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Solar energy doesn’t have any tiered prices. Utility businesses sell power at reasonable rates based on the quantity of power you use. The baseline rate is your cheapest rate charged; since you use more power the rate billed increases. The unit of power you’re billed for is your kilowatt-hour (KWH). By charging different electric rates for use, the utility company is trying to benefit conservation by charging far more if you use greater levels of electricity; just how good of them.

Most utilities have 3 to 5 speed tiers; the maximum grade is virtually always twice the price or more of their lowest grade. A solar energy system will reduce your electric bill considerably because it’s going to initially target the maximum speed tiers. This works particularly well because the price of electricity in the first two tiers is mandated by legislation and all users get the exact same pace, but the higher tiers are unregulated and increase dramatically and will just continue to grow in the mercy of their utility companies. Nationally electricity prices average a 5 percent increase yearly, in California it’s closer to 7 percent, and the tendency is simply picking up speed as fuel costs continue being unsteady, provides decrease, equipment becomes outdated and naturally inflation. Utilities are discovering it’s more costly to create power. On the other hand, the market for power is increasing; requirement continues to grow despite new improvements in energy-efficient appliances.