Is Solar Power Really too Expensive or Is that Just What Opponents Want You to Think

Example of a centralized solar plant model where everything would be controlled by the utility company - even price.

Recently I visited the west coast of the U.S. and being a resident of Florida for the past twenty-plus years I must say that I was totally exhilarated by what I saw in California, and totally disappointed with what I know to be the case in Florida. Over and over, I saw the rooftops of homes covered with solar panels. Compare that to what is the case in Florida where such a sight is barely nascent. The simple fact is that Florida (the Sunshine State) homeowners are virtually non-existent when it comes to distributive solar power or rooftop solar. How is this possible when you consider the following presumption…

Take for example a homeowner with a home of 2500 sq ft of living area; probably pays between $250-$350 per month for their electric bill.
Now we all know there is plenty of political nonsense going on in the energy world, especially when it comes to renewable or clean energy. On the one hand we have Big Oil supporting, if anything at all, a “centralized” model where renewable/clean energy would be controlled by the utility companies. This in essence means that all residents of Florida whether they are homeowners or not, would be required through their electric bill to pay for; the utility company’s design, construction build-out and anything related to their deliver of their supplied renewable/clean energy production. They will also charge residents for the power they use, even though it costs them (the utility company) nothing to produce once they’ve constructed the project and delivery method. The majority of most utility companies currently produce power from fossil fuel derivatives.

A distributed solar model - even in snowy weather the sun still shines and the panels will collect much needed energy.

On the other hand, one not favored by utility companies and thus by extension Big Oil, small business owners such as solar installation contractors favor a “distributed model”. This model would place in the hands of each individual homeowner the control to or not, to purchase a solar system from and have them installed by a licensed solar contractor. This method would in fact generate the least amount of money for the utility companies and Big Oil.

From these two methods stems all of the politicking. So let me make my case for why the “distributed method” should win the argument and how it is by far the better for homeowners:

If the U.S. could fix its trade policies with China (not an easy task) then there is an opportunity for every American homeowner and solar installation business, and even the U.S. in general to benefit. China can deliver to the U.S. solar panels for approximately $1 per watt (cpw). Any other necessary materials ie; inverters, rails, wiring, etc., may at most come to $1.25 cpw (probably for much less than this).  A typical installation by a licensed contractor is approximately $1.75 cpw. The grand total of which is: $4.00 cpw at most.

Let’s assume a 5Kw system (5000). Using the above sized home of 2500 sq. ft., this system would easily produce enough electricity during the day to where you would have enough to last the night as well. Although roof-space may be an issue in this setup. But let’s assume ample spacing. This system would basically cost the homeowner $20,000. Let’s also assume that since we (policy-makers) have ironed out the politics and therefore, the 30% federal tax-credit is back in place. This means the net-cost of the system is $14,000. If this was financed at 7% of 60-months your payments would be roughly $277 per month for 5-years. But the good news is that since your producing way more energy than you consume (done by doubling the required system size), you will most likely never have another electric bill. Can you see how the $277 per month basically offsets your current electric bill…

Let’s fast-forward the clock 5-years… you’ve finished your payments and now never have to pay an electric bill again. With today’s rising cost of energy (fossil fuel method) you can either continue to live in the home without paying for electricity anymore or, you can sell the home at a presumed premium to the next person who also will not have to pay an electric bill.

Now this is all a very rudimentary way of figuring this out but, the bottom line is the cost for solar has come way down to that less than the cost for an automobile with some obvious benefits. For example, your system’s value will increase over time whereas your car will not. Also, by choosing a “distributed method” you will not be forced to pay the utility companies for that which you are not using, ie; the “centralized method” we all pay for every body else’s power too, kind of like insurance. Haven’t we had enough of paying for use from others, what we don’t use…

These are the basic differences between the two political positions; one puts all the power in your hands, the other keeps the power in the hands of the utilities and Big Oil. In which one do you think you will come out ahead.

Here’s something to think about… why do Californians pay the highest price for gasoline? Could it be that they give the least amount of money to utility companies and Big Oil…

Whatever the answer, I think the Sunshine State should be taking full advantage of its most prominent resource – the Sun. Nuclear… you’ve got to be kidding me!