In part one of this two-part blog series, we went over some basics on what’s known as utility inflation and its impact on electricity prices. Said prices have been consistently rising across the board in recent years based on several factors, some of which we already went over and some of which we’ll touch on here – but those who have installed solar panels and transitioned to a reliance on solar power can escape this cycle.
At Intermountain Wind & Solar, we’re here to help. We perform a variety of both commercial and residential solar panel installations and related services, including use of the Tesla Powerwall battery backup that allows you to remove your reliance on your local power grid for your energy. Today’s part two of our series will look at a couple additional factors that tend to play a role in electrical pricing changes, plus how solar power protects you from the risks of these costs.
Generally speaking, electricity prices from major utilities are highest for residential and commercial consumers. This is because it costs the most to distribute electricity to them, as there are so many locations power has to be sent to.
Industrial consumers, on the other hand, are easier to supply for. They use more electricity and receive it at higher voltages, all to central locations. For this reason, prices are closer to wholesale for industrial centers, while they tend to be higher for consumers like you.
In addition, where you live plays a role in your electrical costs for a normal utility setup. Prices can range incredibly widely here, from as low as the 7.5-cent per kilowatt range all the way up to nearly 30 cents per kilowatt – though this latter range is rare, and mostly for states like Hawaii where electrical generation is especially unique.
As you’ve seen to this point, there are numerous factors that may impact your electrical costs – and several you have basically no control over, too. Luckily, though, solar power presents a fantastic alternative that helps you get out of this cycle. Not only does going solar eliminate your reliance on utility electrical needs, it will also make your bill more predictable each month, a huge asset for many home or building owners.
As an example, we’ll assume the previous rate of about a 3% annual rise to grid electrical costs holds over the next several years. We’ll also use the average of $1,411 annual cost for the typical US home for their electricity needs. This means that if you buy a solar panel system to cover all your electrical needs, you will have $1,411 saved by the end of the year – and the following year, that amount will be $1,452, and so on as it rises each year. Now, you will have to factor in up-front costs for obtaining the solar panel system of course – but over the course of a 30-year period, you can save upward of $30,000 on your electrical costs, easily enough to recoup your initial costs many times over.
For more on how solar power helps you escape the cycle of utility inflation, or to learn about any of our solar panel installation, repair or related services, speak to the staff at Intermountain Wind & Solar today.
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