Cheaper renewables may not translate into lower bills yet, experts say

HOUSTON, Texas (KTRK) -- Two new reports from the United Nations suggest the world has crossed a positive tipping point when it comes to renewable energy.

Solar and wind power are now cheaper than fossil fuels, which is promising news for the planet. However, Houstonians shouldn't expect to see big savings on their energy bills just yet.

According to the latest data from the International Renewable Energy Agency (IRENA), solar power is now 41% less expensive than coal, oil, or natural gas. Wind energy is 53% cheaper.

A separate UN report shows that 93% of all new electricity capacity added to the global grid in the past year came from renewables.

The growth in demand and better technology are making renewables cheaper than fossil fuels, but you won't necessarily notice a big difference on your monthly bill yet.

University of Houston energy expert Dr. Harish Krishnamoorthy said that the infrastructure needed to support renewable energy is costly in the short term.

"There's always this cost of infrastructure associated with any new projects," Krishnamoorthy said. "Texas is kind of exploding in net demand. On top of that, with renewables, there comes this flexibility. You don't know when it will be a cloudy day and solar energy reduces. That requires some energy storage. Texas is investing a lot in that. All this will cost some money. In the near future, it is possible electricity prices will go up a little bit. We have to look at it as a long-term investment. After a few years, then the overall cost should reduce."

Texas continues to lead the way nationally when it comes to renewable energy. According to the Texas Comptroller, the state ranks first in wind energy production. Texas is second in solar production, trailing only California.

Krishnamoorthy said more support is needed from Washington to scale up renewables quickly.

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