2025: The Year Electricity Prices Break the Bank

Dear Business Leader,

Electricity prices are surging, and the storm clouds of ever-higher energy bills are looming larger on the horizon.

Businesses already grappling with rising operational costs are about to face an even harsher reality: 2025 is shaping up to be the year energy rates escalate dramatically, forcing companies to reassess their strategies. Solar energy isn’t just a smart option anymore—it’s a financial imperative.

In this week's edition of Solar Energy for Commerical, we dive into why 2025 will be the turning point for commercial solar investments. We’ll explore staggering electricity price trends, undeniable financial benefits, and the bipartisan support that’s propelling solar into the mainstream. Prepare for a newsletter packed with statistics, sourced insights, and powerful quotes to prove one thing: the time to go solar is now.

The Case for 2025: A Perfect Storm of Rising Electricity Rates

The numbers paint a dire picture.

Electricity prices in the U.S. have climbed steadily, with commercial rates seeing an average annual increase of 4.8% over the past decade. And this isn’t just historical data—it’s a forecast of things to come. The U.S. Energy Information Administration (EIA) projects a 2.6% rise in electricity prices in 2025 alone, driven by:

• Rising Natural Gas Prices: Over 40% of electricity in the U.S. is generated from natural gas, and its price volatility has reached historic highs. In 2024, natural gas costs surged 17%, and 2025 is projected to see similar spikes.
• Aging Infrastructure Costs: Utilities are passing on the costs of modernizing the grid to consumers. The American Society of Civil Engineers estimates over $100 billion is needed to stabilize the energy grid by 2030, with a significant chunk of that burden falling on ratepayers in the next few years.
• Demand Growth from Electrification: With industries transitioning to electric fleets and consumers embracing EVs, electricity demand is projected to grow 10% annually through 2026.

What This Means: If your business relies on the grid, brace yourself for bills that will squeeze your margins tighter than ever. In contrast, businesses that embrace solar will be insulated from these surging costs.

The Numbers Don’t Lie: Solar Is Financially Irresistible

As electricity costs climb, the financial case for solar becomes irrefutable. Consider these numbers:

• Cost Decline: The price of commercial solar installations has plummeted 70% since 2010, with further reductions expected in 2025 as technology improves.
• Immediate ROI: Businesses report recovering their solar investment in just 4–6 years, while enjoying an average savings of $50,000 annually for mid-sized installations.
• Tax Credits and Incentives: The federal Investment Tax Credit (ITC) remains at 30%, and bonus depreciation allows businesses to deduct 80% of the project cost in the first year.

These savings aren’t hypothetical. Consider this: A 100,000-square-foot warehouse using solar can save over $100,000 annually, even as electricity prices rise. Solar doesn’t just lower costs—it transforms them into long-term financial stability.

Powerful Voices on Solar’s Economic Impact

Solar is no longer a partisan issue. It’s a pragmatic one, with leaders across the spectrum embracing its economic benefits.

• Senator Lindsey Graham (R-SC): “Investing in solar energy is not just good for the environment; it's a smart business decision that creates jobs and stimulates the economy.”
• Why This Matters: When one of the GOP’s most vocal leaders acknowledges solar’s dual role in profit generation and economic growth, businesses across the political spectrum take notice.
• Governor Greg Abbott (R-TX): “Texas is leading the nation in solar energy production, proving that renewable energy and economic growth go hand in hand.”
• Why This Matters: Texas isn’t just an oil state anymore—it’s a solar powerhouse. Abbott’s support highlights how even energy giants see the tide turning toward renewables.
• Elon Musk, CEO of Tesla: “Solar power will dominate future energy generation, offering businesses a cost-effective and sustainable energy solution.”
• Why This Matters: Musk’s prediction isn’t just hype—Tesla is scaling solar production to unprecedented levels, underscoring its inevitability as the dominant energy source.

2025: The Financial Pivot Point

The tipping point for solar adoption will arrive in 2025, when the gap between grid electricity costs and solar-generated power becomes untenable for businesses.

By then, the cost of solar per kilowatt-hour will average $0.03–$0.05, compared to grid electricity costs exceeding $0.17 in many states.

Beyond cost savings, solar offers businesses:

• Energy Independence: Control over energy production and protection from outages or price hikes.
• Carbon Offsets: Marketable benefits for environmentally conscious clients and consumers.
• Operational Reliability: Solar battery storage ensures uninterrupted operations even during peak demand periods.

What Happens if You Wait?

Delaying solar adoption comes with steep consequences:

• Higher Installation Costs: Labor and material costs are projected to rise 10% by 2026 due to supply chain pressures.
• Lost Tax Incentives: Federal incentives are set to phase down after 2030, reducing long-term ROI for late adopters.
• Competitive Disadvantage: Early adopters will reap the cost savings and market goodwill that come with renewable energy commitments.

As Tom Werner, former CEO of SunPower, aptly said: “Commercial solar installations are a strategic investment that delivers long-term savings and energy independence.”

Actionable Insights for Business Leaders

If you’re ready to future-proof your business, the time to act is now:

1. Assess Your Energy Usage: Determine how much you can save by switching to solar.
2. Explore Financing Options: Federal programs and private financing make solar accessible for businesses of all sizes.
3. Consult Industry Experts: Partner with professionals who understand how to optimize tax incentives and design the right system for your needs.

Conclusion: Don’t Wait for the Bills to Surge

The energy landscape is clear: 2025 will mark a dramatic escalation in electricity costs, and businesses must adapt or face financial strain. Solar energy isn’t just a solution—it’s the only solution for businesses aiming to thrive in this high-cost environment.

With bipartisan support, undeniable financial benefits, and a rapidly closing window of opportunity, the time to switch to solar has never been more urgent.

As Senator Graham reminds us: “It’s not just smart—it’s essential.”

Let 2025 be the year your business rises with the sun.

Stay well. Swim strong!

Warmly,

David

P. P. S. ✝️🙏📖   If you don’t know who I am, my name is David Vogel, retired CEO turned LinkedIn influencer and Founder of the Church of Unity Society. Six mornings a week Live at 7 AM, I preach to the C-suite, igniting their spirits with the power of God. As the publisher of Mindful Ethics, the unapologetic voice of ethics on LinkedIn, I challenge leaders to elevate their game, lead with heart, and redefine what it means to live with purpose.

One More Thing . . .

As I recently retired as CEO of Project SunRize, I remain a trusted consigliere to my son, Evan, who now leads the company with the same dedication to excellence. Project SunRize is proudly donating 3% of all profits from commercial solar construction to The Church of Unity and 3% to The Council For Unity.

Here’s the kicker—100% of the cost for most solar energy systems can be covered by federal benefits (in most, but not all cases)!

Let Project SunRize prove to you it’s free!

Helping Project SunRize helps my church and also helps prevent violence in New York City Schools (via Council For Unity). If you know anyone who’s considering going solar, refer them to Project SunRize.

You’ll get a shark-sized royalty for your referral!

DM me, and I’ll personally make sure your message reaches the right person at SunRize.

Let’s build a brighter future, together!

© Published by: David Vogel, in Wolfeboro, New Hampshire