How Renewable Energy Works in Texas

Texas Renewable Energy, including Wind and Solar

It seems that every year now, there’s an emergency in Texas that challenges even the strongest of the state’s energy grids. Whether it’s a freak blizzard and ice storm or an early heat wave, power (and people) end up being the victim. That being said, when an early summer heat wave hit Texas in 2022, the power grids were surprisingly well-equipped — and we partially have renewable energy to thank for that. Wind and solar generated about 40 percent of the electricity needed to weather the temperature. Since it's renewable energy, it did so without adding any greenhouse gasses to the atmosphere.

Benefits of Renewable Energy

Aside from the elimination of greenhouse gasses, renewable energy comes with some other great perks. Your electricity is generally more reliable, the cost is more stable than traditional energy sources, it can’t really run out — unless we don’t have weather anymore, in which case there’s a much larger problem — and the health benefits beat out everything that causes pollution. Plus, increasing renewable energy sources creates more jobs. Somebody’s got to maintain the wind turbines and sell those solar panels, right?

In most cities in Texas, electricity is a deregulated market. That means that instead of being locked into one provider, you have the power to choose who you’d like to use. If you want to get electricity from renewable sources, you can! As of 2021, Texas created the most wind-generated electricity in the entire country. The choice is all yours.

Current Status of Non-Renewable Sources

Right now, Texas leads the nation in wind-generated energy, but the state also uses a handful of other types. The problem we face is infrastructure. Power lines are overloaded, and there are not enough batteries to store the electricity coming from the wind and the sun. The state needs more transmission lines to make renewable energy a fully feasible option for electricity. We are close though. More infrastructure is on deck to be built, and some of it’s already in progress. So for now — and in the future — prepare to see more of these types of renewable energy.

Wind Energy

Year after year, Texas is the country’s largest producer of wind-generated energy. The state produces more than a quarter of the wind-generated energy for the entire United States. The wind farms are all out in the western and northern parts of the state, in an area called the Competitive Renewable Energy Zones (CREZ). Texas currently has more than 35,000 megawatts of wind capacity. Wind energy producers receive tax subsidies from the federal government — for now — which keeps the price relatively reasonable compared to other renewable energy resources.

Solar Energy

Right now, solar energy is the least used power source in Texas. It accounts for less than three percent of electricity generation. However, that won’t be the case for long. Texas is planning to add an enormous amount of solar panels throughout the Lone Star State over the next five years. We can expect 4,266 megawatts of solar power to hit the market, which would make Texas the third fastest-growing solar energy producer — behind California and Florida. The price is expected to stay somewhat low as well (at least as compared to other renewable energy sources), thanks to tax credits handed out to energy producers.

Other Alternative Energy

Texas’s renewable electricity game only comes from a few other sources: biofuel, hydroelectric, and geothermal. They’re all an extremely small segment of energy generation in the state. Biofuel, for example, runs out of only four plants across northern Texas. Hydroelectric is practically a lost cause thanks to the flat terrain in the state, which pretty much stops any dams from becoming a reality. Geothermal is just as elusive an energy source; some schools and homes have used it in the past, but nothing exists that would approach a large enough scale to power the state.

The Future of Renewable Energy in Texas

Texas utility regulators recently approved an overhaul plan for the Electric Reliability Council of Texas, or ERCOT. ERCOT manages the state’s power market. The overhaul will allow for private investment in new power plants. Those power plants could be renewable and non-renewable plants alike — so we may see a boost in renewable energy sources and infrastructure. The overhaul is also an attempt to make the power grid more reliable, so Texans won’t be subject to any more power failures or blackouts during emergencies.

Interested in using renewable energy in your home? OnPoint gives you the power to use it. Check out our plan, including renewable option(s), that could be exactly what you’re looking for for your family or company.

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