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So, assuming a uniform 4% increase in price/year...

By the end of the contract, you will be selling your electricity for $0.22 and having to buy electricity for $0.34 - a deficit of $0.12.

So while today’s price difference looks great, the chances of it being swiftly erased are very good.

You should work to get an escalation clause put into the contract for rise in prices. Otherwise you will be stuck in a very sour deal in about ten years.

Year Sell Buy Difference
1 $0.22 $0.16 $0.06
2 $0.22 $0.17 $0.05
3 $0.22 $0.17 $0.05
4 $0.22 $0.18 $0.04
5 $0.22 $0.19 $0.03
6 $0.22 $0.19 $0.03
7 $0.22 $0.20 $0.02
8 $0.22 $0.21 $0.01
9 $0.22 $0.22 $0.00
10 $0.22 $0.23 -$0.01
11 $0.22 $0.24 -$0.02
12 $0.22 $0.25 -$0.03
13 $0.22 $0.26 -$0.04
14 $0.22 $0.27 -$0.05
15 $0.22 $0.28 -$0.06
16 $0.22 $0.29 -$0.07
17 $0.22 $0.30 -$0.08
18 $0.22 $0.31 -$0.09
19 $0.22 $0.32 -$0.10
20 $0.22 $0.34 -$0.12

As stated previously, another concern of mine is the future cost of electricity. My scientific mind tells me that technology will lead to cheaper energy costs, but my business mind tells me that for profit enterprises will always look for ways to increase ARPU (average revenue per user).

Hence, my concerns.