Tweet
Re: Hawaii photovoltaic going exponential: Oahu more installs in a year than in previous decade, Kauai to get 50% of daytime load by 2015
I just purchased a residential rooftop solar system here in S California. Highlights:
- I sized my system to offset approximately 100% of my electricity usage
- I purchased my system. Leasing appears to popular and/or profitable for installers based on how enthusiastically they promote this
- My expected payback of the net purchase price (after federal & state tax credits) is a little under 8 years.
- I now receive an annual (instead of monthly) electric bill on a "net metering" basis.
- If I consume more power than I generate in a year, I pay for the net amount used at the retail price (approx $0.14 per kWh).
- If I generate more power than I consume in a year, I receive a check from the power company for the net amount generated valued at wholesale electric prices (approx $0.04 per kWh).
- I have to pay a minimum fee to be connected to the grid that is currently ~$62 per year.
The subsidy I am enjoying is a 30% federal tax credit on the cost of the system and the annual $62 fee is not a sufficient allocation of the cost to run an electric utility and provide grid service to my house. Its valid to point out that I am wealthy enough to be able to write a check for this system so why am I getting subsidized. Whether this is justified depends on your view on renewable energy and providing economic incentives for solar technology to mature. If enough people go solar then the subsidy would presumably have to be reduced or eliminated otherwise the fixed costs of running the utility get spread around a diminishing customer base.
I just purchased a residential rooftop solar system here in S California. Highlights:
- I sized my system to offset approximately 100% of my electricity usage
- I purchased my system. Leasing appears to popular and/or profitable for installers based on how enthusiastically they promote this
- My expected payback of the net purchase price (after federal & state tax credits) is a little under 8 years.
- I now receive an annual (instead of monthly) electric bill on a "net metering" basis.
- If I consume more power than I generate in a year, I pay for the net amount used at the retail price (approx $0.14 per kWh).
- If I generate more power than I consume in a year, I receive a check from the power company for the net amount generated valued at wholesale electric prices (approx $0.04 per kWh).
- I have to pay a minimum fee to be connected to the grid that is currently ~$62 per year.
The subsidy I am enjoying is a 30% federal tax credit on the cost of the system and the annual $62 fee is not a sufficient allocation of the cost to run an electric utility and provide grid service to my house. Its valid to point out that I am wealthy enough to be able to write a check for this system so why am I getting subsidized. Whether this is justified depends on your view on renewable energy and providing economic incentives for solar technology to mature. If enough people go solar then the subsidy would presumably have to be reduced or eliminated otherwise the fixed costs of running the utility get spread around a diminishing customer base.
Comment