Electricity is a necessity that we just cannot live without. The difference is what method we choose to power our home, renewable energy or fossil fuel generated. Fossil fuel generated electricity involves additional costs compared to solar power. In general, we believe our electricity bill to be the cost of what we have used per watt, but if we take a look at what goes behind generating energy, we will find that the our electricity bill is actually the combination of some unique costs. Costs that go into this bill are labor to mine for coal or drill for oil, cost of labor and materials to build energy-generating plants, and cost of carriage of coal and oil to the plants, yet very few of us are aware of these charges that are found in our electricity bills.

External Electricity Bill Charges

An electricity bill includes some external expenses for producing electricity from fossil fuel.  This includes national security costs, such as protecting foreign sources of oil, diverse types of taxes for safeguarding protective schemes for human health glitches caused by air pollution from the burning of coal and oil, damage to land from coal mining and to miners from black lung disease, environmental issues caused by global warming, natural disaster like acid rain, and water pollution. Since such costs are indirect and hard-to-control, they have continued to be present as external, but allied to the energy pricing system. Often these are mentioned as an external charge in electricity bills.

National Security Impacts of Fossil Fuel Use

The nation’s fossil fuel dependence means that, to guarantee our energy supply, we may be forced to protect foreign sources of oil. Not only are billions of dollars spent in protecting the oil, but workforce is required to do the task and the entire infrastructure has to be maintained.

It can be safely assumed that use of renewable energy derived from solar power is free from all sorts of hidden costs. Solar energy is generated from direct sunlight and does not create pollution, hence protective measurement costs are not found integrated in solar energy.  Going solar is a smart solution to trim your electricity bill and avoid electricity charges.