Having “Price Security” means controlling what you pay for your electricity. They amount you spend on electricity depends a lot on how much electricity you use. It also depends on the price you pay for every kilowatt-hour (kWh). The price of electricity is linked directly to the price of the fuels burned to produce electricity. If you depend 100% on the electric utility for your electricity needs, you have no price security. Your electricity bill will increase as the price per kWh increases.
Every month you receive a bill in the mail from your electric utility. The invoice tells you how many kilowatt-hours of electricity you consumed in the last month. It also tells you how much money you owe for using that electricity.
Between these two numbers are A LOT of different charges. Some are associated with the electricity you use. Some are for being connected to the electric grid. These values are important because they can, and will, go up over time. There is very little price security in fossil fuels. As they become more expensive, electricity rates in Rhode Island will rise.
In our payback analyses, we assume that the price of electricity will increase by 3.0% per year. Most energy experts agree that this is a conservative estimate; electricity rates will increase at a much faster rate. In the past 10 years, prices have gone up about 5% per year.
You can control how much electricity you buy from the electric company. Generating solar electricity on your property in Rhode Island with solar panels will do this. In addition, the price you pay for Rhode Island solar electricity is much lower than utility electricity. Producing your electricity via solar power with free fuel from the sun will protect you and give you price security. You will have little concern for the ever-increasing cost of utility generated electricity.