Electricity Rate Escalator
Please enter the electricity cost escalator rate.
This is an estimate of the inflation at which the electricity rate will increase. The Energy Information Administration provides historical electricity price data broken down by state and end user type. This historical data can be used to compute a benchmark for the expected future inflation in energy prices. Many solar contractors use an escalator of 2-4% in their modeling. It is recommended to error on the side of a lower escalation rate to ensure the model is providing a “worst case scenario” and not overpromising financial cost and payback.