Energy is no longer a resource we can blindly throw money at with "feel good" intentions...
$25,000 solar install with a 15 year life that only replaces 60% of demand use... sounds like the investors need a economics 101 class.
$25,000 solar install with a 15 year life that only replaces 60% of demand use... sounds like the investors need a economics 101 class.
Article takes a hard look at the economics of home solar installations in even the sunniest parts of America.
SF Gate: Why is it so hard to get solar power in San Francisco?
-worried about the environment, but it's also about money: "I want it to pay for all my electricity," ... Murphy thought installing solar panels would be worth the up-front cost, especially if federal and state rebates made it more feasible. His roof — sturdy and pitched toward the south, unshaded by trees or other buildings, and located in direct sun— seemed perfectly suited for solar energy.
-worried about the environment, but it's also about money: "I want it to pay for all my electricity," ... Murphy thought installing solar panels would be worth the up-front cost, especially if federal and state rebates made it more feasible. His roof — sturdy and pitched toward the south, unshaded by trees or other buildings, and located in direct sun— seemed perfectly suited for solar energy.
He was told his roof could only fit a 2.8 kilowatt system, which would cover about 60 percent of his energy needs — and cost about $25,000.
Murphy is apoplectic about the results. "What's 60 percent? That's like going out with her for three-quarters of the night. I want to take her home," he said.
While the federal incentive shaves $2,000 off the cost, the state rebate program — in place since January 2007 — is a set allocation that declines over time: the later you apply, the less you get. Today Murphy can get about $1.90 per watt back from the state, whereas at the start of the program it was $2.50 per watt.
"The snake oil salesmen of yesterday are the solar panel installers of today," Murphy said.
Haase Comments:
I am not sure any of these experts have done a basic ROI study on the solar installs? It is imperative all energy investments (unless research) directly result in a net savings.
With solar, scale is everything, go big or stay home. No one should be offering loans, incentives or subsidizes to any energy program that does not yield a savings return on capital investment before hardware usable lifespan is depleted.
That is why lease programs are typically structured at 3.2 kilowatt minimums (break even) and would need to be at least 5 kilowatt without loans, incentives or subsidizes just to survive.
Boy, these guys should try energy in Wisconsin... Solar panels with 3 feet of snow on top is a real issue ;-)
