EconomicsUp to date · Jan 15, 2026
Energy Cost Escalation
The historical and projected rate at which electricity prices increase over time. US electricity prices have risen about 2-3% annually over the past 20 years, though this varies by state.
Why It Matters
Solar locks in your electricity cost for 25+ years while utility rates keep climbing. A 2.5% annual escalation means today $0.16/kWh rate becomes $0.26/kWh in 20 years.
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Related Terms
Energy Escalation Rate
The annual percentage increase in electricity prices over time. Historically 2-4% nationally, but varying significantly by state and utility.
Total Cost of Ownership
The complete cost of a solar system over its lifetime, including purchase price, financing costs, maintenance, inverter replacement, monitoring fees, and insurance — minus all incentives and energy savings.