Solar offers a fixed-cost hedge against future energy cost increases. It makes your future energy costs more predictable, and lower.
Solar energy systems have high up-front cost, but once installed, the fuel (the sun) is free forever. Due to the thirty-year system life and very low maintenance costs, once the system is purchased, the cost of energy is fixed at a known quantity. This compares with conventional electric energy costs, which have been rising at around 5% per year and may be expected to rise even faster in the future. Conventional energy prices, with their dependence on fossil fuels (coal, gas, and oil) are subject to the volatility of those markets, as well as any future costs of environmental remediation or carbon emissions penalties.
Several states have tiered energy prices in which the price per kWh of electrical energy consumption is lowest at night (when demand is lowest) and highest during the afternoon (when demand is highest). Because solar systems produce maximum energy during midday and afternoon hours, solar electric systems offset the highest-priced energy in a tiered pricing market. In Ohio, a solar electric system is a great bet on future adoption of tiered pricing in the Ohio markets. Install solar now, and if tiered pricing comes in, you’re equipped to offset the highest-cost energy and thereby save the most money on your electric bill.