Rising Electricity Rates

The high cost of electricity

It’s increasingly expensive for utility companies to generate power. The cost of fuel is raising the utilities’ operational costs, and demand on the grid is growing rapidly, despite new advances in energy-efficient appliances. Additionally, infrastructure investment costs (what it takes to maintain the grid), are forecasted to be around $14 billion dollars a year in the near future. All of these associated costs get passed on to you the consumer.

Electricity prices rise 7% a year in California

California's electricity rates go up every year and are among the priciest in the nation. The good news is that going solar is a solution to help control these runaway costs.

The Southwest's energy future

Homeowners in Arizona pay 17% more for electricity today than they did in 2002. Phoenix residents have been hit particularly hard with rates up to 14 cents per kWh in 2010. Electricity rates in Arizona and Colorado have been relatively low compared to other states', but that’s changing in Arizona due to the price volatility of natural gas (which powers almost a third of the state’s grid). Electricity prices in Arizona and Colorado are likely to rise even more when the United States passes a climate bill designed to discourage the burning of coal and natural gas.

With 300 days of sunshine a year, states like Arizona and Colorado are in a great position to phase out fossil fuel use before it becomes prohibitively expensive. In fact, experts believe the Southwest will become the Persian Gulf of solar in the years ahead.

Will solar help lower electricity bills?

Yes! Becoming your own power source by installing solar panels is a giant step towards gaining energy independence and freedom from rising electricity rates. You can lower energy costs and reduce your bills immediately when you install solar. When electricity rates in your state climb, you’ll be largely protected because you will only be buying a small amount of electricity from the utility.