continue depleting, it is becoming harder and harder to extract them from the Earth. In turn, the cost of extracting fossil fuels has risen. In the U.S., if fossil fuel prices are driven higher, the country could spend more than $30 trillion on fossil fuels between 2010 and 2030.

Also, since only a few countries in the Middle East produce the world’s fossil fuels, there is an increasing fear of war, lower output of fuels, and strikes by trade unions that can lead to fuel fluctuations around the world.

The clean energy transition

While there are clear pros and cons of fossil fuels, it’s clear that the disadvantages of continuing to use fossil fuels far outweighs the benefits. The clean energy transition seeks to make renewable energy sources more reliable and encourage the widespread adoption of renewables over fossil fuels.

Experts agree that switching from more harmful fossil fuels like coal and oil to less emission-intensive fuels like natural gas can result in significant CO₂ and air quality benefits. While it’s not a long-term answer to climate change, switching to natural gas can make a difference in the short term.

However, our supply of fossil fuels will run out soon. Significant investment, private-public partnership, and widespread adoption of renewable energy sources like solar and wind energy must occur before we can successfully phase out the use of the fossil fuels that are harming our planet.

Organizations like the Clean Energy Transition Institute, the United Nations, and the European Commission have identified pathways to decarbonization in the building, industrial, and manufacturing sectors. Like with the domestic use of fossil fuels, these industries must transition away and find alternatives.

Conclusion on the pros and cons of fossil fuels

When we compare the pros and cons of fossil fuels, it is clear that despite their numerous uses, fossil fuels are causing untold damage to our planet, humans, and plant and animal species.

Since human beings have relied upon fossil fuels for a long time, the transition may seem difficult, but it’s necessary for the survival of our planet and species.

However, some countries have begun to generate substantial portions of electric power from renewable sources. Individuals and large organizations and corporations should all join in the clean energy movement, to make the Earth a better home for us all.

Building energy management systems (BEMS) provide a highly adaptive solution for the ongoing refinement of building energy management. These systems use several emerging technologies for the remote monitoring of building energy performance and precision control of consumption.

In this article, we explain what building energy management systems are, how they work, and the benefits and limitations of implementing this technology in residential and commercial buildings.

What is a building energy management system?

Building energy management systems, or BEMS, are a diverse group of technologies that monitor and control the energy consumption of a building. They combine automation, the Internet of Things (IoT), machine learning, and artificial intelligence (AI) to precisely manage energy use by building appliances, lighting, and HVAC.

BEMS are distinct from building management systems (BMS) which are computer-based systems that integrate the functions of an entire building including, fire protection and security. BEMS are available as custom, programmable, or pre-programmed solutions.

Building energy management systems provide buildings and facilities managers with a tool for improving the energy efficiency of the properties they manage.

The IT systems that run BEMS gather data from a range of control and automation inputs. The following are example data sources used to optimize the use of energy with building-wide automated and manual improvements:

• traditional control and automation systems
• thermostats
• smart meters
• consumption data
• advanced sensors
• utility price tracking
• wholesale energy prices
• business intelligence

How do building energy management systems work?

BEMS are a type of building automation system (BAS) that monitors and controls the individual mechanical devices and appliances that consume energy in the building.

A competent BEMS requires: 

• A distributed network of sensors for parameters like temperature, light, humidity, and movement.
• Automated or remotely controlled actuators for pumps, vents, windows, radiator valves, thermostats, power switches, and light switches.
• A controller that receives inputs from the sensors and coordinates output instructions to actuators. The controller may be automated or a building manager can control it in real time.

The system uses its sensors and actuators to control and optimize conditions within the building, adapting to the use and demand of its occupants. For example, a BEMS can actively maintain a comfortable internal temperature by switching furnaces on or off, closing windows or adjusting radiator valves.

However, BEMS are distinct from standard thermostat-based heating control as it is much more hierarchical and delivers precision control that is integrated with other energy consumption.

Description of building energy management systems

The functionality of building energy management systems spans four key areas:

1. Visualization and reporting

Building energy management systems provide facilities managers with a software interface, for interacting with the system. The software element of a BEMS presents detailed reporting on the status and consumption of the building’s appliances and heating. Information relating to the BEMS is visually displayed, using dashboarding, charts, and graphs.

2. Fault detection and diagnostics (FDD)

Fault detection and diagnostics is a critical aspect of the management of buildings involving the identification of errors in the physical systems that operate in the building. By uncovering these faults and errors promptly, managers can remedy them before there is a derangement of energy resources, a change in building conditions, or failure of the system.

3. Predictive maintenance

Predictive maintenance uses IoT sensors and other condition monitoring tools to monitor the building energy systems. This technology can alert managers when maintenance is needed. By monitoring the performance of the energy systems and appliances in the building BEMS can ensure that appliances are properly maintained so they don’t use excessive energy.

4. Continuous improvement

A BEMS uses its data feeds and sensor input to look for opportunities to improve energy efficiency. The software algorithms and machine learning of the BEMS determine the parameters for implementing improvements to the building’s energy consumption, optimizing its performance.

Any building can be a smart building

BEMS can be implemented in any type of building including residential housing blocks, commercial buildings like supermarkets, offices, malls, or industrial sites where the BAS microprocessor technology was first used in the 1970s.

Factors to consider before installing a BEMS

The energy consumption needs of different buildings vary widely. This means that the specifications and functionality of BEMS have to be tailored to an individual building’s needs.

Here are some of the key factors that can help you determine the best type of BEMS for a building:

Building size

Building size is one of the most important factors for determining what caliber of BEMS is required. Large buildings, understandably, have greater energy demands than small residential dwellings. 

For a larger building, rather than using consumer ‘smart home’ solutions and billing analysis, building owners and managers build custom BEMS that include features like advanced and predictive analytics, demand response, building optimization and automated building controls.

Building location

The region the building is located contributes climatic factors that affect the energy demands of the building. In places where there is strong seasonality or temperature extremes, a BEMS can learn and manage consumption for the external temperature highs and lows to maintain a comfortable and consistent internal environment.

The number of buildings that need to be managed

It is hard to implement a harmonized BEMS for multiple buildings. Even identical buildings often have unique characteristics and performance nuances, making the implementation of a single BEMS difficult. This means that each building within an estate will require its own BEMS.

Building use

The building’s use determines the level and pattern of occupancy. The system that is used has to respond to the type of occupant, for example, office workers versus residents. BEMS specifically monitor and support occupant comfort, especially if they make adjustments to thermostats or air conditioning.

The benefits of building energy management systems

Building energy management systems herald a new age of smart buildings that managers can optimize for maximum energy efficiency, with equipment and appliances carefully controlled. These energy management systems deliver wide-ranging benefits to building owners, facilities managers, contractors, and building occupants.

Here are some of the benefits BEMS deliver:

1. Building energy management systems deliver excellent ROI

Property owners and developers who invest in BEMS benefit from their in-built energy and cost-saving functionality. These systems continually work to reduce peak power consumption and optimize the energy efficiency of the building by adapting to actual occupancy and demand. Savings in utility costs quickly offset the capital expense of installing the system.

BEMS that offer the highest level of customization to the building use and energy requirements give building owners and managers the most control. The more sophisticated the BEMS, the greater the control of energy consumption and potential energy savings it can achieve.

2. A BEMS enables the energy consumption of a building to be controlled

The energy data and diagnostic tools of BEMS can optimize a building’s energy use and curb wastage. Building energy management systems monitor patterns in the demand and usage of energy in a building for precision control of energy consumption. According to Honeywell Building Technology, a BEMS can deliver control of up to 84% of building energy consumption.

3. BEMS reduces energy costs

The continuous improvement and optimization that BEMS minimizes energy wastage, saving money on utilities. A BEMS can achieve energy cost savings of up to 55%, because of the level of fine control the system delivers. These savings have a positive impact on the operating costs of the building or facility.

4. BEMS conserve energy

BEMS are one of the most effective ways for buildings to conserve energy. The potential for energy savings are noteworthy, especially when up to 80% of energy consumption is for heating and hot water in residential and commercial buildings.

Improved energy management provided by a BEMS can offset thermal losses from older buildings. The active monitoring and control of a BEMS means that energy use matches occupant requirements and habits.

5. BEMS can integrate renewable energy solutions

The responsiveness of BEMS enables them to integrate renewable energy sources like solar energy, which do not give continual power. Developers can readily integrate solar energy management systems with the software platforms of the leading BEMS solutions to ensure that any renewable energy generated by the building is utilized for maximum cost savings or profit, if added to the grid.

BEMS can also integrate demand-response (DR) solutions that enable building operators to take advantage of renewables to manage and reduce their demand for peak hours electricity from the grid. Many BEMS software programs provide the interfaces for in-depth renewable energy integrations like DR.

6. BEMS are designed to be adaptable

The machine learning and artificial intelligence technologies that the leading BEMS use enable them to adapt a building’s energy consumption to the needs of the building occupants. These systems respond to changes in occupancy, seasons, appliance, and device consumption and integrating new systems and products to maintain optimized energy management at all times.

7. Can aid building compliance

Energy management of buildings is a political issue and many governments are producing regulatory guidance or legislation for improving the energy efficiency of properties.

As a type of energy management system (EnMS), BEMS can help a building obtain key certifications like the U.S. National Energy Performance Rating System and ENERGY STAR Building Certification Program or ISO 50001 that specifically deal with energy management.

8. BEMS use time-saving automation

BEMS are integrated with a variety of automation technologies to reduce the physical workload of running a building. Aside from running HVAC, a BEMS can oversee lighting, windows and invent integrated fire protection and access control. This reduces the human resources required for building maintenance and management.

9. Building energy management systems help to reduce greenhouse gas emissions

Building energy management systems control the consumption of all energy sources used by the building, including electricity, natural gas, and heating oil. These systems can switch to energy sources that do not directly release CO₂ like electricity rather than fossil fuels. By optimizing consumption the International Energy Agency suggests that there is an annual abatement of 1 GtCO₂.

10. BEMS prolongs the longevity of HVAC equipment and appliances

BEMS facilitate better management optimization and maintenance of HVAC equipment, prolonging its usable life. Because the use of HVAC is more precisely controlled, preventing the overwork of parts like fans and pumps that can rest as much as possible.

This keeps resources in use for as long as possible without the expense of premature replacement.

11. Building energy management systems can reduce maintenance requirements

Equipment maintenance is expensive and requires manpower. A BEMS can help reduce the need for routine and unexpected maintenance by remotely monitoring the performance of HVAC equipment, alerting building managers when their function becomes abnormal, or breaches a critical number of usage hours, for timely repairs.

12. BEMS safeguard business continuity

Corporate, industrial and healthcare facilities that cannot afford to have downtime can benefit from robust energy management that may even have to include backup sources of power. The close monitoring of energy sources and power systems by a BEMS means managers can detect and remedy problem before a critical incident causes downtime.

Facilities managers can program BEMS software with alerts for specific problems that they can receive remotely. Developers can also configure BEMS to support the Service Level Agreement (SLA) of companies like web hosts or cloud computing service providers.

13. BEMS can improve the comfort of building users or residents

BEMS facilitate environmental conditions within the building that keep its users or residents comfortable. They can accommodate individuals changing heating or cooling settings, or the use of devices that use more power. These adaptive systems are always learning how to best manage user demand to optimize the well-being of building occupants.

Limitations of building energy management systems

Like many technologies, BEMS have their limitations, which need to be understood to implement building energy management that delivers results. This technology has been embraced in many parts of the world and sensor-based IoT technology is becoming more and more accessible. However, this technology is still relatively nascent and may not always be able to achieve the building intelligence that is envisioned.

Here are some notable disadvantages of BEMS technology:

1. Data inputs can be extremely dense

The sheer volume of data that is generated by the distributed IoT sensors and other inputs can be too unwieldy to extract and visualize effectively. The software that processes and analyses this data must be sophisticated enough to use it in a ‘smart’ way, changing how energy is consumed.

2. Setting up a building energy management system is expensive

Significant capital investment is necessary to install the data acquisition infrastructure and to implement specific solutions for key areas of energy consumption such as lighting. Costs for a BEMS can range between $2.50 and $7 per square foot, with the IoT equipment, (particularly custom actuators), being a major expenditure.

3. Skilled labor may be required to analyze BEMS data

Building energy management systems require skilled building managers or building engineers who can analyze and act on the data that a BEMS collects and processes.

These professionals understand the software and can adjust configurations and set points to optimize consumption. However, this skill set is beyond an ordinary facilities manager role and commands a higher salary.

4. If the configuration is poor, a BEMS may not deliver value

BEMS technology delivers energy and cost savings through its advanced configuration. Even with the best data collection infrastructure, a BEMS will not deliver value without being correctly configured; set points and schedules so that it can implement any required optimizations.

The configuration of BEMS requires specialist contractors, who can optimize a poorly deployed and configured BEMS to improve savings. Buildings and businesses like hotels, stadia, or malls that have a wide range in occupancy benefit from the skilled configuration that can learn trends and take advantage of periods of reduced demand.

5. Energy management in a building may already be well optimized

Some buildings may already be extremely energy efficient with consistent schedules and performance that makes a BEMS redundant. Some offices and residential apartments have such consistent schedules and occupancy rates that their energy management is almost completely optimized already and BEMS will add few changes.

6. BEMS may miss energy consumption from small equipment and appliances

BEMS software tracks patterning in energy consumption, rather than the use of individual devices. These systems can miss small equipment like electronics because their load may not be large enough to trigger sensors.

Also, BEMS may not control smaller equipment that may be part of the building infrastructure as it is configured to focus on the building systems that impact operating expenses most.

7. BEMS malfunctions may impact occupant comfort

An obvious problem can arise if the BEMS activates the settings for winter during the summer months and vice versa. If the BEMS functions separately to the general building monitoring, problems like fan and lift breakdowns may be missed. This is why building managers desire highly integrated solutions that give them oversight of condition in the entire building.

8. BEMS are difficult to scale across multiple properties

BEMS cannot be used to run multiple buildings within a property portfolio. Each building requires its own BEMS infrastructure, data protocol, processes and integrations, according to its amenities, appliances, and building conditions. Coordinating multiple sites on a single BEMS would soon become unwieldy and few software vendors offer this service.

9. A building can maintain energy management certifications without a BEMS

Building owners and managers can get energy certifications like the ISO 50001 for building without the expense of installing a BEMS. Facilities managers can implement the best practices for energy management outlined in many certifications by using low or even no-cost initiatives. A BEMS can then be introduced further down the line once the building has realized the initial energy savings.

10. Building energy management systems carry an inherent cybersecurity risk

By using cloud-computing software to manage the energy consumption of a building, owners introduce the real risk that someone may hack their BEMS. The data generated by the BEMS is valuable and may expose the building occupants to risks if accessed by malicious agents. An attack on the BEMS may also lead to downtime of essential services within a building.

In conclusion

BEMS can impact the energy consumption and ongoing maintenance of a wide range of building types. When installed and configured properly, they can help building and facilities managers optimize the energy performance of a property while providing a comfortable environment for building occupants.

However, the lack of scalability, scope, and high costs still hamper the widespread adoption of this technology. Smart buildings are definitely the future but BEMS still need work to play a part in the next phase of energy management.

The state offers a range of excellent solar incentives as well as Minnesota energy rebates to encourage homes and businesses to explore solar power, meaning that investing in solar panels will not only let you be kinder to the environment, it could be good for your wallet too!

Minnesota Energy Rebates Explained

Minnesota has a long history of promoting eco-friendly policies, with its Conservation Improvement Program (CIP) dating back to the 1980s, and offers homeowners an excellent range of solar incentives and energy rebates.

In 2007, the state adopted a Renewable Portfolio Standard (RPS) which mandated energy goals for utilities. The same year, the state legislature passed the Next Generation Energy Act which requires the Gopher State to slash its greenhouse gas emissions by 80% between 2005 and 2050.

This led to a swathe of renewable energy incentives, particularly solar incentives, offered to consumers and businesses alike.

Furthermore, you can expect these incentives to remain in place for some time to come, especially when you consider that the RPS set the target of 10% of all retail electric sales to come from solar by 2030, but this rate is only about 3.5% at the moment.

In this guide, we’ll take a look at the best solar incentives available for Minnesota residents and other benefits of going solar if you live in the Gopher State. These incentives include federal incentives, as well as schemes only available to Minnesota residents and those living in the service area of specific utilities.

You can access net metering

Net metering is a fantastic solar incentive that’s available in various states, including Minnesota. The state was one of the first to introduce net metering laws in 1983, which apply to all investor-owned utilities (IOUs), electrical cooperatives, and municipal utilities.

This means that as a resident in the state, you get solar bill credits when you feed energy back into the grid. In Minnesota, you’ll be paid for your excess energy generation at least the average retail energy rate: it’s mandatory for all utilities to provide net metering for solar systems up to 40 kW, which covers almost all residential solar arrays.

However, the exact credit you’ll get depends on your energy provider – currently, Xcel Energy has the best net metering program for homeowners. Some utilities give monthly unused bill credits, while others accumulate the credits throughout the year and reimburse you for any remaining credits at the end of the year.

It’s a good idea to check how net metering works in your area, as this may affect how you choose to design your solar system.

You won’t need to pay sales tax

Another incentive that encourages Minnesotans to go renewable is sales tax exemption. You don’t need to pay sales tax when buying solar panels or other solar energy equipment in the North Star state!

The sales tax exemption applies to solar energy systems, defined as:

 “a set of devices whose primary purpose is to collect solar energy and convert and store it for useful purposes, including heating and cooling buildings or other energy-using processes, or to produce generated power by means of any combination of collecting, transferring, or converting solar-generated energy.”

With state sales tax currently at almost 7%, this could represent serious savings when setting up a large solar system. Contractors should automatically include this exemption of quotes and invoices, so be sure to check that sales tax isn’t imposed when you buy or install solar energy equipment.

You’ll also get an exemption on property tax

The Minnesota equivalent of property tax exemption is their Wind and Solar-Electric (PV) Systems Exemption Policy. Under this policy, if your home’s solar system increases its assessed value, you won’t need to pay more in property taxes.

This policy aims to avoid homeowners being discouraged from investing in solar because it may lead to a property tax penalty. It also means that you can effectively boost the value of your home while saving on property tax.

However, keep in mind that property taxes will apply if you have a piece of land that is primarily used to generate solar energy.

You’ll get access to the Residential Clean Energy Credit

Of course, Minnesota homeowners also get access to the federal solar tax credit. Formerly called the investment tax credit (ITC), the Residential Clean Energy Credit could slash the costs of setting up a solar system by up to 30%.

Under the scheme, homeowners are eligible for a federal tax credit of up to 30% of the entire cost of equipment, labor, and permitting to install a system, for solar arrays installed before the end of 2032. From 2033 onwards, the federal tax credit drops to a maximum of 26%.

It’s important to note that to be eligible for the federal tax credit, you need to buy your solar system outright. This means you can either invest in your system by making a cash purchase or a solar loan, but you won’t receive this credit if you decide to lease your solar panels.

Furthermore, to get the full benefit of this incentive you’ll need to have sufficient taxable income. On the other hand, tax-exempt entities may be eligible for a direct payment as a further incentive.

Minnesota Energy Rebates: you have access to local and utility rebates

A range of utilities in Minnesota offer attractive rebates to homeowners in their service area who install solar systems. These include Xcel Energy, Solar Sense and Dakota Electric, as well as some local municipalities.

Xcel Energy’s Solar Rewards Program

Xcel Energy is the state’s largest utility company and, if you live in their service area, you can access their Solar Rewards Program, where you receive an annual payment based on your PV system’s energy production. Funded by the Minnesota Renewable Development Fund, the program gives homeowners a performance-based incentive to produce more solar power.

The utility company will pay you per $0.07/kWh of solar energy you produce for up to 10 years. You need to get in early, as once the program budget is fully allocated for the year, funding is not guaranteed, and you’ll need to join a waitlist.

SolarSense

The good news: this rebate covers up to 60% all of the costs to install your solar system, up to a maximum of $10,000. The bad news: it’s awarded via a lottery, so luck will need to be on your side!

To qualify, you’ll need to be a homeowner under the Minnesota Power utility and meet certain requirements in terms of system size and type, as well as the installer you choose. You can check if you’re eligible here.

Dakota Electric Association

Dakota Electric Association offers a one-time rebate of $500 to its customers who install home solar. Be careful though as, unlike some other utility rebates, you’ll need to submit your application and receive approval before you install your home’s solar array.

St Louis Park Solar Sundown

Under the city of St Louis Park’s Solar Sundown program, residents can receive a subsidy of between 4% and 6% of the total cost to install solar in their home. However, it’s only open to existing homes: homes and additions built within the last 12 months don’t qualify.

Shakopee

If you live in Shakopee and are connected to Shakopee Utilities, you could be eligible for a solar rebate of up to $1000. Like many similar programs from public utilities, the funding is limited and quickly gets fully-subscribed, so be sure to apply early to avoid joining the waitlist!

Austin, Owatonna, and Rochester Public Utilities

If you live in the cities of Austin, Owatonna, or Rochester, you’ll be able to access a solar rebate from your local public utility. These three cities offer a $500 rebate to all homeowners (as well as businesses) who install PV solar systems with 2 kW DC capacity or more.

You can also get a rebate of $15 per square foot of collector area for your solar hot water system in any of these cities. Just be sure to submit your application within 30 days of installation, and you’ll need to sign a net-metering and interconnection contract with the public utility.

Brainerd Public Utilities

If you’re in Brainerd Public Utilities’ service area, you can access a rebate of $0.50 per watt when you install a PV solar system in your home. The maximum rebate is $2,500, and only applies to systems up to 40 kW, which covers the vast majority of residential solar systems.

Minneapolis Green Cost Share Program

The City of Minneapolis’ ‘Green Cost Share Program’ includes solar incentives, but not for normal residential properties. The city’s solar rebate is only available to commercial, industrial, nonprofit, part of the City’s 4d Affordable Housing Incentive Program, or multifamily properties, the latter being complexes with three or more units.

Single-family and duplex properties can apply to the program, but only as part of a solar group purchase of five or more properties, of which 20% need to be environmental justice or income-qualified.

If your property meets any of these criteria, you may be eligible for a solar rebate from the City of between $0.20 and $0.40 per estimated annual kilowatt hours to install solar.

New Ulm Public Utilities

Finally, New Ulm Public Utilities offers solar rebates for their residential, commercial, and industrial customers installing new PV systems between 0.5 kW and 40 kW. You’ll need to sign a net metering and interconnection agreement, and you can then apply for a rebate of $1 per nameplate watt.

What about energy rebates in Minnesota?

Minnesota also offers a range of energy rebates to encourage homes and businesses to adopt more energy-efficient practices and switch to natural gas. These rebates can help you save some cash and give you an extra incentive to go green.

The rebates offered to private residences and individuals include:

Heating system rebates

The state offers rebates to existing homes that are at least two years old when you upgrade your heating to a more energy-efficient system, such as a natural gas boiler, energy-efficient fireplace, or install an advanced, programmable thermostat.

The rebate you’ll be eligible for will depend on how efficient your new system is: for example, a natural gas furnace with 92% AFUE efficiency will get you a $250 refund, while one with 97% could be awarded a $500 rebate.

Water heating rebates

Minnesota will give you a rebate when you update the water heater on your existing property to a more energy-efficient system. As with the heating system rebates, the rebate amount depends on the efficiency of the water heater you install, as measured by its Uniform Energy Factor (UEF) and ENERGY STAR® rating.

Insulation and air sealing rebates

Minnesota Energy Resources offers rebates for installing insulation and more effectively sealing your house from external airflow, as this prevents the loss of hot and cold air, making your home more energy-efficient.

The scheme is available to existing homes that are more than two years old and use natural gas heating, for insulation installations and air sealing work done by a Minnesota Energy Resources’ authorized contractor.

Final thoughts

There are a range of solar incentives and Minnesota energy rebates available to residents and businesses in the Gopher State. These range from sales and property tax exemptions to rebates offered by various utilities and municipalities, and mean that it’s never been a better time to go green.

With so many great incentives in place, if you live in Minnesota you can offset the cost of installing a solar system, allowing you to start enjoying the cost savings of running your home on renewable energy, not to mention doing your bit for the environment!

Planning on installing a solar system? Take a look at our posts on monocrystalline vs polycrystalline PV panels, solar output, and how solar panels work in cold weather.

Just like magic, you imagine electricity flying through the air like invisible sparks, wirelessly, powering up the smartphone in your pocket or the tablet on your desk, and keeping them always topped off.

Low battery warnings? Permanently a thing of the past.

Investors, wanting to seize on the money-making opportunity presented by the notion of wireless electricity, rallied behind so-called nanocrystal electricity companies that supposedly could pull this off.

Not so fast.

Although there is science to support it, nanocrystal electricity exists mostly in labs today. You’ll read about some of this exciting research, especially in photovoltaics (solar energy).

You will also learn about unsuccessful investor campaigns to sell stock in nanocrystal electricity. You will meet a company wrongly associated with nanocrystal electricity, and find out what they are doing instead. 

In fact, this company is one of several tech startups that is taking the core concepts behind nanocrystal electricity and wireless electricity and running with it. Using various scientific techniques, they’re developing a type of wireless technology known as wireless power transfer (WPT). The startups are actively working on scaling it up for widespread use.

Find out here what WPT means for you — now and in the future. 

What is nanocrystal electricity?

Nanocrystal electricity refers to tiny crystals generating electric currents via the piezoelectric effect. There are two ways this effect happens: direct and inverse.

Direct piezoelectric effect

Mechanical pressure on extremely small (nano) crystals creates an electric current, as the diagram below of the direct piezoelectric effect shows.

Microphones and pressure sensors function because of the direct piezoelectric effect.

Inverse piezoelectric effect

Similarly, the inverse piezoelectric effect occurs when voltage is applied to a piezoelectric crystal, expanding or shrinking it. Speakers in phones and buzzers as well as sonar operate because of the inverse piezoelectric effect.

Here is a diagram illustrating the inverse piezoelectric effect on a nanocrystal of lead zirconate titanate:

Unfortunately, nanocrystal electricity could never work on a grand scale to power a home or a country because the electric currents produced are just too small to power anything for any significant length of time.

Yet somehow, in the late 2010s, investors began promoting nanocrystal electricity as the next big thing in green technology.

At the time, the startup tech company, Energous, was cited in a few articles and financial newsletters as spearheading nanocrystal electricity, a “disruptive” technology with great money-making potential. However, a 2018 article published by Nanalyze titled Investing in Nanocrystal Electricity Stocks stated clearly:

“In looking through the latest 10-K from Energous, not one mention is made of “nanocrystal” anything. In fact, not once are the words “nano” or “crystal” used in the entire document. So whoever decided to start calling wireless charging “nanocrystal electricity” should be slapped. Henceforth, we will try to never use this term again, and instead talk about “wireless charging.”

To support this conclusion, we spoke with Cesar Johnston, the CEO of Energous, in an October 2022 video call. He confirmed that nanocrystal electricity was never a part of their game plan or mission as a wireless power company. Johnston stated unequivocally:

“Energous has nothing to do with nanocrystal electricity.”

When asked how the mistaken connection between Energous and nanocrystal electricity could have gotten started, Johnston, suggested that the longstanding goal among scientists to “harvest” electricity in a way that didn’t depend on fossil fuels was probably behind it. He pointed out that researchers have been exploring alternative strategies to generate electricity, like using solar energy or radio frequency waves, for over a century. 

Besides Energous, there are several startups innovating in the wireless technology space. They are all featured later in this article.

But first, brief looks at nanocrystal electricity on an experimental scale and on the history of wireless electricity will help piece together this puzzle about how we got from nanocrystal electricity to wireless power transfer (WPT) via wireless electricity.

Nanocrystal electricity in the lab

In the 2010s, while investors began hailing — without good reason — the unlimited potential of nanocrystal electricity stock to make money, there were scientific papers related to the topic being published. It’s possible that the person who coined the phrase nanocrystal electricity considered this work as a scientific justification for it. 

However, the scientific advances on nanocrystals happening in research labs had nothing to do with electricity to feed the grid, power homes, or even recharge devices wirelessly — as the investors claimed. 

Nanocrystal research, for instance, falls within the emerging field of nanoscience in medical applications such as drug delivery. Several research teams look specifically at the electrical characteristics of nanocrystals. Here are three of them:

1. Electrical characteristics of nanocrystal solids

Photovoltaics refers to the use of sunlight energy to create direct current (DC) electricity. It’s the science behind solar panels.

There is an ongoing effort in the scientific and engineering communities to identify chemically stable and non-toxic crystals that efficiently convert solar energy to electrical energy. This paper discusses the testing of semiconductor nanocrystal solids for their electrical properties. The goal is to identify highly absorptive materials for advanced solar cells with superior efficiency.

2. Nanocrystal light-emitting diodes based on type II nanoplatelets

This work investigates a new class of semiconductor nanocrystals called nanoplatelets used to make brighter light-emitting diodes (LEDs). You are probably familiar with LEDs as the small red, blue, white, or green lights that indicate the charging or on/off status of electronic gadgets.

Researchers believe these nanocrystals can be used in solar cells or lasers as well as in high-performing LEDs. 

3. Strongly emissive perovskite nanocrystal inks for high-voltage solar cells

Perovskite nanocrystals hold much promise in photovoltaics as a silicon alternative. They are less energy-intensive to produce than conventional solar cells and generally are made with more environmentally-friendly substances. 

As of yet, perovskites aren’t stable long enough to be commercially scalable in solar panels. This means they degrade quickly. Research looking at the characteristics of specific perovskites, including their electrical properties, aims to overcome this technical barrier to creating highly efficient solar panels. 

A 2022 study proposed an experimental method of accelerated aging of perovskites. The researchers were able to estimate the stability of their perovskite solar cells to be 5+ years at elevated temperatures and humidity. Efficiency remained high. This is an incredible improvement compared to other perovskites. 

The new technique is an important tool with which investigators can measure perovskite solar cell longevity. Expect more technological advances with perovskites in the near future.  

General conclusion from nanocrystal electricity research

Labs researching the electrical characteristics of nanocrystals exist in academia, industry, and government today. As suggested here, most of it is related to photovoltaics. It is distinctly not about nanocrystal electricity on a commercial scale envisioned as an alternative to fossil fuel power plants, electrical substations, and high-voltage wires and poles stretched over much of the world. 

The dream of nanocrystal electricity to power homes, offices, and factories belongs only to investors hoping to sell stock in nanocrystal electricity companies — although there weren’t any.

However, the concept of wireless electricity is not new. For this invention, we have Nikola Tesla to thank. 

Nikola Tesla and wireless electricity

Nikola Tesla had big plans for wireless electricity as a late 19th-century engineer, physicist, and futurist credited with the invention of alternating current (AC) electricity used worldwide in homes, offices, and factories. However, none of his plans involved nanocrystals.

For Tesla, inventing many modern conveniences we still enjoy today, such as remote controllers, x-rays, neon lamps, and radios, was a mere prelude to his dream.

Tesla hoped to electrify the world wirelessly. For him, wireless transmission meant “a great step will be made toward the unification and harmonious existence of the various races inhabiting the globe.” 

Tesla started the project in 1902 in New York but couldn’t complete it when his funding was cut by a wealthy banker who probably didn’t want electricity to be free as a public good. Yet his research was of such great significance for the potential it had to upend the energy production status quo that it was confiscated by the FBI after his death.

Earlier in 1893, at the Chicago World’s Fair, he had proven the concept of wireless electricity in an exhibition room. For this, he invented a type of wireless power transfer (WPT) called resonant inductive coupling. To the amazement of bystanders, he demonstrated that electricity could be transmitted and used wirelessly. 

With this invention, Tesla lit up lamps with no wires. He called it “cold light” created in glass tubes containing gases when close to an electric current moving through the air in the room. He wrote a 1901 newspaper article describing his experiments.

How does resonant inductive coupling work?

Tesla generated electricity wirelessly through resonant inductive coupling using another of his well-known inventions: the Tesla coil. This device is a special type of transformer consisting of two loosely coupled resonant circuits. It is capable of producing extremely high-voltage, high-frequency, but low-amperage alternating current (AC) electricity inside a strong magnetic field. 

In a Tesla coil, electrical charges can jump across an air (spark) gap as arcs. The maximum amount of electricity that can be transferred across an air gap occurs when the two circuits oscillate at the same frequencies. Tesla claimed that his wireless electricity could be transferred with only a 5% energy loss. 

How did Tesla plan to take wireless electricity around the world?

Tesla’s vision with resonant inductive coupling as a form of wireless power transfer was to apply it on a grand scale and take wireless electricity around the world. One of the ways he hypothesized it could occur was by tapping into the Earth’s resonance. 

Based on many of his experiments, Tesla came to view the Earth as a massive electrical power conductor that could be made into a generator. First, he observed that the Earth possessed a natural electric charge with its own specific vibrational frequency. 

Then he hypothesized that by matching the planet’s frequency with that of an electric oscillator, and stepping it up further with a magnifying transmitter — instruments which he also invented —  he could excite a low-frequency ground wave called the Zenneck surface wave. The Earth’s electric current would travel via these waves underground, producing wireless electricity anywhere in the world.

So it was feasible to Tesla that he could run AC electricity across the Atlantic Ocean not with wires but through the underground tunnels located around his lab and the Wardenclyffe Tower in New York. The Tower itself was 100 ft. in diameter and over 200 ft. high. 

Researchers speculate that “…the deep tunnels seem to have been constructed to increase earth coupling for grounding and/or to initiate standing waves for the projection of electricity to remote locations.”

According to Tesla’s view, by tapping into the electric current traveling underground through the Earth’s own natural resonance, you could access the electricity anywhere on Earth — without wires.

In Tesla’s own words: “When wireless is fully applied, the earth will be converted into a huge brain, capable of response in every one of its parts.”

Here is a copy of an original drawing from Tesla’s 1907 patent application for “an apparatus for transmitting electrical energy”:

As of today, no company has seriously picked up the torch lit by Tesla. Instead, the world relies on an antiquated electric grid, ironically also developed in part by Tesla. In the United States, except for 13% from wind and solar energy sources, fossil fuels (coal and gas) supply over 60% of the electric grid. This fossil fuel burning is fueling the climate crisis today.

Did Tesla complete his global wireless electricity experiment?

Because Tesla’s employer, the Westinghouse Electric & Manufacturing company, had so heavily invested in building the grid’s infrastructure in the United States — with Tesla’s ingenuity behind it, of course — they were unwilling to forego its money-making potential and take a risk on developing Tesla’s wireless electricity. 

At the time, the cause-and-effect relationship between fossil fuel burning and climate change was not well known, even though a few scientists had predicted and demonstrated the global warming potential of carbon dioxide.

Notable among them were the first researchers doing climate science: Eunice Newton Foote in 1856 and John Tyndall in 1859. 

In 1938, G.S. Callendar showed for the first time that it was “artificial” (human-caused) fossil fuel burning that was increasing carbon dioxide in the atmosphere as well as the global temperature.

What are the consequences of using the electric grid instead of Tesla’s wireless electricity?

At the turn of the 20th century, with Westinghouse’s Tesla in charge, human civilization was on track for burning up the stored carbon from millions of years of plant and animal decomposition in order to keep the grid working. Today, just 100 years or so later, humanity is beginning to experience the adverse climatic effects largely resulting from that choice. 

Known for high transmission losses — over 13% in some states as the diagram below shows — and prone to shutdowns during peak demand times, the electric grid is not the most efficient way to power a country. High-voltage wires strung on wooden poles are vulnerable to climate crisis-intensified storms.

Further, there is evidence that aging equipment is a prime cause of some wildfires in California.

Today, there are new problems for the grid. With the push toward renewable energy, electric vehicles, and electrification of all sectors, some researchers provide evidence that there is serious doubt whether the present grid can handle the heavy loads that are increasingly being put on it.

There is no question that the company that makes wireless electricity for the world — as Tesla envisioned — on a commercial scale will not only save the day (and the world) with clean, green power. This company will likely earn billions in profits.  

From nanocrystal electricity to wireless power transfer (WPT) 

The core concept of producing, transmitting, and consuming electricity without wires is at the heart of all wireless technology, including wireless power transfer (WPT). However, there are no nanocrystals involved in any of the technology arising from companies innovating in the WPT space today.

As explained earlier in this article, nanocrystal electricity was a hyped-up scam by investors meant to attract people looking to invest in “disruptive” green technology. WPT is somewhat like what the nanocrystal electricity scam envisioned: electricity traveling wirelessly to power devices across a distance.

However, don’t think WPT is brand new. It’s been around for at least a century, but just not marketed as WPT is today.

What is wireless technology and wireless power transfer (WPT)?

Have you ever heard of radio telemetry, satellite communications, or radio frequency identification tags (RFIDs)? They are examples of wireless technology.

Here’s a brief rundown on what these early forms of wireless technology do:

1. Radio telemetry 

Telemetry uses sensors to collect data (current, temperature, pressure, etc.) from a remote location. The information is converted to voltages, combined into a single stream, and transmitted. Upon reaching a receiver, the data are separated and analyzed.

The first time telemetry was used in the early 1900s; it moved data from power plants to a central office via telephone lines. So, it wasn’t truly wireless at the start. 

In the early 1960s, radio telemetry became widely used to track wildlife at a distance. Very high frequency (VHF) radio telemetry is currently the most commonly used practice for animal tracking. Besides a transmitter and receiver, an antenna is involved. Animals are given their own frequencies in the 30-300 MHz range allowing specific individuals to be tracked for long periods.

2. Satellite communications

Satellites and other spacecraft take photos and collect data on their current status and location. They communicate this information via radio frequency waves beamed down to large antennae on Earth. One antenna could be over 200 feet in diameter. The antennae make up the Deep Space Network (DSN) and are located around the world.

Similarly, space agencies send information to satellites via the DSN. An example is a list of instructions for a repair.

Here’s a photo of the Mars Antenna in California.

3. Radio frequency identification (RFID) 

Radio frequency identification (RFID) is a form of wireless power or communication based on radio frequency waves. It dates back to the 1940s. RFID can uniquely identify a person, animal, or object.

RFID systems consist of three components:

• Scanning antenna
• Transceiver
• Transponder 

The antenna and transceiver may be combined in a reader (either portable or stationary). The transponder is in the RFID tag.

Readers and tags “talk” to each other via radio waves. First, a reader sends out a signal to activate a tag. Then, the tag responds with a signal of its own. The signal is translated into data such as location. Tags may have their own power source (batteries). Or, tags could run off of the power supplied by a reader through electromagnetic induction of an electrical current in the tag.

Simple RFID tags are smart labels that feature a bar code. No specialized equipment is needed to print out an adhesive smart label and display it in a store.

Common applications of RFID technology include:

• Passports
• Pet tracking
• Inventory 
• Vehicle tracking
• Shipping
• Healthcare
• Some credit cards

Wireless Technology: Then and Now

Wireless technology has undergone significant development since its debut in the early 1900s. Begun as a way to transmit data without wires, it now also moves electrical power wirelessly. Thus, its name: wireless power transfer (WPT).

Initially, WPT transmitted only very small amounts of power in the microwatt to milliwatt range. By contrast, modern WPT moves a few watts up to several kilowatts over larger distances.

In recent years, WPT has exploded to include cell phone, tablet, and drone charging, stationary charging of electric vehicles (EVs), and dynamic charging of EVs known as road-powered EVs (RPEVs).

For EV applications, industry has created a special branch of WPT, called inductive power transfer (IPT).

The diagram below gives an overview of the many types of WPT in existence today. The schematic indicates the way power passes over the air gap between the transmitter and receiver.

What is Qi charging?

In 2008, the Wireless Power Consortium (WPC) developed standards for wireless battery charging, also called Qi (“chee”) charging. The standards apply to both inductive and resonant WPT technologies.

Here is the Qi logo on a charging pad:

Inductive charging often involves use of a charging pad. Resonant charging may not need a charging pad.

Qi charging up to 15 watts is possible today. Note that not all devices on the market today have met Qi standards. Look for the Qi logo to be sure.

As of this writing, 9,113 gadgets are qualified by the WPC. This means they have undergone testing and completed the certification process. The fields they create will not harm sensitive equipment such as implanted medical devices. Qi-registered products can be safely charged with Qi-certified chargers. Visit the Qi database to see if your device is certified.

Are the electromagnetic fields produced by wireless charging harmful to human health?

Wireless charging produces an electromagnetic field (EMF). Most experts (but not all) do not consider it to be harmful to human health because the levels are so low.

However, if you have very sensitive equipment, such as some implanted medical devices, it could cause a disturbance.

When EMFs become more powerful and ever-present with advanced WPT technology, wireless charging could present more of a health hazard. Currently, EMF radiation is highest very close to charging pads. There is none when there is no device on the charger being charged.

If you’d like to measure the EMF generated by your wireless charger, this portable gizmo, a Trifield TF2, will deliver all the data you need to make your assessment.

WPT company profiles

Here’s a brief look at what’s going on and what’s up and coming in the wireless power transfer (WPT) world in 2022.

Energous

Energous  are developers of WattUp, a government-approved and -regulated technology for desktop, near field, and far field charging, Energous is a leader in the WPT space. The company uses radio frequency (RF) waves to power devices wirelessly. 

Energous wireless products work through a transmitter and receiver. The transmitter sends energy via radio waves to a WattUp-enabled receiver in a chargeable device. The receiver converts the radio waves into DC electrical power that charges the device’s battery.

As of today, the maximum distance between transmitter and receiver allowable for Energous’ power transfer of up to 15 watts is 15 meters. Placing transmitters in a long string — always 15 meters apart — will permit unlimited wireless transfer. 

The WattUp technology uses radio frequencies that are different from those used by WiFi or Bluetooth, so interference is not a problem. 

Currently, Energous is focusing on batteryless tags and radio frequency identification (RFID) tags for various commercial applications. This work will eliminate the need for batteries. 

One of Energous’ latest projects is developing a low-power carbon dioxide sensor. This technology can be used in monitors for indoor air quality.

According to the Energous website, the company holds over 200 patents. It is approved to ship its products in 112 countries including the European Union and North American markets.

Powercast

Powercast WPT is based on radio wave (RF) energy to power devices via transmitters and embedded receivers. Once the receiver transforms RF energy to DC electrical current, the energy could be used to power a batteryless device or to recharge a battery already in the gadget.

Some of the applications of PowerCast products include:

• RFID (radio frequency identification) used for environmental monitoring
• Battery recharging for wearables and other consumer devices
• Batteryless price tags 
• Smart cards
• LED-based packaging.  

Powercast’s wireless technology automatically turns on when it senses that nearby devices need charging. Similarly, it deactivates when they’re fully charged. Alternatively, Powercast’s products can be set to deliver power continuously, or on a scheduled basis.

WiTricity

Electric vehicle (EV) charging by WiTricity is painless without cables or cords using highly resonant WPT.

Invented by Massachusetts Institute of Technology professor Marin Soljačić in 2005, this type of WPT couples the magnetic fields of two specialized devices with closely matched resonant frequencies into a single continuous magnetic field. This coupling enables the transfer of electrical power from one device to the other at high efficiency and over a long range.

With this WPT technology, charging an EV is as easy as driving up to a designated spot (like your garage) and recharging automatically. No need to plug in your vehicle, or even get out of the car. But if you’re worried about EMF radiation, you’d want to get out.

The WiTricity system is composed of three parts:

• Wall box that converts a power source, such as the electric grid, to high-frequency energy delivered to the charging pad.
• Charging pad contains the coil and associated parts that transforms the high-frequency energy into a magnetic field that enters a receiver in the EV
• Vehicle receiver captures the energy from the magnetic field and converts it into the DC electrical current that recharges the battery. 

WiTricity WPT will operate efficiently to charge all types of EVs.

Ossia

Started in 2008 as Omnilectric, Ossia is a wireless tech company using radio frequency waves to power devices at a distance. 

Through its flagship product called Cota, radio frequency waves carrying power travel from transmitters to receivers embedded in a wide range of electronic devices. Cota charges them wirelessly.

So far, Cota technology is used in consumer electronics, medical devices, industrial equipment, and automotive applications. There is no charging pad or wires used.

Without being tethered to a charging pad, users can walk around holding their device while it’s being charged. Cota technology is built to allow the receiver’s beacon signal to use walls and objects, but never pets or people, to find a path to a transmitter. 

Ossia holds over 180 patents, and its products are approved for sale in over 45 countries.

Final thoughts on wireless technology, wireless electricity, and nanocrystal electricity

Nanocrystal electricity was the enticing tech stock buzzword that investors didn’t flock to, suspicious of it being a scam. Investors touted it as the way to revolutionize human civilization by making electricity flow via tiny nanocrystals instead of wires. The investors attempted to attract big money to so-called nanocrystal electricity companies supposedly developing this technology.

Nothing materialized from the investors’ efforts in nanocrystal electricity. There is some work in research labs on using nanocrystals to create electricity, mostly in photovoltaics.

The invention of wireless electricity belongs to Nikola Tesla at the beginning of the 20th century. Although he didn’t fully realize its potential, several companies are working today on developing a type of wireless technology called wireless power transfer (WPT). 

Employing principles of radio frequency (RF) waves, ultrasound, lasers, or magnetic resonance, these companies are transforming how electricity is transmitted and consumed. 

For example, it’s now possible to recharge small electronic devices and electric vehicles wirelessly. There’s no need for a separate charger, bulky plug, or electrical outlet.

With each new development in wireless technology, it may soon be widely available to everyone to recharge gadgets and electric cars without charging pads. Maybe one day wireless technology will power your home and office, too.

These increased costs are no surprise: heating and cooling represent 47.7% of the energy we use in our home, followed by appliances, electronics, and lighting at 34.6%. To make matters worse, a large amount of home electricity usage comes from idle devices.

For those that are looking to reduce their energy usage and cut costs on spending, prepaid electricity can be a great way to do so. You can even opt for free electricity on nights and weekends with some plans.

However, you must weigh a few critical considerations before signing a contract for a prepaid electricity plan. This guide will highlight everything you should know about prepaid electricity.

What is prepaid electricity?

Prepaid electricity is an electric plan that allows customers to control electricity use by paying before using electricity. Due to their deregulation laws, these plans are available in states like Texas and Maryland.

This pay method encourages customers to opt for a more mindful utilization of energy, and move towards using more efficient electronic equipment at home or in the office, consequently avoiding power waste.

It poses a win-win perspective for both consumers and utilities. On the one hand, it allows users to keep track of energy consumption and enables low-income families to access this precious utility.

For utilities, prepaid electricity potentially reduces the number of unpaid bills each month and power theft, two issues that carry important economic losses for suppliers. A handful of well-known utilities offer these services for affordable rates, like Direct Energy and First Choice Power of Texas.

Prepaid electricity around the world

Prepaid electricity has been shining a light on the electricity needs of different countries. It has solved electrification problems in certain villages of rural India, and played a key role in the electrification of South Africa’s post-Apartheid.

However, this concept is not limited to developing countries, where electricity access is often restricted to a share of the population. Prepaid electricity also applies to first-world countries that consume higher energy rates and need passive means to control and lessen power use.

As novel as it might sound, prepaid electricity has recently gained popularity.

According to a forecast made by the Northeast Group LLC, a smart energy infrastructure intelligence company based in Washington DC, electricity is projected to become the next big growth market in the prepaid offerings field. The firm estimates that there will be an investment of $11.4 billion in prepaid metering for the coming decade.

Indeed, market projections point to prepaid electricity becoming a top player in Africa’s electrification process.

Predictions do not only target Africa as a driver of the prepaid service expansion but also foresee a high prepaid electricity penetration taking place in South and Southeast Asia, where the power theft rate is as high as the number of unpaid bills.

Nigeria, Zimbabwe, Uganda, Kenya, Rwanda, South Africa, Bangladesh, India, and Indonesia are some of the countries where the prepaid modality is already being offered.

Developed countries like Belgium, the U.S., and the U.K. have also joined the movement.

How does prepaid electricity work?

Prepaid electricity bases its operation on Advanced Metering Infrastructure (AMI), a state-of-the-art technology that involves systems and networks for measuring, collecting, storing, analyzing, and using energy consumption data.

Measurements are carried out in a detailed and frequent time-based fashion. Then, data is wirelessly transmitted to the utility company for monitoring and billing.

The plan is so practical and flexible that its applicability is not only limited to electricity; it has already extended to other utilities, like water and gas.

Opting for a prepaid electric service requires you to have a remotely-operated smart meter in charge of sending your home’s power use information to your electricity supplier.

Smart meters eliminate the need to have a technician come by to read your meter manually on a regular basis.

The type of meter you already have installed in your space will determine the ease of connection to prepaid electricity. The process will be quicker and more straightforward if you already have installed a smart meter that can operate remotely.

If you don’t have this technology yet, a technician will come to your home to install and configure your smart meter.

Setting up your plan

Once the service is connected, the remaining steps to prepaid electricity are as simple as purchasing anything online from any other supplier.

You’ll have to go to the service provider webpage, create your account with your username, password, billing information, and address, and choose the prepaid plan that works best for you.

It is easy to recharge your meter with this type of plan as well. Here are a few of the ways you can recharge your smart meter:

• By phone
• Online, on the provider’s website
• At an in-person kiosk
• Directly drafted from your bank account
• Via mail
• Through money transfers like Western Union or Moneygram 

All in all, the process is easier than ever. Conveniently, some companies are even relying on apps that you can download on your smartphone or tablet to add balance and track your power use from anywhere.

Monitoring your consumption

Customers of the prepaid electricity service have their meters remotely read every day, and if they want to monitor or check their energy use, it is possible to do it by logging into their account on the company’s website, receiving daily notifications by text messages or emails, or via your app if your electric company has one.

The notification will show you how much electricity you have consumed and how much is left according to your balance; that way you can keep track of your power consumption throughout time.

Typical notifications will show:

• Kilowatt-hours consumed for the day
• Remaining balance in the local currency 
• Savings for the day
• Estimated days remaining

Some notifications go even further and break down your energy use. They also show you suggestions on how to lower electricity use according to your data.

Typical ways to reduce energy use at home include turning some lights off while not using them, raising the indoor thermostat a few degrees up in the summer or down in the winter, turning fans on in the summer instead of the AC, and so on.

Benefits of opting for prepaid electricity plans 

A number of benefits come with opting for prepaid electricity plans, like saving money and becoming more eco-conscious.

Easy setup

Most companies allow customers to enroll in pay-as-you-go plans without a deposit, credit checks, ID, or social security number, which are no doubt necessary to access utilities in traditional ways.

The setup process for prepaid electricity is incredibly easy and can be done quickly, saving you both time and money.

Sustainability

In general, a prepaid electricity program is associated with a 12% reduction in electricity consumption.

Because a prepaid service gives you the tools to track your own power consumption, it is quite probable that this process will make you more conscious about your personal electricity use.

That energy awareness might even motivate you to take further steps at home, like swapping old incandescent lighting and inefficient electronics for more energy-efficient equipment.

Flexibility

Since your electricity is paid for beforehand, you will no longer get energy bills at the end of each month. This also eliminates issues with overusing power, so you won’t have to deal with surprisingly high charges each month.

What if this month you can make it until the end of the month with extra money in the bank?

It is not obligatory to fund the whole cost of the plan. As long as the meter has a positive balance, electricity will enter your home, depending on how much is left in your account.

For example, if you are going on vacation this coming month for 15 days, you only have to pay for what you think you’ll consume during the rest of the month. Then, grab your luggage and go on vacation without the headache of having to deal with the energy bill once you come back.

Cost savings

Because your payment is directly tied to your energy usage, you can gain an accurate reading of your usage each period and adjust it accordingly whereas before, you may have been overpaying for the amount of energy you actually use.

In addition, the energy-efficient changes you make throughout each period to lower your energy consumption will save you money in the long run. Over time, you’ll be able to rely on less energy to power your home.

What are prepaid electricity plans like?

Service providers design various prepaid electric plans for customers to choose from according to their consumption and preferences, allowing clients to opt for a package that adapts to their necessities and saves money on their electricity bill.

Getting cheap prepaid electricity will depend on how careful you are while choosing your plan. The plans can vary greatly – some do not require contracts, while others hold you to a 36-month-long commitment. Month-long plans are also available for some companies.

However, it is strongly recommended to read the terms and conditions of your potential plan, since different restrictions apply for each plan.

Depending on your contract type, the price per kWh can be fixed according to your electricity use, or you could also pay an average price per kWh that is subject to variations. In this case, if the electricity price drops, so will your power bill as well.

Some companies also include 100% green energy or a share in the total supply. In this care, make sure that the company offers an energy certificate, so you know that you are getting what you are paying for.

Free nights and weekends

Some companies incentivize the use of prepaid electricity during off-peak time through the implementation of free nights and free weekend plans. This concept is known as time-of-use rates or TOU rates.

Energy companies offer these kinds of plans because, generally, high energy usage is expected in winter and a smoother curve is more likely during summer when heaters are off. A similar story occurs throughout the day: energy usage is higher during the daytime than at night.

But are these hours actually free? Remember that in exchange for ‘free’ electricity, you may be required to pay a considerably higher rate for your non-free electricity periods. The free nights and free weekends plans will always come with an associated cost at the end, as low as it might be.

If you’re considering opting for a free weekend or nights prepaid electricity plan, compare the plan’s rates and hours against your schedule and your willingness to do chores or cook at night, for example.

Having cheap prepaid electricity will depend on how adjustable your schedule is to the plans your company offers, and how carefully you read the terms of the plan you are going for.

Frequently asked questions about prepaid electricity

Have more questions on prepaid electricity? Let’s dive into the most frequently asked questions about these plans.

Does prepaid electricity involve lower supply quality?

A prepaid service does not imply a decrease in service delivery or support quality.

On the contrary, clients who have taken that road seem to enjoy better customer service than those without a prepaid electricity plan. This could be due to the flexible way in which the service is being distributed and managed.

How do I know prepaid electricity is right for me? 

There are a few considerations you can ask yourself to know whether or not a prepaid electricity plan is right for you: 

• Do you prefer to pay as you go?
• Do you prefer not to pay a deposit upfront?
• Are you ok with not receiving a monthly paper bill?
• Do you want to reduce and monitor your energy usage?
• Do you want to be able to split energy costs with your roommates?

These are all elements of prepaid electricity plans, so certainly consider them to know what you’re signing on to.

Where can I get prepaid electricity?

The service already exists in over 30 states, with a large presence in the Southeast and Midwestern states such as Illinois, Indiana, and Missouri.

In Texas alone, over a handful of competitive electric providers are already offering prepaid electricity plans, including:

• Direct Energy
• First Choice Power
• Reliant Energy

How can I avoid having my prepaid electric service disconnected?

Continued prepaid electric service depends on you prepaying for service in advance. It is important to keep your account balance at or above the disconnection balance, or your service may be disconnected.

If your current balance falls below the disconnection balance, your service will be disconnected with little notice. You will be notified one to seven days before your account balance is expected to fall below your disconnection balance.

Final thoughts on prepaid electricity

By 2021, over 2.62 million people in the U.S. will be part of the prepaid electricity service. With this in mind, over 200 electric utilities are already offering or are planning to offer prepaid electricity based on AMI.

Suppose you’re looking for a way to cut down on energy costs, create a more energy-efficient home, and gain more flexibility with your energy usage? In that case, prepaid electricity may be a great option for you.

A variety of public-private partnership initiatives incentivize the use of wood pellets as a fuel source, but are wood pellets really as eco-friendly as stakeholders claim? 

In this article, we take a closer look at wood pellets, their production, energy efficiency, and sustainability to answer the question, are wood pellets green?

What are wood pellets?

Wood pellets are a type of biomass fuel made from compressed untreated lumber byproducts like shavings, chips, and sawdust. The wood used in wood chips is usually industrial waste from the lumber milling industry, furniture manufacture, or construction, though virgin wood is increasingly used to create pellets for burning.

Wood pellets are created in large volumes by compacting wood waste in a hammer mill, then forcing the massed wood through a die hole to create a sausage-like pellet of the required dimensions. As the pellets are extruded, the lignin in the wood heats up and bonds the pellet constituents together for easy transport, handling, and storage.

Wood pellets are a renewable energy resource

Wood pellets are considered to be renewable because the wood used to create them can be replaced by planting young, fast-growing trees. Pellets use large amounts of the woody waste that the lumber and manufacturing sectors generate, along with leftover virgin wood from coppicing and land management. 

The energy efficiency of wood pellets

Wood pellets are energy efficient compared to other biomass sources like animal manure, biomass crops, and chemical recovery fuels (biodiesel). This is because many biomass fuels contain a lot of moisture that increases the weight and bulk of the fuel but deteriorates its combustion performance.

Wood pellets enhance their energy efficiency by being exceptionally dry. Most commercially used pellets have a moisture content of 10% or less. The pellets are made by condensing wood chips and flakes under high heat and pressure to make an energy-dense pellet that burns drier and hotter. The addition of natural binders like starch that hold the wood chips together. 

Each tonne of wood pellets has an energy content of 4.6–5.1 MWh/ton with a combustion efficiency of up to 85%. This is equivalent to:

• 500 liters of heating oil (enough to heat the average family home for up to six months) 
• 170 gallons of propane (enough to meet the needs of a 500 sq foot home for over 200 days)
• 16,000 feet of natural gas
• 4,775 kWH of electricity

The pellets are uniform and their energy density is high with predictable energy release, unlike the much lower and variable energy density of biomass or solid wood.

How are wood pellets used?

Wood pellets are a versatile fuel source for both consumer and industry use. Here are the main uses of wood pellets: 

1. Domestic heating and cooking

People use wood pellets in domestic wood pellet-burning stoves and furnaces for home heating and cooking. Manufacturers design these stoves to cope with the high temperatures of wood pellets. The energy density of wood pellets makes them great value for money. When used correctly, these stoves produce very little smoke because of the efficient combustion of the pellets.

2. Power plants

Renewable power stations use wood pellets as a sustainable fuel for generating electricity for the grid. A notable example is the UK’s Drax power station, one of the largest in Europe, which was converted from burning coal to using wood pellets imported from the US.

Drax power station burns 7 million tonnes of wood pellets annually to generate up to 5% of the UK’s electricity.

3. Industry

Wood pellets are being adopted as an alternative energy source for industry. Wood pellets can run industrial boilers for generating heat or electricity for industrial processes. Businesses are keen to use wood pellets because of their high burning efficiency, lower carbon emissions, and easy handling and storage of the resource. 

Why are wood pellets considered ‘green’?

The European Union is one of the primary advocates for wood pellets being a green energy solution. This is baked into the 2015 Paris Climate Agreement which states that the burning of trees to generate heat and electricity is carbon-neutral if new trees are planted to replace the trees that are used. 

Trees are considered a valuable carbon sink, and the planted forests will help remove the CO₂ generated by burning from the atmosphere.

But are wood biomass pellets really ‘green’?

The push for the widespread adoption of wood pellets as a leading fuel source is controversial. Governments who are keen to present wood pellets as a viable renewable alternative to coal and gas have highly incentivized wood pellets.

The apparent energy efficiency, low emissions, and sustainability of wood pellets make them attractive to industry stakeholders and consumers. Wood pellets also have the potential to open up new commercial opportunities based on the production and processing of the pellets. But scientists are divided on whether or not wood pellets provide a net environmental benefit. 

Burning wood pellets still produces air pollution

Though burning wood pellets does not generate the same amount of carbon dioxide, sulfur, mercury, and other unwanted emissions as coal, the pellet-burning power stations are still polluting in real-time. Even with the offset of planting new trees, burning wood pellets can still breach emissions limits and harm the health of surrounding communities.

The production of wood pellets is energy intensive

Closer examination of the production of wood pellets reveals it is an industrial process that consumes a lot of energy. Here are some of the most energy-intensive aspects of processing wood into wood pellets:

• Debarking and washing the wood (factories can also use stripped bark as an energy source)
• Drying the wood with gas dryers
• Processing hardwoods rather than pine for the pellets
• Running pellet presses 
• Pressing the pellets down to a 6 to 8 mm diameter using a 500 horsepower press

Export and transportation of wood pellets add to the CO₂ footprint

Wood pellets clock up extensive mileage after manufacturing, using road rail and sea to reach the end user. Transportation, loading, and unloading of the wood chips consume fuel and add to the CO₂ emissions across the lifetime of the pellets. 

Sea transportation has variable but noteworthy energy and CO₂ costs, especially if the pellets are being transported between continents.

The use of virgin wood is controversial

The sources of wood for pellets have included trees specifically cut down for pelleting. This is in contrast to pellets made from wood scraps or treetops, underbrush and smaller branches left over from logging. Drax has been accused of procuring logging licenses to harvest wood from environmentally important forests in British Columbia.

Wood pellets are only renewable if fast-growing trees are replanted

A critical aspect of the sustainability model for burning wood pellets is the replenishment of forestry resources by fast-growing trees. The trees are essential to offset the carbon footprint from burning the wood pellets. 

But the replacement trees used on plantations are not always fast-growing species that can quickly mature into a carbon sink. There is also the issue of privately owned forests and plantations potentially being sold off for development in future with the loss of planted trees.

Wood pellets are heavily subsidized

One of the most important considerations is that the wood pellet industry is heavily subsidized by governments in the US, UK, and EU. The favorable legislation and funding have made wood pellets able to compete with non-renewables, despite their high processing and import/export costs. 

In the EU, wood pellets are seen as a solution for meeting the Renewable Energy Directive target of 20% of energy sources used across the continent being renewable. The pellets are also seen as a cost-effective way to bring down greenhouse gas emissions, even though the pellets are not emissions-free. 

In response to the funding, a range of business interests have invested in building pellet plants and forestry resources for the wood to be used. However, the political interests in making wood pellets ‘work’ may do so at the expense of its long-term viability. 

Rounding up

As you can see, the use of wood pellets as a sustainable fuel source is controversial. Scientists have carefully modeled the sustainability case for wood pellets but many variables are involved, not least the replanting and ongoing maintenance of forestry resources. 

But, without this carefully balanced model, burning wood pellets is just as green as burning anything else. 

The installation of solar panels is one of the more popular strategies for reducing dependence on the grid, with 6% of US homeowners owning solar panels and a further 49% giving solar panel installation serious thought. 

Adding solar panels to make the most of long hot summers and savings on sky-high AC bills makes a lot of sense. But home solar panels are incredibly expensive, even with generous state and federal tax incentives. 

Owning solar panels is a big investment, but is leasing any cheaper in the long run?

To help you make the right decisions we have produced this guide on leasing vs buying solar panels. Our guide to leasing vs buying solar panels should help you evaluate the pros and cons – of leasing or buying solar panels on your property and includes the key differences between buying and leasing solar panels.

So set aside a few moments to read this informative guide which should equip you with the information you need to decide whether buying or leasing solar panels is the right option for you.

Leasing vs buying solar panels – what’s the difference?

The key difference between buying and leasing your solar panels comes down to one word: ownership. 

Both options are going to cut down your electricity bills but only one lets you own the panels. With a purchased solar panel installation you are the outright owner of the system, whereas leased solar panels are installed on your property, but owned by the company that installed them. 

Let’s take a closer look at the features of these two arrangements. 

Leasing solar panels 

Taking out a solar lease is a common option for property owners who want to install solar panels but do not have the $20,000 up front to purchase a system outright. Solar panel system prices have dropped by at least 70% in the last decade but they are still pricey. By leasing, you pay a solar company a low monthly fee while enjoying the low bills that come with solar panels.

For solar leases, you deal with the solar company to set up your solar panel system, while a separate financing company administrates the lease on their behalf. You handle the monthly payments regardless of the amount of energy the panels actually generate. 

The solar company owns and is responsible for the maintenance of the system.

With leasing, you still get all the benefits of the electricity generated on your property. If you produce more electricity than your property needs, the panels send the excess power to the grid, earning you metering benefits that drive down your bills even further. But you’ll still pay for the energy you use when solar production is low. 

Buying solar panels

If you want to fully own your solar power system, buy it. There are several ways in which you can have your ideal solar panel system, complete with panels installed in your home:

1. Purchase a turnkey solution that includes both the solar panels and their wiring into your home’s electricity supply with the necessary metering and controls. Pay for the panels and installation in whole, upfront.

2. Purchase a turnkey solution that includes both the solar panels and their wiring into your home’s electricity supply with the necessary metering and controls. Pay for the panels and installation in installments using a loan or hire-purchase arrangement (HPA).

3. Purchase solar panels and hire a contractor to install them on your property.

4. Buy solar panels and install them yourself with the help of a local electrician.

Most homeowners value the expertise of a solar installer who can source and install suitable solar panels for the property. If you cannot pay in full for the solar panels, the company works with partner companies that arrange the financing for the panels. 

This arrangement is known in the industry as a solar loan and involves monthly payments for a fixed term. 

Owning solar panels comes with maintenance responsibilities that leaseholders do not have. However, the energy that is generated and all the long-term savings are 100% yours. 

Pros and cons of leasing vs buying solar panels

Now you understand the difference between buying and leasing solar panels for your home, it’s important to know the implications of each option. There are important pros and cons for leasing (and for buying) that will affect your return on the investment of installing your solar panels. 

Here’s what you need to know:

Pros of leasing your solar panels 

There are plenty of advantages of leasing vs buying solar panels. Let’s take at some of the pros, to help determine if the positives potentially outweigh the negatives. 

1. Almost zero upfront cost

If you cannot pay the upfront cost of solar panels but need some relief from sky-high power bills, solar panel system contracts can provide lease arrangements that provide turnkey installations of panels with almost no immediate costs. Simply keep up with your monthly repayments for the duration of the lease.

2. Maintenance-free solar panels

A big benefit of leasing solar panels is that you escape the responsibility and cost of maintenance and upkeep for them. This aspect of the leasing arrangement is reassuring, because you’ll always know that the solar company will handle any problems.

Cons of leasing solar panels

Along with positives, there are also downsides to leasing vs buying solar panels. Some of these are well known negatives, and you have to be careful to make sure you don’t get stung:

1. You don’t own the solar panels

The bottom line is that with leased solar panels, you don’t own the panels, meaning you’ll miss out on some pretty important benefits of owning them, such as increasing your property value. The savings you’ll enjoy would be better with ownership as they aren’t offset by monthly installments. 

2. Monthly bills

After all the effort to reduce monthly bills by generating solar power, with leasing, you get an additional bill. But for most solar panel lease arrangements you are switching a larger energy bill for a smaller electricity bill and your lease payment.

Solar lease payments can be a bit of a headache because they often increase year-on-year because the lease payment is pegged to any predicted price rises in electricity. Another issue is that if you generate little solar energy with your leased solar panels, you will still pay for power from the grid while paying a fixed lease payment.

3. Missing out on incentives and tax breaks 

When you lease solar panels, you don’t own the system you’ve had installed, making you ineligible for a variety of state and federal rebates and incentives for solar panels. 

These incentives are paid to the lease company instead. This is an important reason to consider buying as incentives often make buying solar panels great value for money, as we explain further on. 

4. Introducing difficulties in selling your home

Once leased solar panels are on your home, you have someone else’s property and that can complicate things if you want to sell your home. The lease contract may mean that the panels have to remain in place for a certain period, or you may have to transfer the lease to a new owner. 

If you cannot transfer the panels, you face significant costs to break the lease. Some companies may provide the option of buying back the solar panels which could increase the value of your home but without this option you’re stuck!

Pros of buying your solar panels 

If you have the cash, owning your solar panels is a great investment in your property. Here are the need-to-know benefits:

You own your solar panels

This means that the panels, electronic hardware and‌ the energy that is generated is 100% yours! Even if you pay by installments, you will have no further bills once the payment term is finished, leading to substantial long-term savings on energy costs. 

You are eligible for SRECs

Did you know you can generate a decent income from your solar panels with solar renewable energy certificates (SRECs)? Most state offer SRECs, a financial instrument that pays you money for each MWh of electricity your panels generate for the grid. The exact amount you earn varies by state but SRECs are only available to solar panel owners. 

You are eligible for federal tax credit

People who lease their solar panels are missing out on a variety of federal and state incentives for generating renewable energy. Federal tax credits are a great reason to own because they can save you up to 30% of the cost of purchasing and installing your solar panel. If you lease, the solar company gets national incentives and tax credits your property earns. 

Increase in house value

Solar panels provide an appreciable uplift in the value of your property, as much as 5%. This is not only because the property now has its own renewable energy source but also because of the SRECs it earns. 

This will make your property highly desirable to prospective buyers as your property generates energy as well as income.

Cons of buying solar panels 

While there are plenty of reasons to buy and own solar panels, it also has its disadvantages too. The main downsides of ownership are:

The cost

If you want to own your solar panels, you’re going to have to pay out a large sum. The Solar Industries Association (SEIA) reports that the average residential solar panel system costs almost $3 per watt. This means you be paying at least $11,000 for a 5 kW system. The average homeowner needs to be prepared to spend up to $20,000 to own their own solar panels.

Maintenance responsibilities

Once you own your solar panels, you are 100% responsible for the condition and maintenance, especially if you have cleared a warranty period. Leaseholders don’t have the stress and expense of dealing with damage or breakdowns as solar panel companies include it in their monthly fee. Remember to keep the panels clean so they can capture sunlight efficiently.

Potential for disappointing performance 

Nothing could be worse than paying out a capital sum for your solar panels and finding that they don’t generate the amount of electricity you expect. This is a real risk for any solar panel installation. 

Many homeowners hire the services of professional solar trackers who plot the course of the sun over the property for a period to calculate the best orientation of solar panels. 

Solar panels stay with the property

Solar panels are often purchased for a ‘forever’ home simply because owners invest in them for a lifetime of benefit and do not intend to move. Though you could technically remove the panels and hardware from your property if you move home, the solar panels will have been specifically fabricated, oriented, and installed for the property and may not be as effective elsewhere. 

Leasing vs buying solar panels – so which is better?

The decision to opt on leasing vs buying solar panels really depends on your personal circumstances and your finances in particular. Here are some considerations that can help you decide if leasing or ownership is going to be better for you: 

Your age

If you are older and approaching retirement, leasing may make great sense.

Rather than spending a lump sum from your savings or a future inheritance on outright ownership, you can pay a monthly fee out of your pension while reducing your utility bill. You also don’t have the stress or hassle of maintenance.

Young families should definitely buy. If you are still under forty, purchasing solar panels is one of the top two best investments you can make, right alongside buying your own house. And that investment gets even better if you live in a region where you get credit for the extra energy you create. You have the time to enjoy long-term savings and pay off a loan for the purchase.

There are also ways to go solar without upfront costs. Check our guide to free solar panels to learn more about the options.

Your cash flow

If you are asset-poor but cash-rich, you may find it convenient to get the benefits of solar panels for a regular monthly fee. Leasing solar panels can free you up from the details and you don’t have the worry of wondering if the panels are working optimally. 

However, if the opposite is true and you have low cash flow, home solar panels that produce a lot of energy could create a meaningful income. You can also take advantage of the heavy subsidies and tax breaks that come with adding solar panels to your home. 

Your lifestyle 

If you don’t have time for managing your panels, just lease them. Leasing frees you up from tracking the efficiency of your panels. The company you rent them from will do that, using sophisticated technology that might not be available to you if you buy.

Also, if you lease your panels, you don’t have to worry about carrying insurance on them or fixing and maintaining your panels. That, too, will be the responsibility of the provider.

Your family

If you want to install solar panels, the opinions of your spouse or partner and family are important. Solar panels are a big purchase and if your spouse doesn’t want the financial commitment of a purchase, then leasing solar panels may well be a suitable compromise. 

Your business

The benefits of buying a solar array big enough to power your business are nearly endless. If you are powering a big warehouse space, you will not just save hundreds of dollars a year, but potentially tens of thousands by installing solar, just in energy costs.

Then, there are also tax depreciation considerations. Depending on where your business is located, you can defray the cost of solar installation against your profit. Some districts will let you depreciate your solar panels over just one year, which is a huge boon to businesses that make a lot of money their first year.

Alternatively, you can depreciate your panels over five or ten years. That way, you spread out your tax advantage over a longer span of your business’s life. 

Wrapping up

As you can see, there are sound reasons for buying and leasing solar panels. Leasing solar panels has made solar energy available to more people than ever. And while buying is still the better long-term investment, leasing solar panels is a good alternative to buying for many people and in many circumstances. 

Ownership, however, delivers a tangible return on investment and energy resilience in the face of rising costs. Owning solar panels is the aspiration of anyone who want to live off grid and right now, has some great financial incentives. 

If you want solar panels, go for it! Whether you lease or buy, solar panels are a good overall idea. 

But with rising electricity costs – up 15.8% in the last year – many consumers have a dire need to reduce their consumption and energy costs. 

While these plans do provide free-of-charge electricity during nights and weekends, most plans come with a slew of additional charges and considerations that you need to evaluate carefully. This type of offer may not suit your lifestyle, or may not really save you money at all. 

As a consumer, it’s crucial to consider the benefits and pitfalls of subscribing to one of these free weekend and night electricity plans.

To help you reach a decision, our guide will show you exactly how to get free electricity on weekends, whether it’s the best idea for you, and key considerations for your switch. 

What does free weekend electricity really mean?

More and more electric providers are advertising free electricity deals. These plans allow customers to use power for free either all night, every night, or for the entire weekend. 

But why do providers offer these plans, and what does it really mean to sign a contract for free weekend electricity? 

According to the service providers, they offer these plans on nights and weekends to shift the energy load to off-peak times. This is because if too many people use too much energy during peak demand times it could create more demand than supply could provide.

One example of peak demand times is the winter, when cold temperatures are common and homes need to be heated during the day and night. As remote and hybrid work models have become more common, more workers are at home more often, and thus require electricity. 

Imbalancing the supply and demand of energy creates increased stress on our aging electricity grid, which could lead to brownouts and blackouts. In addition, the cost of electricity is relatively lower during weekends, so it is possible for providers to offer these kinds of deals to many customers. 

The idea of free electricity on the weekend originates from ‘time of use plans’, an electric rate schedule that adjusts the price of your electricity based on when you’re using it. 

With time of use plans, the cost of using electricity is higher during hours of high-energy usage to more accurately reflect the cost of electricity on the grid at that time. For example, energy usage is typically high at night, when residents return home from work and school. Consumption during these times will come with a higher price tag.

What’s important to consider with these free weekend and night plans is your lifestyle. If you work outside and home during the day, this plan might be a good fit for you. But if you often travel on the weekends, it might not make sense. There are a few other ways to save money with electricity – using a prepaid electricity plan, for example. 

However, before signing onto one of these promotional plans, you should have a good idea about your home’s average electricity consumption during weekdays and weekends.

For instance, free electricity on the weekend plan could start at 6 pm on Friday and stop at 11:59 pm on Sunday. Therefore, if your electricity consumption is high during weekends, you can make some considerable savings. 

How do free weekend electricity plans work?

So, how do these plans work? 

To know the approximate consumption of your home, energy providers use a smart meter. They take a reading every 15 minutes to understand your consumption, and offer specific plans in accordance with your usage.

To get a good idea of what your current usage rates are, you should review some of your old bills to calculate an average of your monthly energy usage. 

Because while it may sound too good to be true, the hours advertised as “free” on popular free nights and weekends plans are truly free. There are several important considerations when understanding the costs that come with these promotions, however.

How to get free weekend electricity: what to consider

Often, these plans are advertised in a way that looks misleading, and clients may not fully understand what they signed up for. 

To determine whether free nights and weekend offers will actually work best for your home, you can take a few steps to prepare and understand all the considerations before signing a contract. 

Estimate your bill 

First, you should get a good idea of what you might pay with this new plan in comparison to your old one. To estimate your bill, check your meter and old energy bills and make a few calculations. 

To evaluate your daily consumption, take the reading of your digital or smart electric meter during the day and night, so that you can ascertain how much energy you consume during the weekdays. 

If the amount of electricity consumed during weekdays is much less than what you utilize throughout the weekend, a free weekend electricity plan may be a great option for you.

Be sure to factor in the utility charges you’ll see on your new bill, as those won’t change by switching to a new plan or new energy plan.

It’s important to note that often, ‘free power’ plans can cost you even more than you typically pay. 

Why? Because suppliers charge high fixed-rates when you are paying for usage, in exchange for those free hours of electricity on weekends or nights. The rate you pay for your weekdays may turn out to be double the rate that you’d normally pay. 

Pay attention to the length of the contract

In most cases, electricity suppliers offering free weekend plans want their customers to enter into a long-term contract with them. The minimum time period for a free weekend plan is 12 months.

These contracts are binding, and you’ll be locked into the rates that have been agreed upon between you and the supplier. This means that even if your usage pattern changes, you have no other choice but to continue paying high electricity bills.

Therefore, if the length of the contract is too long; getting this plan would not be a wise decision.

Know your energy charges

It’s critical to know the exact electricity charges that you need to pay every month. Usually, suppliers charge nearly double the usual rates when offering plans that provide free electricity on nights and weekends. 

These free hours of electricity are truly free, and you won’t have to pay charges to your electricity company during free hours. 

However, there are often additional charges that electric suppliers do not mention.

These fees can add up quickly, especially when you’re already paying rates that are higher than normal. To make sure that these additional charges are worth it, make sure to compare your typical daily usage on the weekends versus the weekdays. 

Cancellation fees

Before you even sign up for a plan, think about what will happen if you need to leave or change that plan in the future. It’s important to know how much, and if, the supplier you plan to sign a contract with will charge you a cancellation fee. 

If you have entered into a long-term contract with a supplier and are unsatisfied with the rates you are paying, you can usually exit the contract, but must consider the cost of their cancellation fee. 

Compare the different plans

It can be very beneficial to compare the details and costs of free weekend and night plans that are offered by different providers. By comparing the plans of one company to another, you can get an idea which company is charging the most.

Most suppliers charge 35-50% higher rates on these free weekend plans. To ensure you’re getting the best deal, you can compare the plans of different companies and choose the one with the lowest rates and recurring charges. 

How to compare free energy plans

In order to compare different free weekend electricity plans, you can start with the websites of different suppliers in your area. Often, you can choose either one-year or two-year plans depending on your needs.

The electricity suppliers should clearly indicate the time when free power starts, and when it ends. To understand whether a given plan would work with your energy usage at home, look to your smart meter to provide all the necessary information. 

By researching some of the free electricity on weekends plans, you can outline the different details of these plans. It will make it easy for you to reach a decision that aligns with your energy needs. 

Make sure to weigh the pros and cons of this type of plan for your specific energy needs. Once you know exactly what type of plan suits your home best, you can get the maximum advantage out of it. 

Final thoughts on free weekend electricity

Free weekend electricity plans are often launched by energy suppliers to draw in new customers and incentivize the time of use payment structures. 

In addition, by offering free nights and weekends, energy providers encourage their consumers to utilize the most energy during off-peak hours. This structure helps the supplier to balance the supply and demand of energy. 

Oftentimes, consumers do not fully understand all the charges they are paying for, or do not realize that their supplier is charging rates that are higher than their original plan. 

Avoid falling into this predicament by weighing all of the considerations above and ensuring that a free weekend and night plan is best for your lifestyle and your home’s energy needs. 

Though the many details to keep in mind can be confusing, these plans are ultimately best when the amount of electricity consumed during weekdays is much less than what you utilize throughout the weekend. 

When you think about it, it’s amazing that a simple mixture of solid, liquid, and gaseous hydrocarbons could have had such remarkable utility in the advancement of mankind. 

But the continued use of petroleum is increasingly becoming a source of controversy. The history of petroleum is in part a bloody one and environmental concerns and the sustainability agenda have led to calls for a curtailment of its use.

It’s clear that petroleum is neither all good nor all bad, therefore, it is important to weigh both sides of the product. In this article, we share 20 important pros And cons of petroleum to help you evaluate the role of petroleum in the 21st century.

14 advantages of petroleum

Petroleum has been used by man for millennia and has played a role as an energy source in diverse civilizations and empires including the Sumatran, Babylonian, Persian, and Chinese empires. 

Oil is the fuel of the discoveries of organic chemistry, the invention of the Internal Combustion Engine (ICE), and the industrial revolution. Here are the need-to-know benefits of petroleum:

1. It’s an authoritative energy source that can be used by any vehicle

Petroleum maintains its high demand because key petroleum byproducts are used as fuels that are burnt to generate mechanical work. The most important example of this is the internal combustion engine, invented in the late 1800s. There are three types of ICE, spanning automobiles, shipping, trains, aviation, and even spacecraft all use petroleum byproducts as fuel:

• the spark ignition engine used by automobiles.
• the diesel engine used by trains and industrial machinery.
• the gas turbine jet engines use for aviation and spacecraft.

This makes petroleum essential for every level of human transport and exploration.

2. Stable and reliable energy resource

Petroleum naturally occurs as crude oil, a composite of solid, liquid, and gaseous hydrocarbons. This is an amazing substance that uses high-energy carbon-carbon bonds to store energy with enough stability for it to be extracted, refined, and transported safely. 

Petroleum can vary significantly in its density, viscosity, and boiling points, but it is consistent in its stability. The diverse alkanes, cycloalkanes, and hydrocarbons of petroleum are incredibly energy dense but strong enough to prevent excessive volatility.

3. Petroleum is a vital element in industrialization

During the 20th century, petroleum became the world’s most important energy source and a key driver of industrialization and economic growth. Countries that were early to exploit the benefits of petroleum have become more economically developed countries with advanced infrastructure and technology. 

Countries use petroleum byproducts in all parts of an advanced economy and provide the fuel needed for manufacturing and trade by road, air, and sea.

4. Petroleum is easily extracted and at a low cost

The modern industrial methods and technologies used to extract oil from below the earth’s surface are advanced and efficient. This short video from Total Energies explains how it’s done:

Because of increasing public awareness and regulatory scrutiny, the oil and gas industry has had to innovate, taking huge steps to simplify petroleum extraction and production so that it has less impact and cost.

This has resulted in the widespread distribution and availability of petroleum and its use as an affordable energy source.

5. Extraction of petroleum is safe

Oil exploration and the extraction and refining of petroleum are inherently risky. But safety standards and techniques have improved alongside innovation in the industry and the extraction of petroleum is now extremely safe.

Companies invest in the equipment and training that is necessary to protect workers while they undertake oil and gas well drilling. Industry and regulatory standards seek to minimize well-known risks of drilling for oil that include: 

• being struck by/ caught-In/ caught-between
• explosions and fires
• falls
• high-pressure lines and equipment
• machine hazards

This has helped to reduce the injury and fatality rate in this sector.

6. Transportation of petroleum is easy

Petroleum is extracted and transported in liquid form making it easy to use pipelines, tankers, and heavy goods vehicles to transport it from one point to another. The stability of raw oil means that it can be stored in barrels and move over long distances without exploding.

7. Storage and transportation does not lead to energy loss

Unlike most energy resources that lose their potential energy levels with time, petroleum retains its energy potential. The high-energy hydrocarbon bonds in petroleum are strong and remain intact until refining or deliberate combustion occurs.

This makes oil valuable as it can be transported miles away from the extraction location to the refinery factories without any alterations. It can also be stored long-term without deterioration

8. Petroleum possesses multiple usages

Petroleum is valuable because of the large number of high-utility by-products that can be produced from it. Although over 80% of crude oil is used for gasoline and fuel, petroleum is refined and processed to produce many everyday items. This smart video from the Oklahoma Energy Resources Board (OERB), explains how items produced from oil range from detergents to fertilizers:

9. Petroleum provides a strong economic background in some countries

The demand for petroleum generates massive revenues for the world’s major oil-producing countries. This becomes a major contributor to the GDP of these countries and has built their wealth. 

For example, petroleum accounts for about half of the GDP of Kuwait as well as 95% of the government income and export revenues. In many oil-producing countries, the improvement of living standards and infrastructure depends on how their oil performs on the global market.

10. Provision of job opportunities

The oil and gas industry is a 2.1 trillion dollar industry, which is growing as emerging economies industrialize and increase their demand for oil. 

Over 6 million people are employed across all stages of the production of petroleum from the exploration and drilling of crude oil (upstream), through transportation (midstream) to the sale and marketing of petroleum products (downstream).

11. Petroleum is used to create renewable energy resources

It’s the renewable industry’s best-kept secret! Wind turbines and solar panels rely on petrochemicals for their production and maintenance. 

Photovoltaic cells that capture solar energy require petroleum for their manufacturing. The photovoltaic panels need over a hundred liters of petroleum to produce the ethylene required for just one panel.

12. Petroleum is a high-density fuel 

Petroleum is exceptional as an energy source because its strong hydrocarbon bonds release so much energy when they are broken. 

Burning one kilogram of petroleum releases 41,868 kilojoules. This calorific value, known as the  kilograms of oil equivalent (kgoe) of crude oil means that we only need very small amounts of petroleum to create such huge amounts of energy!

13. Petroleum is used in medical therapies and treatments

Petroleum was used by the ancient Chinese as a medical solution for some skin problems. Currently, we use petroleum to manufacture petroleum jelly and other emollients and ointments, though many people are making the move toward natural skincare products. The organic chemistry that underpins modern petroleum applications has been used to develop a variety of pharmacological agents, including anesthetics.

14. Depleted oil fields are productive

Depleted oil and gas fields have unique geological properties that make them ideal for the long-term storage of gasses. For almost a century, these expired oil fields have been used to store large volumes of natural gas worldwide. Other applications for these locations include CO₂ injection and hydroelectricity generation using pumped, pressurized water.

Disadvantages of petroleum

It’s impossible to overlook the downsides when examining the pros and cons of petroleum Let’s look at the downsides of petroleum. The headline issues are obvious to most people but it is essential that we weigh them against the benefits of this resource so that individuals, societies, and nationals make the best decision about how to use petroleum. 

Some of the notable cons of petroleum include:

1. Environmental pollution

Environmental pollution from the by-products of petroleum combustion is probably the most well-known downside of petroleum use. Many scientists think the generation of greenhouse gasses from gasoline and diesel causes the proposed phenomenon of global warming.

Exhaust fumes from internal combustion engines are a noteworthy contributor to air pollution, causing acid rain and deteriorated air quality that causes health problems. 

2. Oil spillage

Oil has been responsible for major environmental disasters in the 20th century, such as the Exonn Valdez oil spill (1989) and the Deepwater Horizon spill in 2010. 

When petroleum finds its way into water bodies, it floats on top of the water, forming a film that blocks out light and hinders aeration. When you look at the persistent devastation an oil spill causes you can see that petroleum can devastate marine life:

3. Has toxic byproducts

Crude oil is refined to produce fuels and other byproducts. But the refinery process generates extremely noxious substances that cause significant, life-limiting health problems. Toxic byproducts of petroleum include: 

• Benzo(a)pyrene which can cause lung cancer.
• Acetaldehyde, a known carcinogen
• Benzene. Exposure in pregnancy and early childhood can cause leukemia.
• Formaldehyde (gas) is a known cause of leukemia and other cancers.
• Lead can cause neurological problems in children.  

4. It is a limited resource

In many societies, petroleum is used as though there is an inexhaustible supply. But it’s important to consider that it is non-renewable. This means once petroleum is extracted and consumed as a product, it can never be reused or replaced.

Oil is becoming scarce as a resource while global demand continues to increase. This drives up its cost and accelerates its consumption. According to Worldometer, if the current level of consumption is maintained there are only 47 years of petroleum supply left on the earth. 

A significant decrease in petroleum supply might cause nasty scenarios, including wars, famines, and economic collapse. Therefore, alternative energy sources need to supplement and reduce the over-reliance on petroleum.

5. Used as a tool for political gain

Modern history is filled with individuals and governments who have exploited petroleum for political gain. In particular, oil-rich, corruption, and violence can harm less economically developed countries as people fight over the oil, and revenues and withhold investment in the infrastructure and services required to raise living standards for the population. 

Some African countries lose as much as 40% of their oil revenues to corruption while the countries are impoverished. Alternatively wealthier nations may interfere with the government of oil-rich but poor countries to create dependence and exploit their resources. 

6. Regular maintenance of the infrastructure

The upstream, midstream and downstream aspects of oil require complex infrastructure. Significant financial, equipment and human resources are required to maintain oil drilling, refinery, storage, and transportation infrastructure.  Intensive monitoring of the machine is involved, and maintenance has to be performed to prevent any accidents or oil spillage.

Conclusion on pros and cons of petroleum

Right now, petroleum seems to be an inescapable part of modern life for the majority of countries in the world. Many of the pollution and environmental harms of petroleum are being addressed by improved technologies, that prevent or restore environmental damage. However, as it is a finite resource, we have to get used to the fact that we cannot take petroleum for granted. Investment in ways to make petroleum production and use cleaner and more efficient, alongside alternative energy sources appears to be the way forward.

Do you think the advantages of using petroleum outweigh its disadvantages? Share with us in our comments.

Electricity 101: the basics

Electricity is something that we use every day at home, work, in travel, and virtually every part of our lives. However, many people don’t really understand how this fundamental part of modern life works, or even what it is really.

Definition of electricity: What is electricity?

Electricity is a form of energy that’s made up by the flow of electrons.

All matter – from elemental metals like gold and iron to living things, including humans – is made up of atoms. Each atom has a nucleus made of positively-charged particles (protons) and neutral particles (neutrons), giving the nucleus a positive charge overall.

This nucleus is then surrounded by negatively-charged particles called electrons, which balance its positive charge. The nucleus and its electrons are held together by this balancing force.

If this force is disrupted for whatever reason, the atom can gain or lose an electron. This flow of electrons between atoms is electricity.

Different types of electricity

Electricity was discovered by humans hundreds of years ago, but we didn’t invent it. Electricity exists in nature in various forms – lightning, electric eels, and the impulse which drives the human heartbeat are all examples of electricity.

Electricity can be categorized in two main types:

• Static electricity – Generated when two or more objects rub together, generating friction.
• Current electricity – The flow of an electrical charge from one place to another.

Electricity as we commonly see it – coming out of power outlets to run our appliances and devices – is converting other forms of energy, whether fossil fuels or renewable sources like solar and wind.

Fundamental facts about electricity

Now we have that out of the way, let’s look at some key facts about electricity and how we use it.

1. Electricity can either be in the form of DC (direct current) or AC (alternating current). The major difference between DC and AC is the direction of the current flow: electrons in DC travel in the same direction while electrons in alternating current, change direction from time to time.

2. Direct current is generated from batteries and solar panels, but the power coming out of power outlets is AC. Simple devices like lamps and toasters run on AC power, but it needs to be converted to DC to power more complicated devices like computers and TVs.

3. The movement of electrons through a conductor generates heat. For example, the heating up of an electric stove is due to the current in the stove.

4. 22% of the US’ electricity comes from coal, according to the US Energy Information Administration (EIA). However, if we keep using this finite resource at our present rate, experts predict we’ll run out of known reserves by 2060. That’s why it’s so important to look at renewable power options like solar and wind.

5. Electricity travels almost as fast as the speed of light. Electricity moves at over 186 kilometers or 168,000 miles per second, around 90% the speed of light.

6. Our bodies are excellent conductors of electricity. That’s why you get a shock when you touch a live electric wire. This is because the human body is 60% water, itself a highly conductive material.

7. Just like gravity, electric fields have an inherent force. However, while gravity always attracts, an electric field, on the other hand, can either repulse or attract.

8. The electric charge that builds up in a fixed location is called static electricity. This is opposed to current electricity, an electric charge that moves from one place to the other. Static electricity forms on surfaces of some objects when we rub them against each other.

9. Current cannot travel indefinitely through power lines, as a power is lost as it is transmitted. Although this loss is minimal, it can add up over long distances, and so high-voltage transmission lines are typically no longer than 300 miles.

Historical facts about electricity

Before we go any further, it’s probably a good idea to examine the history of electricity and humankind’s relationship with it.

10. People have been aware of electrical force since ancient times. The first person known to observe electrical force was the Greek philosopher Thales of Miletus in around 600 BC. Thales noted that after rubbing a piece of amber with fur, it attracted feathers and pieces of straw, in what we now know to be static electricity.

11. Electricity is generally considered to have been discovered around 1600 AD by English scientist William Gilbert. Gilbert conducted various experiments on both magnetism and electricity and was also the one who coined the word electricity.

12. The electric battery was invented in 1799 by Alessandro Volta. He called his invention “the voltaic pile” which used chemical reactions to generate direct current (DC) electricity. The term volt also comes from Volta’s name.

13. Benjamin Franklin did not discover electricity, but he did invent the lightning rod in the 18^th century. In doing so, Franklin demonstrated that lightning is another form of electricity.

14. Francis Hauksbee was the first scientist to demonstrate static electricity at the beginning of the 18^th century. Hauksbee, who had been lab assistant to Isaac Newton, created an air pump device with a glass ball which produced a bright glow when rubbed, an early precursor to neon lighting.

15. We owe our modern electric generators, motors, and transformer technology to Micheal Faraday. The British scientist conducted research on electromagnetic induction, where he observed how an electrical current was produced when he passed a magnet through a copper wire. When he published his research, people began to realize the potential of electricity.

16. French inventor Hippolyte Pixii first observed alternating current in 1832. Pixii discovered that he could reverse the flow of electricity with a spinning magnet with poles that passed over an iron core, developing the first dynamo electrical generator.

17. Thomas Edison didn’t invent the lightbulb, but he brought the technology forward so it could be widely used. Edison developed the first electric-powered incandescent lightbulb in 1879 that could easily be used to light houses and other buildings. However, it took some time until the technology replaced candles and gas lamps on a wide scale.

18. The USA’s first central power plant was established in 1882 in Manhattan. The plant supplied electricity to nearby homes that used Edison’s incandescent light bulbs. It was later followed by other power plants across the country, the beginning of the nation’s power grid.

19. US households didn’t have widespread access to electricity until the 1930s. It wasn’t until President Roosevelt set up the Rural Electric Administration in 1935 that most American families had access to electricity, leading to the rise of household electrical appliances.

Home electricity facts

Let’s move on to some interesting facts about how electricity lights, heats, and generally powers our homes.

20. Heating and cooling make up the greatest category of home energy use in the US. Heating and cooling represents 47.7% of the energy we use in our home, followed by appliances, electronics, and lighting at 34.6%.

21. LED light bulbs consume around 80% less energy than their incandescent counterparts. Although more expensive, this type of light bulb is much more efficient and longer-lasting, so you’ll save money in the long run.

22. A significant amount of total electricity usage in homes comes from idle devices. Many appliances continue to draw power even when they appear to be off. For example, even if you never turn your TV on, it will draw around 227 kilowatt-hours a year when plugged in, more than the average power use per capita in some developing countries.

23. In a light bulb, only around 10% of energy goes to generate light. The rest of the energy is lost as heat.

24. Running one 100-watt light bulb 24/7, every day year would use around 876kWh of energy. Generating this electricity means burning 712 pounds of coal, or nearly 9 days of solar energy.

Fun facts about electricity

25. Lightning is the release of an electric charge into the atmosphere. A lightning strike travels at a speed of around 220,000 mph when traveling down from a cloud, but can reach speeds of up to 220,000,000 mph when heading skywards again, which is around one third of the speed of light.

26. Lightning can reach temperatures of nearly 54,000 °F. A single bolt of lightning lasts for less than a second, can measure as much as 3,000,000 volts and has enough power to light up around 100 lamps for the whole day.

27. Electric eels can generate an electric shock of around 500 volts, enough to severely injure a human being. The underwater animals have evolved to produce this charge for both hunting or self-defense.

28. Birds don’t get electrocuted when they sit on electric power lines because a bird on a wire doesn’t complete a circuit. If the bird touches a second wire while still sitting on the first one, it will complete a circuit and be electrocuted.

29. Even our bodies contain electricity: some organs, like the heart, beat because of electricity. The muscles of the heart contract due to an electrical impulse, which you can see on an ECG machine in the form of a line with regular spikes.

30. A gecko can climb a wall thanks to the difference between the charges of the surface of its feet and the wall. This difference enables it to “stick” to the wall without sliding.

We hope you enjoyed these facts about electricity

Electricity is an integral part of nature and has probably been part of the universe since the dawn of time. Nowadays, we use it on a daily, if not hourly basis, to live our modern lives.

Although we continue to rely heavily on non-renewable sources of energy like coal and natural gas to generate electricity, it’s essential to move towards sustainable options. Solar, wind, and other renewable sources of energy are not only virtually unlimited, but they don’t come with the greenhouse gas emissions and other forms of pollution associated with fossil fuels.

Want to learn more about harnessing renewable energy? Learn more in our guides to home solar panels and wind turbines.