Energy costs have been
steadily increasing throughout the nation over the past 50
years...
Colorado is increasing
much faster than the national average:
In January 2007, the price of electricity
increased to about $0.10 per kWh which for the average
Colorado household equals about $60 per month.
In January 2008, Xcel
Energy rose rates once again - this time by nearly
10% to $0.109 per kWh.
Now in June 2008, Xcel announced it's 3rd
major rate increase in 18 months by raising rates
over 10% once again. The average residential electricity rate
is now around $0.12 per kWh. That's an astounding
20% increase in less than 2 years!
The $0.39 per kWh projection in 2030 (chart
below) is based off a very conservative estimate of a 5.5%
per annum increase. Colorado rates have been increasing
nearly 9% per year in this decade.
By the end of the warranted life of your new
Solar Energy System, monthly electricity rates for an average
Colorado home will be close to $250 per month - a
390% increase from 2007!
[Data Source: Xcel, DoE, EIA] *Based on continued
5.5% annual increase in Colorado Electricity Costs]
[Chart Source: Astralux Power Systems - All Rights Reserved]
If these projections
materialize, the average cost of electricity in the 25th anniversary
of your solar energy system will have more than doubled.
Here are some
interesting (and indeed troubling) facts about Electricity
Rates:
- In this decade,
much of the nation has seen drastically increasing prices
in everything from petroleum
to coal
and electricity.
- Natural gas rates have risen even faster,
and Xcel Energy is moving towards creating most of Colorado's
electricity from Natural Gas - which will greatly increase
electricity costs over the next few decades.
- In Colorado, we have seen a 63%
increase in electricity costs since 2002.
- Since 2002, the
annual increase in Colorado has been around 9%,
far higher than the national average!
- Given the rapid diminishing of natural
resources and increase in political turbulence in the procurement
of endangered resources, another energy crises akin
to the one that plagued our nation in the early 1980's is
possible.
All indications indicate a continuing
trend of these upward increases, and the potential
for Colorado to rapidly catch up to electricity prices
of major cities/states (California, New York, New Jersey,
etc.).
Meanwhile, you
will secured the current costs of electricity the day you
purchase a system. This can drastically decrease the
payback period
for your
system,
and increase the ROI - especially in the later years of
your system.
By Going
Solar Today, you can hedge
against these rising energy costs - one of the Many
Benefits of
using Solar Energy.
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