EspañolHow Much We Will be Paying for Electricity in 20 Years?
Inflation. Yes, we need to figure this out in order to calculate how much we will be paying for electricity in 20 years.
As for the definition, we have this: Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency.
In some countries inflation is dramatic, for example, Argentina’s inflation rate for this year could be up to 50%. Not to mention Venezuela with a whopping 650% reported in January 2018. Some countries are negative, like Saudi Arabia, in January 2018 reported -0.2% (Definition: This entry furnishes the annual percent change in consumer prices compared with the previous year’s consumer prices.).
Inflation in 20 years
Fortunately, in the US, things are a bit different and less dramatic.
Inflation is just below 3%, however, we see an increment in gas prices. Regarding gas prices, remember that electricity rates are affected by Natural Gas prices.
Natural gas prices have increased in the last year. Weather also has a lot to do with this, in the winter of 2014 we experienced a Polar Vortex which made the demand for natural gas greater than ever, with this, an outstanding increase in natural gas prices. See image.
Natural Gas Prices since 1997
So, what will happen in 20 years regarding the electricity rates?
Experts say that within the next 20 years, some years the peak increase in electricity prices will be around 8%, and the lowest increase will be about 3%. We can simplify this with an average increase of 5%.
20 CENTS PER KWH is How Much We Will be Paying for Electricity in 20 Years.
Today’s average residential electricity rates are around 10 cents per kWh (energy delivery charge included). With this said, in 20 years we will be paying about 20 cents per kWh. If my calculation is correct, 10 cents X 0.05 (5%) X 20 (years) = 20.
Solution. Go Solar.
We found that we need to stay off the energy grid as much as possible in order to pay less electricity. The only way to do this is to go solar. With solar panels, you will be your own electricity company and you will be off the grid as much as possible.
Drive your money to a different cause. When you install your solar panel system, less will be money you send to the electricity company and you will be sending your money towards your solar panel system. Reduce your electricity bill by 85% or more and use that saved money for your home investment, solar panels.
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We will find the best way to make your home more efficient than ever.
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