Renewable energy leads to cost savings
Many renewable energy technologies utilize free fuel, such as wind, water, geothermal and solar energy. Therefore the costs of these renewable energy systems are largely upfront, and therefore stable. Conventional power supply's main costs are in the fuels, in sourcing, protecting, mining, processing, and delivery. The costs of conventional forms of energy supply are largely associated with fuel costs, which consist of a large portion of their price - in addition making them more expensive from a life-cycle perspective. Fuel prices are subject to fluctuation: making conventional sources risky from a cost perspective.
Conventional sources of energy, such as coal and nuclear have hidden costs. These externalities range from the degradation of the environment associated with mining and processing of fuels, with impacts on water and soil quality, and human health. Further damage and costs comes with combustion for fossil fuels, in terms of air quality and climate impacts, and with waste disposal and water quality with nuclear power generation. The prices of conventional energy does not reflect these costs.
Unfortunately, the high up-front costs of renewable energy systems can be discouraging for many. Many of these costs are in addition to the technologies themselves, and these incidental costs can be found in permitting processes, grid connection, renovations (upgrading roof at same time as install solar system), taxes, audits, applications, etc. Local governments can play an active role in reducing many of these incidental costs, which in some cases are not necessary. See policies here.
