BC Hydro will likely increase their rates in the very near future, according to Energy Minister Bill Bennett in a recent Vancouver Sun article. According to the article, Bennett says rate hikes are inevitable due to necessary capital investments. In terms of renewable energy in BC, this means a more attractive return on investment.

Right now, solar is 10 to 15 per cent higher than hydro's top tier rate of 10.5 cents per kWh. For example, a small residential solar grid-tie system can be installed at 12.5 cents a kWh. However, with the reality of even a small hydro increase this gap narrows to put solar closer or on par to utility rates.

One of the main benefits of a renewable energy system is that it locks into a fixed rate for 30 plus years, which is the life span of these systems. With rate hikes from utility companies it becomes all the more attractive when looking to the future, where further rate hikes have a probability of occurring. Simply put, solar power provides freedom from energy price volatility and can help protect against rising energy costs with its reliance on free renewable energy.

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