Solar panels and battery storage could see a new wave of adoption if the conflict between the United States and Iran continues, according to a Bloomberg report from early March.
Bloomberg estimated that in severe scenarios where fuel prices spike, crude oil could rise to about $108 per barrel. Higher oil prices tend to ripple through the broader economy, driving up transportation, heating, electricity, and food costs while also adding to inflation.
What makes this moment different from past oil shocks is that consumers and countries now have another option.
In previous decades, nations hit by fossil fuel disruptions often had only two difficult choices: pay more for imported energy or use less of it. Now, Bloomberg noted, the falling cost of solar panels and batteries means households, businesses, and governments can increasingly swap volatile fuel purchases for locally generated electricity and stored power.
That could be especially important for consumers looking to protect themselves from price swings. Homeowners and governments around the globe are already taking advantage of this cheap and clean form of energy to protect their power grids.
To see how solar could reshape your energy bills and protect you from skyrocketing rates, connect with the solar experts at EnergySage to receive quick installation estimates.
On a larger scale, more solar and storage can help utilities reduce their exposure to oil and gas market shocks.
Antoine Vagneur-Jones, head of trade and supply chains at BloombergNEF, explained in the report that when a technology becomes accessible and cost competitive, a "tipping point" on adoption emerges.
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Plus, when other options become more expensive, it could push consumers to adopt that technology even sooner.
For example, Bloomberg noted, when natural gas prices climbed following Russia's attack on Ukraine in 2022, Europe saw a rapid boom in solar and battery adoption.
It appears a similar trend is taking place today, with U.K. officials recently announcing rules that require builders to install solar panels on all new homes, per CNBC.
BNEF analysts also wrote in a different report that the inventory of clean technology is ample, so a further disruption of fuel supplies could turn consumers toward other options.
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"It could push customers toward technologies like solar and batteries," they explained, according to the Los Angeles Times.
If you're already feeling the pressure of rising costs, a solar panel upgrade might be worth consideration. Luckily, EnergySage has the free tools to help you get started.
Plus, homeowners who work with EnergySage experts can save up to $10,000 on the cost of solar installation and purchasing.
Even better, EnergySage also offers a helpful mapping tool to show you the average cost of solar in your area as well as details on incentives available for clean energy upgrades. It can help you lock in the best price possible.
Meanwhile, if you're looking to make your home energy more secure and dodge peak electricity rates, think about pairing solar panels with a home battery. EnergySage can help you here, too, with its resources for home energy storage solutions.
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