I always used 3.78% as the energy inflation rate because that's a number I can get from the Energy Information Agency. It's a conservative number that I used for my solar financial assessments. But I always knew that with Texas having its own grid and market, this number never really depicted our future. There had to be a more local number.
It wasn't until a customer asked last month, "hey, what's the Texas inflation for electricity" that I gave another push to get more accurate data. Here is an article from the Dallas News from last month: it assesses a 9% increase based on data from the Association of Electric Companies of Texas.
Then my friend Deborah Dubay posts this to the Texas Renewable Energy Industries Association LinkedIn discussion board.
The Texas Public Utilities Commission is pondering changing the Texas grid from a market-driven model to a capacity market. In essence, it may pay plants to generate power even if it's not needed at that moment. Texas' industry leaders are afraid of the resulting price increases.
They're right to be afraid. But even in the market model we live under now, the prices jumped 9% last year (going from 9 cents to 10 cents may not seem like a big jump, but it is when you look at the percentage increase). It looks even bigger when $300 goes to $330.
I'm convinced more is coming no matter what direction this Texas energy market goes. It's why I moved into the Texas solar industry because I want you to have access to solar energy that is going to cost the same from now until...well, forever.
Free solar from the sun's photons - your only access fee is a solar PV system that you'll be shocked to see is as inexpensive as it is. Let us give you an estimate. It might be one of the best long term investments you'll ever make.