What if electricity prices rise?
Rising rates are the main reason solar often pays off faster than the simple estimate.
A solar system costs the same no matter what happens to electricity prices. The power it makes, though, becomes more valuable every time your utility raises its rate. So the faster rates climb, the sooner your system pays for itself.
Over the last 10 years, the average US home rate rose about 3.1% per year, from 13.4¢ to 18.3¢ per kWh (EIA). Nobody knows the future, so we show a few scenarios.
Example: an average US home
6 kW system, US average rate of 19.3¢/kWh, about 8,405 kWh produced per year.
| Price rise per year | Payback | Savings over 25 years |
|---|---|---|
| 0% | 11.1 yrs | $40,459 |
| 3% | 9.7 yrs | $59,005 |
| 5% | 9.1 yrs | $77,240 |
| 8% | 8.3 yrs | $118,312 |
Doing nothing means paying these rising rates yourself. 25-year savings cap yearly growth at 5%.
Try it for your state
Every state page has a "What if electricity prices rise?" tool with your local rate and sun.
Ready to see real quotes?
Get personalized quotes from local installers and compare prices.
Get free quotesNo obligation. We don't sell solar — we help you compare.
Estimates only. Actual results depend on your home, installer and local rules.