Electricity Price Inflation

by Tom Charlesworth on December 9, 2011

One of the key reasons for installing a solar panel system is to insure ones self against the current electricity price inflation rates. However, not many of us are aware of just how severe these rates have been and how much worse they are going get. This article reveals the inflation of electricity prices over the last 10 years and how these extrapolate to reveal future rates.

How has the Cost per Unit of Electricity changed over the last 10 years?

The graph below clearly displays how the average cost of electricity to the consumer has altered over the last 10 years:

Electricity Price Inflation Chart

The graph clearly reveals a rather dramatic increase in the cost of electricity over recent years. Probably the most alarming aspect of this graph is that the rate at which energy prices are building is also increasing. Between 2005 and 2009 the amount charged per unit almost doubled from 7 pence/kWh to 13 pence/kWh, which equates to an increase of approximately 17% per annum.

If these rates of electricity price inflation are to continue (which is likely as resources diminish), the cost per unit will be around 27p by 2015 and 60p come 2020.

How does this equate to the total change in the size of my bill?:

Energy bill for 2011:
- Cost per unit: 14p
- Number of units consumed: 10,714
- Final total: £1,500

Estimated Energy bill for 2015:
- Cost per unit: 27p
- Number of units consumed: 10,714
- Final total: £2,893

Estimated Energy bill for 2020:
- Cost per unit: 60p
- Number of units consumed: 10,714
- Final total: £6,428

Therefore, if you wish to insure yourself against these rapid and frankly scary inflation figures, why not contact Solar Selections today to discuss how Solar PV can help. We offer a free and impartial service, where by you can assess several solar providers quickly, allowing you to make an informed decision upon which solution and provider is right for you.

Have more questions about Solar Power? Contact us.

For further impartial information on solar panels and inverters, please feel free to get in touch with Solar Selections (sales@solarselections.co.uk).

In addition, if you are looking for a free and informative solar quote comparison of up to 7 PV installers, simply fill out the “Request a Solar Quote Comparison” form to the right. Once completed you will instantly be emailed a quote comparison and your personal Solar Broker will be in touch to offer help if required.

Written by Tom Charlesworth

charlesworth@solarselections.co.uk

Phone: 020 7205 2267

© 2011 Solar Selections Pty Ltd

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