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Power The Almighty Buck United States

Rooftop Solar Could Reach Price Parity In the US By 2016 516

Lucas123 writes: The cost of rooftop solar-powered electricity will be on par with prices of coal-powered energy and other conventional sources in all 50 U.S. states in just two years, a leap from today where PV energy has price parity in only 10 states, according to Deutsche Bank's leading solar industry analyst. The sharp decline in solar energy costs is the result of increased economies of scale leading to cheaper photovoltaic panels, new leasing models and declining installation costs, Deutsche Bank's Vishal Shah stated in a recent report. The cost of solar-generated electricity in the top 10 states for capacity ranges from 11-15 cents per kilowatt hour (c/kWh), compared to the retail electricity price of 11-37 c/kWh. Amit Ronen, a former Congressional staffer behind legislation that created an investment tax credit for solar installations, said one of the only impediments to decreasing solar electricity prices are fees proposed by utilities on customers who install solar and take advantage of net metering, or the ability to sell excess power back to utilities.
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Rooftop Solar Could Reach Price Parity In the US By 2016

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  • by Anonymous Coward on Tuesday November 18, 2014 @08:38PM (#48414381)

    In the craphole region in which I live they've already passed ordinances about things like wind turbines within city limits. They call it an "eye sore" and "disruptive." That's how the utility companies will outlaw solar paneling after donating generously to their politician buddies. Either that or they'll so overregulate them that the price will skyrocket beyond most people's financial reach.

    • Re: (Score:3, Funny)

      by Anonymous Coward

      Everybody knows wind turbines are eye sores.

      They obscure all the lovely smoke stacks.

      • Everybody knows wind turbines are eye sores. They obscure all the lovely smoke stacks.

        That's good news, because this story is about rooftop solar.

        In many parts of the world, and no doubt in many parts of the USA, rooftop solar is already at parity if subsidies and externalised costs are taken into account. In direct costs alone, the US pays around 50 billion dollars annually to subsidise fossil fuels. Internationally it's close to a trillion dollars.

        • by Rei ( 128717 ) on Wednesday November 19, 2014 @04:30AM (#48416027) Homepage

          It depends on how you measure it. For example, here it says that solar is rapidly nearing cost parity except in places where restrictions and fees on net metering are in replace. But it's only fair that there should be such fees.

          Part of the reason for this battle in the US is the stupid way US consumers are billed, you usually pay a single per-kWh fee. Here in Iceland our electricity bills are broken down into a "distribution fee", for the infrastructure, and a "generation fee", for the power. Surprise surprise, all of that infrastructure costs some serious money, about as much as the cost of generation itself. If a person uses solar and net-meters out at zero, they're still using all of that infrastructure (unless they're off-grid, but nobody's arguing that off-grid is anywhere near price parity). Even more than that you're relying on the existence and functionality of power plants to keep the lights on during the day. If everyone did like you, then there'd have to be instead of power plants massive daytime-energy-storage buffers, be they batteries, pumped hydro, etc (in addition to all of the wires, transformers, etc).

          Now if you don't have to pay the utility, who exactly is supposed to fund this stuff? It's not cheap.

          Yes, many US states require free net metering and power resale. It's the law, so utilities have to do it. But all you're doing at the time being is transferring the solar-generators' share of the infrastructure costs onto the non-solar-generators share. So when you report that these people can "break even", is that really a fair comparison?

          Don't get me wrong, I'm a big solar fan. And I think that to reach true parity subsidies - such as these free net metering laws - are a great way to help get solar to that point. But let's not kid ourselves, it is a subsidy.

          (Things would be a lot less controversial if you'd properly break up your power bills into distribution vs. generation costs. Personally I think bills should be even further broken down to time intervals over the course of the day and have the purchase / sale price of electricity match the actual market price for that time. It'd be a big boon for solar users, at least in warm places with low to moderate market penetration where midday electricity is expensive and nighttime electricity is cheap)

        • In many parts of the world, and no doubt in many parts of the USA, rooftop solar is already at parity if subsidies and externalised costs are taken into account.

          Do these externatilities and subsidies include the cost of keeping coal plants at standby for nights and cloudy days, or are we talking about fully grid-independent installations?

          Speaking of which, are there any plug-and-play grid-free kits, the way there are other appliances, or do people have to hack something together from separate parts? Becaus

    • by Harlequin80 ( 1671040 ) on Tuesday November 18, 2014 @08:57PM (#48414463)

      There was a wind turbine near me that was removed by local council order. It was one of those spiral tube looking ones and the person had put it up in their front yard on essentially a flag pole with guy wires.

      The thing had a fair amount of slap in the pole which was kinda scary to watch. But the main thing was this thing screamed when its speed got up. Not sure what it was, whether it was the bearings, the motor or maybe the brakes but it started to sound like a jet turbine spinning up when it was going fast (and bloody hell did it spin fast!)

      I used to drive past it on the way to and from work and could comfortably hear it over the car's engine and aircon with the windows closed.

    • "eye sore" (Score:5, Insightful)

      by grimJester ( 890090 ) on Tuesday November 18, 2014 @09:01PM (#48414487)
      You know they're desperate when the only argument against new technologies they can come up with is that they're ugly.
      • Re:"eye sore" (Score:4, Interesting)

        by davydagger ( 2566757 ) on Tuesday November 18, 2014 @09:06PM (#48414505)
        Don't forget these imaginary "sicknesses" due to wind turbines. All the while forgetting the real health hazards of fracking. Thats the thing about "conspiracy" theorists. Is that they have the demor, and attitude of a truth seeking movement, ignoring the low hanging fruit of very obvious ills in society, to at best reach around conjectures and "what-ifs", that convienantly blame who they want to blame for society's problems.
        • Re: (Score:3, Insightful)

          by rmdingler ( 1955220 )
          Demor, you say.

          Please remember. In the rush to vilify various and sundry sources of energy vis-a-vis environmental impact, that all energy comes at an environmental cost. We will not do without the electricity in our homes and fuel for our human-toters and goodie-transport vehicles.

          One day, when the other grid-friendly options are all exploited, our offspring will enjoy ubiquitous clean and relatively safe nuclear power.

          • In the rush to vilify various and sundry sources of energy vis-a-vis environmental impact, that all energy comes at an environmental cost.

            did I say anything to the contrary? Of course, and even things like bicycles have carbon costs associated with them. But, in your rush to vilify various sources of energy, vis-a-vsa enviromental impact, you must consider that like all other costs in life, not all are the same.

            It would be absolutely ludicris to say that solar, wind, or even hydro-electric has the same, similar, or in the same leauge enviromental costs any method of combustion to produce power.

            One day, when the other grid-friendly options are all exploited, our offspring will enjoy ubiquitous clean and relatively safe nuclear power.

            I feel as if you jumped straight to a conclu

      • That's hardly desperate. The problem with windturbines is they are really big and placed where there is wind. I have no problem with them on peoples farms and such. But last time I was skiing in Austria I climbed up a pristine mountain with camera in backpack, treaking through a snow national park and when I got to the top... wind turbines on every peak.

        I wonder if the greenies would complain if instead we put up a billboard.

        • by Jeremi ( 14640 )

          I wonder if the greenies would complain if instead we put up a billboard.

          Yes, and they'd be right to do so. A wind turbine may disturb a pristine landscape, but on the other hand it's also helping transition us away from our dependence on fossil fuels, so there is a compensating environmental benefit.

          A billboard, on the other hand, despoils the landscape and has no compensating environmental benefit. From an environmental perspective, it's a total loss.

          (of course if you'd like to have both your pristine landscapes and your wind turbines, than placing the wind turbines several

        • by dbIII ( 701233 )

          wind turbines on every peak

          Right next to the telecommunication towers.
          It's not exactly wilderness.

      • Re:"eye sore" (Score:4, Interesting)

        by westlake ( 615356 ) on Tuesday November 18, 2014 @10:42PM (#48414867)

        You know they're desperate when the only argument against new technologies they can come up with is that they're ugly.

        A lot of money is being spent here to reclaim waterfront property for green space, nature reserves, parks and recreation. Ugly comes at a price that not everyone is willing to pay anymore, and the geek needs to see that clearly.

    • Comment removed (Score:5, Insightful)

      by account_deleted ( 4530225 ) on Tuesday November 18, 2014 @09:17PM (#48414555)
      Comment removed based on user account deletion
      • by PopeRatzo ( 965947 ) on Tuesday November 18, 2014 @09:21PM (#48414579) Journal

        They're most definitely both of those things.

        Thank goodness coal-fired power plants are so aesthetically pleasing and pleasant to live around.

        • by tmosley ( 996283 )
          They are more geographically confined, and not constantly under construction. Also usually far from areas where people live and work.
        • by khallow ( 566160 )

          Thank goodness coal-fired power plants are so aesthetically pleasing and pleasant to live around.

          I'm sure the same people would find coal power plants just as much an eyesore. But such a plant would occupy less land and be next to less whiners.

      • by Hadlock ( 143607 )

        Yeah but now that it's in place how many trucks are up there? Other than periodic maintenance, how many 18 wheelers service that farm in a given year? Three? Plus now you have a bunch of awesome ridge top mountain biking trails, improved access to the wilderness etc etc. Other than the short term inconvenience of a major infrastructure project going in (oh no!) your long term view of the even longer term benefits of the site seem awfully jaded given the extremely low impact (i.e. none) to your daily life.

      • huge amounts of deforestation (nine thousand acres worth),

        Really?

        It looks from the aerial photography you link to that they just cut tracks to each turbine.

        Wind power is a joke regardless of how you look at it.

        I look at it from price per unit, insulation from oscillating fuel prices, greenhouse emissions, and production of harmful waste.

        It's not as funny as you seem to think.

      • by thej1nx ( 763573 )

        Nice red herring there.

        Did you bother reading the article title however? It talks about SOLAR. If your only argument is that wind turbines should not be near residential areas, nobody is going to disagree much.
        If wind power is such a joke, people will realize it is a money losing proposition, and they will NOT invest in wind turbines. Isn't US supposed to be all about capitalism, and stuff? Why are you against market taking its own shape? What are you, a f***ing COMMIE now????!!! :)

      • by Uecker ( 1842596 )

        Land use is only one aspect of environmental impact.

        Most of the area used by wind farms can be used for something else, so your definition of "land use" is somewhat questionable.

        Most of the environmental impact of nuclear is not from the plant, but from other parts of the chain, especially mining.

        Having said that, I agree that nuclear is overall a very environmentally friendly energy source. It just is far too expensive to be of much use.

  • My two cents... (Score:5, Insightful)

    by Anonymous Coward on Tuesday November 18, 2014 @08:47PM (#48414419)

    I think it'd be fine for utilities to charge something nominal for the privilege of solar. After all, you're not off the grid AND the power company has to deal with the upkeep of the cables. Provided it's not a money grab... that it's justified.

    Net metering is when it runs backwards? That's probably find in a single month. But to carry it out over the year doesn't seem fair because during winter months, the solar panel user really is taking advantage of the grid.

    As for the pricing when there's a surplus during the summer (when you sell it back), as I said before, you're not dealing with the cables/power lines... they are (the power company).

    If solar power reduces carbon output from coal, good. Personally, if I could afford solar panels, I'd be interested in what uses it could provide during power outages combined with a battery backup for certain breakers/circuits (fridge, lights, and maybe one for TV watching).

    • Re:My two cents... (Score:5, Informative)

      by bored_engineer ( 951004 ) on Tuesday November 18, 2014 @09:20PM (#48414571)

      I think it'd be fine for utilities to charge something nominal for the privilege of solar.

      I couldn't agree more. Where I live, I pay a monthly fee simply to be connected to the grid, whether I use any electricity or not. I assume that if micro-generation becomes common that the co-op must increase this fee. I will happily pay an increased fee to have the night-time and winter generation that are impossible with solar.

      Personally, if I could afford solar panels, I'd be interested in what uses it could provide during power outages combined with a battery backup for certain breakers/circuits (fridge, lights, and maybe one for TV watching).

      A transfer switch, combined with a good inverter (or a pair, depending on your load) can provide this today. (The transfer switch is mandatory for any solar install, anyway, so as to keep utility workers safe.) In fact, this has been possible for at least 15 years. In fact, a good inverter can act as the charge controller for your batteries, as well as manage a back-up generator to keep the batteries charged during an extended outage. If you want a good system that provides backup power, I would talk to somebody about designing it for you, rather than trying to cobble it together yourself.

      • by Khyber ( 864651 )

        " In fact, a good inverter can act as the charge controller for your batteries"

        Charging a battery off of AC? Surely you mean RECTIFIER.

      • The only problem is the fee is rarely what you want. The only way for the fee to be fair is for the costs of grid maintenance to be separated from power purchase completely. In fact the only fair thing would be to fragment the company into a single company running the grid with only grid expenses then to split those costs evenly across all subscribers, including business.

        What the power companies want is to charge a fee without justification or even providing financials to justify it. The most recent tactic

    • Re:My two cents... (Score:5, Insightful)

      by dgatwood ( 11270 ) on Tuesday November 18, 2014 @09:47PM (#48414669) Homepage Journal

      Net metering is when it runs backwards? That's probably find in a single month. But to carry it out over the year doesn't seem fair because during winter months, the solar panel user really is taking advantage of the grid.

      How is that not fair? As a solar panel user, you’re no different from any other generator company. If I’m producing power, I darn well expect the power company to pay me for it, just as I expect to pay them if I’m using more power than I produce. What would be unfair would be an arbitrary limit to how far ahead you can build up bill credits towards future bills, because that would mean that I produced power that the power company benefitted from, and sold to somebody else for more than they should have paid me for it, but then didn’t pay me for it. That’s called stealing where I come from.

      Besides, on average, solar power users produce power during the day, when demand is high and the cost of production is relatively high (because peaker plants are expensive). They consume power mostly at night, when demand is low and the cost of production is low. So no matter how long a cycle you average it over, the power plants are making a big profit from buying relatively cheap solar power instead of expensive natural gas peaker plant power (while selling that power at the same price). That more than pays for the negligible marginal grid maintenance costs arising out of providing power to one extra home.

      And if you produce more power than you consume for a whole year, the power company gets an even bigger windfall profit. In most places, net metering happens on a one-year cycle. They pay you if you use less power than you produce over the course of that one-year period, but at least here in California, they pay a whopping 3 to 4 cents per kWh (less than half the production cost for solar, last I checked). As a result, there’s really zero advantage to overbuilding; the goal is to get as close as possible to breaking even over the year, without going significantly over. And, of course, they resold your extra power at up to 38 cents per kWh....

      • Besides, on average, solar power users produce power during the day, when demand is high and the cost of production is relatively high (because peaker plants are expensive).

        That's currently true, but look at Hawaii - they're quickly reaching the point where they'll need their peakers more at night than during the day. They're quickly reaching the point where some of their distribution circuits will occasionally go negative during the day.

        Net metering only works when you are indeed on average selling expensive electricity for the same rate you're buying cheap electricity. If more than 20% or so homes and businesses install solar panels the equation flips - now nighttime power

  • With or without the government subsidies?

    • by geekoid ( 135745 )

      For which side?

  • by presidenteloco ( 659168 ) on Tuesday November 18, 2014 @08:54PM (#48414449)

    "fees proposed by utilities on customers who install solar and take advantage of net metering, or the ability to sell excess power back to utilities"

    this reminds me of the states that are passing taxes on electric vehicles because they don't pay gas tax.

    There is a monumental, staggering level of myopia in those who propose and enact measures like these.

    We have to transition to ~ 90% of the transport and energy in the economy to non-fossil, in a damn hurry (e.g. 2050), and we are way less than 1% of the way to where we need to get, so why the H3LLLLLL! would anyone be trying to put the brakes on the change already. Insanity, or stupidity of the highest order.

    • by geekoid ( 135745 )

      But we need to pay for infrastructure. SO we need to tax electricity to recoup lost revenue form the gas tax.

      The fees on solar are another push by power companies to screw over home energy collectors.
      They can already buy it at market value to resell to industry.

      • Should the power companies be FORCED to just eat the fees of hooking up and stabilizing a power source that's only producing cheap power during periods where demand is lowest?

        I think not.

        • Demand for power is lowest midday? Funny how time of use metering charges you more for daytime usage due to high demand. Must be a scam.
        • by presidenteloco ( 659168 ) on Tuesday November 18, 2014 @09:22PM (#48414581)

          FYI demand in summer in many states is highest with mid-day air conditioning, same time as solar peaks.

          The grid as a whole needs to add much more storage, and long distance HVDC transmission lines, to balance intermittent power sources.

          My general position is maybe start reducing the incentives for solar, EVs etc once we are at say 50% of where we need to get to in the level of penetration of these technologies. Until then, get any additional needed infrastructure revenue from gradually increasing carbon taxes.

          Make sure there are both carbon taxes and affordable alternatives to burning fossil fuels.
          That's the recipe for a successful transition of the energy system.

          • by Chas ( 5144 )

            50%?

            Currently solar makes up about 3% of all renewable energy produced in the US.

            Renewable energy accounts for about 13% of domestically produced power and about 11.2% of total production.

            So. 3% of of 13% (I'll be generous and take the higher number). That's approximately 0.0039% of domestically produced power.

            What is the appropriate "level of penetration" for this tech compared to total generation? Half a percent? A whole percent

            Is the solar install base REALLY going to be able to accommodate a 15-30,0

        • by Khyber ( 864651 ) <techkitsune@gmail.com> on Tuesday November 18, 2014 @09:44PM (#48414657) Homepage Journal

          " a power source that's only producing cheap power during periods where demand is lowest?"

          Yep, I can tell you don't live anywhere in the southern United States. Especially the southwestern areas.

      • by dgatwood ( 11270 ) on Tuesday November 18, 2014 @10:00PM (#48414707) Homepage Journal

        But we need to pay for infrastructure. SO we need to tax electricity to recoup lost revenue form the gas tax.

        It would make more sense to crank up the diesel tax. Big trucks cause about three orders of magnitude more damage to roads than cars do anyway (one 18 wheeler does as much damage as 9,600 cars, according to the GAO), so it is only fair that trucking companies should pay essentially the entire cost of upkeep. If they raise the taxes high enough, perhaps we’ll see a resurgence in the use of trains for shipping (which is more energy efficient, too).

        • Much like bandwidth, trains have that pesky "last mile" issue to deal with...

          • Re: (Score:3, Insightful)

            by dgatwood ( 11270 )

            Certainly, but that doesn’t negate the huge benefit of keeping most of them off the interstates for the first few hundred miles. :-)

    • by Charliemopps ( 1157495 ) on Tuesday November 18, 2014 @09:12PM (#48414533)

      The price of electricity is not just the price of generation.
      The price of transportation is not just the price of fuel.

      If you gave fossil fuels the same advantage of not charging infrastructure costs, taxes, government regulations on production etc... like you do with solar, you'd find that they are virtually free. There is no conceivable way solar is even remotely comparable until the government steps in and starts manipulating the numbers for the public good. You can argue that the CO2 issue is important enough to justify that interference, but lets not lie to ourselves about the numbers.

      • by rahvin112 ( 446269 ) on Tuesday November 18, 2014 @10:36PM (#48414841)

        You are so very wrong.

        Solar IS cost competitive. And with in a very short period, if current manufacturing price drops continue, it will be the cheapest source of power. But sure, ignore the real numbers the real reality of the situation if you wish. These numbers have been the talk of wall street for more than 2 years. Solar companies are turning down investment right now because there is too much being offered. But feel free to continue to display your ignorance. Even a fool could verify the real numbers with Google.

      • If you gave fossil fuels the same advantage of not charging [...] government regulations on production etc... like you do with solar,

        There's no government regulations on production of solar?
        You can't even install solar panels without a licensed electrician to certify that your house isn't going to burn down.

        I'm very interested in hearing your thoughts about the lack of regulation for solar.

      • by dave420 ( 699308 )
        Let's also bring up the fact that everyone's paying for the cost of pollution caused by burning fossil fuels, and if not today, then definitely in the future. If we factor that one in, they're anything but free. Sure, you can hide who has to pay for it in the end (or even when), but there is a huge price associated with burning them. Again - let's not lie.
  • Is this price parity before or after absorbing massive subsidies from taxpayers and electricty consumers? If it is after, then the idea is not scalable.
    • by grimJester ( 890090 ) on Tuesday November 18, 2014 @09:10PM (#48414523)
      There's a 30% tax credit expiring in 2016. Not sure what you mean about an "idea" and being "scalable"; it's just a bank projecting in what areas photovoltaics will be worthwhile when. After 2016, you'll presumably still have new installations worthwhile in the south of the country and the area creeping northwards as prices continue going down.
    • Re:Subsidies? (Score:5, Interesting)

      by ShadowRangerRIT ( 1301549 ) on Tuesday November 18, 2014 @09:15PM (#48414545)
      How many tax subsidies finance into your average power plant? How much are the indirect costs (ignoring CO2 emissions, let's just focus on locally increased health care costs from coal pollution, long term storage costs for nuclear waste, military adventurism for oil, etc.) of "traditional" fuels?
    • Is this price parity before or after absorbing massive subsidies from taxpayers and electricty consumers? If it is after, then the idea is not scalable.

      After. Yes, it includes the subsidies being renewed.

      The Deutsche Bank's projection assumes that there will be three things happening, which are unlikely:

      (1) It assumes that the door-to-door sales model of whatever solar technology happens to be cheapest on the Thursday they ring your doorbell will result in substantial cost savings which can then be kept back from the consumer as additional profit

      (2) It assumes that the utility companies aren't installing all those "smart meters" so that they can tariff at

  • by Crashmarik ( 635988 ) on Tuesday November 18, 2014 @08:57PM (#48414469)

    At the very least, rooftop solar producers will wind only being credited at the rate the utilities buy power wholesale. If you take a look http://www.eia.gov/electricity... [eia.gov] that's considerably less than the retail cost.

  • by Karmashock ( 2415832 ) on Tuesday November 18, 2014 @09:10PM (#48414525)

    Prices are so distorted at this point it is almost impossible to tell what anything costs.

    • by tomhath ( 637240 ) on Tuesday November 18, 2014 @09:24PM (#48414591)
      His prediction that there will be a big increase in solar installations is based on what will be happening to subsidies in the next few years (he expects a rush to install as much as possible before the programs expire). In other words, the actual cost of solar won't really reach price parity - what he's really saying is that manufacturers of small scale solar power generators might see a short lived boom in the near term.
  • It seems to me that the energy utilities need to restructure their billing. I suggest dividing it into two parts, one of which is related to the need to pay for infrastructure maintenance and expansion, while the other is related to the energy they sell. The first part could be charged to every customer equally. The second would depend on energy usage. In places where the customers can sell energy to the utilities, the most reasonable answer was devised and implemented in various places years ago: Just
    • Re: (Score:2, Interesting)

      by dgatwood ( 11270 )

      Why? That’s just silly. Solar users sell power when prices are high and buy power when prices are low, but their billing is based on kWh, not cost, so the power that those customers get credit for during the day has a much higher value to the power company than the power that they get back at night. The power companies make a huge profit off of those solar users’ surplus power compared with what they would be paying for peaker plants. They can readily afford to absorb the infrastructure cos

  • by PopeRatzo ( 965947 ) on Tuesday November 18, 2014 @09:35PM (#48414623) Journal

    The holy grail for solar and other renewables is "off-grid".

    I'm not sure how you can look at this inexorable progress and not see that's where it's headed.

    It's why there are already places where it's illegal to be off the grid.

    I'll bet you that before we have ubiquitous self-driving cars we have homes that can produce their own power without the need for a "grid". My hope is that some day the grid will be the equivalent of the streetcar tracks that are still under the pavement in many cities. This is why I'm opposed to any large-scale public subsidy of the "smart grid".

    Now that I think about it, my place has a "coach house" in the back. I've turned it into a garage, but there is still a hayloft in it. I've even left the block and tackle above the loft door for decoration. And that's just a few blocks from downtown Chicago. I hope I live long enough to see "the grid" become just another 20th century artifact. Of course, there are some powerful forces aligned to prevent that from ever happening.

    • The holy grail for solar and other renewables is "off-grid".

      For example, Africa.

    • by rahvin112 ( 446269 ) on Tuesday November 18, 2014 @11:10PM (#48414995)

      Off-grid is what the power companies should actually be afraid of. Unfortunately they are in denial about that little tidbit. Off-grid is already cost competitive in Hawaii (mostly because their power is $0.35kwhr).

      But battery prices are falling in tandem with solar panel prices. And I suspect any law banning off-grid will quickly be squashed by the courts as unconstitutional for many reasons. But off-grid represents a death spiral and would make every asset of the power company almost worthless. That death spiral is what they should fear, because every time they make being on grid with panels harder they are going to drive someone off-grid and the more people they do drive off grid the higher the shared costs will be which will drive more people off grid starting a death spiral that ends with bankruptcy and assets that are without value.

      That death spiral is what Hawaii power is starting to deal with because of their mucking about with net metering. They've begun to change their tune but it could very well be too late for them. Hopefully it will serve as a lesson for all the other power companies before they walk down the same path.

  • by ggpauly ( 263626 ) on Tuesday November 18, 2014 @09:53PM (#48414681) Homepage

    A solar installation is an investment. The proper analysis is return on investment. Current actual price before credits and rebates for a 4kW rooftop (16 panels, abt 25 m^2), installed, is about $16,000. This includes a substantial profit for the installer -- it should be available for less in a competitive market. There's a 30% US federal tax rebate, and here in North Carolina a 35% state tax rebate and a ~$1300 utility kickback. Assuming your tax situation allows you to take advantage of the credits, the net cost is about $6000. This will completely offset an annual electric bill of about $2000 - $2500. This is about 35% return on investment. Amortizing the net cost over a lifetime of 15-20 years for various components gives about 30% per year return. This return is tax free. This is an astoundingly good return. Berkshire Hathaway's total return over 49 years is 20% annually.

    In other jurisdictions without the state tax rebate and utility kickback the tax-free return is 10 to 15%. Much better than the long-term return of any mutual fund.

    Without any direct incentives the return is about 6%, tax free, very safe. CDs are currently about 1%.

    Comparing the actual costs is the fair comparison. Apparently TFA omitted the actual government incentives on solar, while implicitly including them in the per kWh utility figures.

    Rooftop solar has other benefits as well. Inverters are available that provide power during grid failure (during sunshine), and there are external benefits in replacing dirty coal or dirtier nuke power and slightly reducing the size and power of a monopoly corporation.

    • by Xyrus ( 755017 )

      A solar installation is an investment. The proper analysis is return on investment. Current actual price before credits and rebates for a 4kW rooftop (16 panels, abt 25 m^2), installed, is about $16,000. This includes a substantial profit for the installer -- it should be available for less in a competitive market...

      It isn't the cost of the hardware that's preventing wider adoption. It is the completely ridiculous cost of installation which can easily double to triple the price. A number of states won't allow you to install your own panels and then hire an electrician to finish connection to the grid. You have to get a "certified" installer.

      As an example, a 5KW system costs around $9000. The estimate I got for installing the system was $23,000, an additional $14,000 for installation. This is literally for a single day

  • "one of the only impediments to decreasing solar electricity prices are fees proposed [edit: and imposed] by utilities on customers who install solar and take advantage of net metering, or the ability to sell excess power back to utilities."

    • Re: (Score:3, Insightful)

      by Anonymous Coward

      The price you receive has to be the value of that electricity to the utility. The calculation of that value is tricky because the utility has very high fixed costs related to infrastructure, operations, and generation; your electricity doesn't reduce their fixed costs at all. You might save them some variable costs of generation but you might also cause them to incur some additional management costs.

  • by MindPrison ( 864299 ) on Tuesday November 18, 2014 @10:44PM (#48414869) Journal
    ...at least in Scandinavia.

    I often drool over the prices in China, cheap CHEAP and functional solar panels I could have gotten for pittens. But the taxes are so high that it evens out the score. Which is kind of strange since the government is subsidizing solar power anyway, but it's all lost on the import tax alone.
  • by jonwil ( 467024 ) on Tuesday November 18, 2014 @11:56PM (#48415213)

    Many utilities in the US are fighting rooftop solar through various means. The south-eastern states in particular are the worst for this.

    Utilities are getting laws passed banning the "solar lease scheme" so popular in other parts of the US. And getting laws passed banning off-grid solar installs. And not providing net metering (either "you get paid for your excess electricity" or the "electricity you feed into the grid offsets what you use when the sun isn't shining but you wont get any money if you produce more than you use" model). And doing everything they can to push electricity generated from dirty black coal or nuclear reactors built to outdated 50s era designs instead of clean green energy.

    • by bussdriver ( 620565 ) on Wednesday November 19, 2014 @12:47AM (#48415407)

      Many places in the USA have corrupted permit schemes. You don't pay a permit for an expert to verify your changes and protect the public-- you pay a % based upon the cost of the renovation. It is a home change TAX under another name and that is why you need permits for the most basic stupid things and why inspectors ignore checking most of the BS stuff; plus they are running around justifying the tax checking things that do not need it or enforcing the stupid rules (along with the good ones.)

      I just got finished paying a 15% permit tax on top of the 7.5% sales tax for changes I made which were not inspected other than asking what the general plan was. On a huge solar installation that would be crazy just to have them make sure a few wires were connected properly.

  • now for storage (Score:3, Insightful)

    by dickens ( 31040 ) on Wednesday November 19, 2014 @12:12AM (#48415281) Homepage

    If we had distributed storage (better batteries) we could crush the fossil fuel industry for good with this, and bankrupt Russia and the Saudis for good measure. It's within reach, within a very few years.

  • Extrapolation story (Score:4, Informative)

    by Tablizer ( 95088 ) on Wednesday November 19, 2014 @02:18AM (#48415603) Journal

    About 10 years ago I studied a graph of the cost of solar versus conventional energy over time, extrapolated out, and saw them crossing in roughly 10 years. So, I invested in solar companies thinking they are going to take over conventional energy.

    I got the crossing part right. What I got wrong is that those were domestic companies. Chinese companies generally have beaten domestic companies such that my stocks languished.

    Predicting the future is not good enough; you have to predict the location also. Warren Buffet, I am not.

Remember: Silly is a state of Mind, Stupid is a way of Life. -- Dave Butler

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