How is electric rate inflation determined?
This rate is estimated by looking at previous electric rate escalation data available from the U.S. D.O.E. Energy Information Administration (http://www.eia.doe.gov/fuelelectric.html). From 1990 to 2008, most places in the U.S. had an electric rate escalation less than 4%. It might be seen as optimistic to assume escalation greater than 4% and may hurt the credibility of the analysis. See http://www.ongrid.net/papers/PaybackOnSolarSERG.pdf for more information.
