Beating Energy Inflation: How Solar Can Shield You from Rising Electricity Costs
Electricity prices are not what they used to be. Over the past decade, energy costs across Canada have steadily increased, and British Columbia is no exception. For homeowners and businesses alike, this trend can eat into monthly budgets and make long-term financial planning more uncertain. But what if you could lock in your energy costs and protect yourself from inflation altogether? That's exactly what solar energy offers.
In this post, we'll break down what energy inflation is, how BC Hydro's rates have changed and are forecasted to change, and why solar is a powerful hedge against energy volatility. We'll also cover the added benefit of energy independence, especially during outages or grid instability.
Understanding Energy Inflation
Energy inflation refers to the rising cost of electricity over time. Just like groceries, rent, or fuel, the price you pay per kilowatt-hour (kWh) tends to increase year over year. This happens for many reasons: rising infrastructure costs, inflationary pressures, increased demand, and shifts in the energy mix.
For example, if your power bill is $150 per month today and energy rates increase by 4% annually, your bill could exceed $220/month within 10 years — without you increasing your usage.
BC Hydro's Rate History and Forecast
Over the past decade, BC Hydro's rates have increased steadily. While BC boasts some of the lowest electricity rates in Canada due to its legacy of hydropower infrastructure, those rates have still outpaced general inflation in many years. Here's a quick snapshot:
Between 2014 and 2019, BC Hydro rates increased by more than 28%.
In 2020, BC Hydro froze rates temporarily due to COVID-19.
From 2021 onward, annual increases resumed, with rates rising 2.7% in 2021, and 3% in 2022.
For the 2024–2026 period, BC Hydro's approved rate plan includes increases of 2.3% annually on average, though this is subject to regulatory review and actual operating costs.
These percentage increases may sound modest, but they compound over time and can significantly increase the total amount paid.
Why Solar is a Hedge Against Energy Inflation
When you invest in a solar energy system, you're essentially pre-paying for 25–30 years of electricity at today's prices. The panels may have an upfront cost, but once installed, the energy they produce is free. Here's how that protects you:
1. Locked-In Costs: You eliminate the variable cost of utility-supplied electricity for the portion your solar covers.
2. Predictability: Whether you're a homeowner or a business owner, being able to forecast your electricity expenses with confidence gives you a budgeting advantage.
3. Long-Term Savings: Most solar systems pay for themselves within 8–12 years and then generate free power for another 10–20+ years. That's decades of reduced or eliminated bills.
4. Protection Against Policy Changes: As carbon pricing and utility regulations evolve, electricity could become even more expensive. Solar insulates you from many of these shifts.
Energy Independence and Resilience
Beyond cost savings, solar offers a level of independence that utility power simply can't. This is especially important in remote or wildfire-prone areas, where outages are becoming more common.
When paired with battery storage, your solar system can continue to power your home or business even when the grid goes down. This is known as energy resilience — the ability to keep the lights on when others can't.
Energy independence means:
Keeping essentials like fridges, internet routers, and lights on during power outages.
Reducing reliance on utility infrastructure that may be aging or vulnerable.
Playing an active role in energy security for your community.
In today's world, where grid stability is not always a guarantee, energy resilience is no longer a luxury — it's becoming a necessity.
A Smart Investment in an Uncertain Future
Electricity prices may not spike overnight, but the long-term trend is clear: costs are rising. Whether driven by infrastructure investments, climate policy, or demand growth, energy will likely continue to become more expensive.
By going solar, you take control. You turn a variable monthly expense into a fixed long-term asset, and you gain peace of mind knowing you're protected from both inflation and outages.
If you're ready to explore what solar could look like for your home, farm, or business, our team is here to help. We'll walk you through system sizing, savings projections, financing options, and how to maximize available rebates.
Don't wait until your next rate increase — let solar work for you today.