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Ah, solar power! Free energy! It sounds too good to be true and you know what they say about things that sound too good to be true.
Case in point: anyone who has ever really looked into solar power has already experienced that severe, high-voltage (albeit eco-friendly) shock that comes from adding up all the out-of-pocket costs for a residential solar installation.
In fully half the country, a solar system capable of providing all the electricity needed for an average American home can easily set you back close to $60,000.
Sure, sure the folks selling solar systems claim that homeowners can recoup the cost of going solar in anywhere from seven to ten years…and if you happen to live in certain parts of Florida or California, there’s a chance the hucksters are right.
There are, however, two BIG problems.
First, assuming you do live in one of those areas of Florida or California, a payback time of seven to ten years is just too damned long to motivate all but tree-huggiest amongst us.
Secondly, while a residential solar system in Florida might cost $10,000 and pay itself off in less than 10 years, a system in Minnesota or Michigan could easily run up to and beyond $60,000 and require two, three or more decades to break even.
Even when federal and state tax credits are taken into account (and not all states have them) the costs are still well beyond the reach of the average homeowner.
The solution? Instead of offering federal tax credits for solar installations, the Dept. of Energy should consider placing massive (and I do mean MASSIVE) orders for solar panels. This would cause the per-panel price to plummet. After all, just two or three years ago, a flat panel TV set retailed at well over $2,000. Now one can be bought at any WalMart or BestBuy for less than $400. That’s an 80% price drop!
Solar panel manufacturers would hire more workers, which is great for the economy, and if the panel price drops a comparable 80%, then solar installation companies will pop up everywhere, employing still more people. Moreover, with an 80% price cut, solar would suddenly become affordable for millions more than it is today.
Even die-hard conservatives with there “free market” mantra would have to embrace this concept. Using the buying power of the federal government to drive down prices while creating jobs and lessening our dependence on fossil fuels and foreign imports is the ultimate win-win energy plan!
1 comments :
Tom,
Solar costs have already dropped by more than half in just the last two years. We are selling systems in MD and DE that really do have pretty short paybacks. Other Countries and some States have found the using RECs or Renewable Energy Credits are ways to help assist in the payback on a system. Couple that with the current Federal tax credit of 30% and solar really does make a lot of sense. Please check out our website at www.getsolair.com. We have installed over 30 systems in the last 18 months and have over a dozen set to install in the next 60 days.
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