Electricity Policy


Last updateTue, 26 May 2015 8pm

ISSN 2331-1223 Facebook Twitter


One cost measure of going green

Over the last five years, 49 of 50 states saw an increase in their average cost of electricity. On average over the 2005-10 period, retail electricity costs in the US increased by 4.1 percent annually. In real dollars, the average cost/kWh increased by a total of 1.8¢ over the period, which points to the rising costs of producing and distributing energy regardless of the generating technologies used.

To frame the ratepayer impact of utilizing renewable energy technologies, we compared retail electricity price increases in the five states with the highest capacity of solar PV and wind with both the US average and the five states with the lowest capacity of solar PV and wind. The results challenge the prevailing perception that renewable generation is expensive to ratepayers.

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