Utility Rate Escalation
Utility rate escalation is the increase in electricity prices over time, often modeled as an annual percentage in solar savings calculations.
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What does Utility Rate Escalation mean?
Utility rate escalation is the increase in electricity prices over time, often modeled as an annual percentage in solar savings calculations.
Why does utility rate escalation affect solar ROI?
When electricity prices rise, every kilowatt-hour of avoided grid consumption becomes more valuable. That also makes clipped energy and conversion losses more expensive over a system’s lifetime.
How it relates to Tigo
Tigo’s Microinverter Tax analysis treats rising utility rates as one of the trends that increases the cost of wasted solar energy.
Related glossary terms
- Time-of-Use Rates
- Clipping Tax
- Conversion Tax
- Solar Export Value