Your Hedge Against Utility Inflation: Your investment in solar energy will protect you from utility rate inflation

Utility Rate Inflation 980x735 1

Levelized Energy Cost (LEC) analysis provides us with a “hurdle rate” (the levelized energy cost) which can be compared to the expected change in utility rates (by way of utility rate inflation). LEC is the average lifetime cost of energy produced by a particular system. We can compare the LEC to the current utility rate and its expected change in price as time goes on. In this manner, one can judge the investment as a “better bet” than utility rates to contain energy costs. 


Represented below is the average cost of utility energy on Martha’s Vineyard vs. the cost of energy produced by a solar system over time. 



As you can see, electricity prices are only inflating and getting more costly to the utility consumer. Getting a solar energy system is a great way to exclude yourself from this future inflation. Solar systems have a life expectancy of 25-30-years, but most systems have been known to last for 35-40+ years. The technology is only getting better and the solar modules/panels are getting more efficient and stronger with less degradation over time. 


Imagine the cost of electricity in 30+ years and how much money it will save you during the course of your solar systems lifespan! 


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top