Solar leasing promoters have long claimed that electricity costs will keep rising, but we haven’t see this happening – yet. Actually, almost all of the standard generation sources are benefiting from lower costs – natural gas is low, coal is low, and nuclear is… well it’s not dramatically more expensive than it has been. There is no doubt in my mind, however, that prices are going to go up.
So why do I say that the prices are going to go up? Three reasons – and they have nothing to do with generation: deferred maintenance, retrofits, and liability expenditures. These are structural and market issues that have nothing to do with the price of fuel sources.