EconomicsUp to date · Jan 15, 2026
Energy Escalation Rate
The annual percentage increase in electricity prices over time. Historically 2-4% nationally, but varying significantly by state and utility.
Why It Matters
Higher escalation rates make solar more valuable over time because your locked-in solar cost stays flat while grid prices rise. A 3% escalation rate doubles electricity costs in 24 years.
Related Tools
Related Terms
Net Present Value (NPV)
The total value today of all future solar savings minus the initial investment, discounted at a chosen rate. A positive NPV means the investment is financially worthwhile.
Levelized Cost of Energy (LCOE)
The total cost of generating electricity from a system divided by its lifetime energy production. Used to compare energy sources.