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Effect of Inflation of Future Value, Such as Cost of Energy

This table shows, for instance, that a 9 percent annual inflation rate leads to a new value 5.14 times as much in 20 years. If your present electrical rate is 5 cents per kWh, it would then be 5 x 5.14 = 25.7 cents. If propane or heating oil costs 40 cents per gallon now, it would be $2.06 per gallon in 20 years.

The average cost of these items over the years, (instead of the final value) is shown in the following chart.

Rate of Average Value or Cost Over:

Inflation

Renewable Energy 101

Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

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