Solar Subsidies [RE-wrenches]

[Jeff Yago]

The last thing we need is a nationally subsidized solar industry.  We are
about to repeat everything that was done wrong to promote the solar thermal
industry back in the late 1970's and early 1980's.

Back then, with every announcement of a new state or federal grant, the
solar thermal industry raised their prices on the grounds that they had been
too low for years to make a fair profit.

With the announcement of every new state and federal income tax credit and
county property tax credits, more "customers" entered the market who would
buy anything at any price (the higher the better) since it would give a
higher tax credit.  These systems were not metered and had 100% backup so
most systems failed and nobody noticed since the water was still hot!  After
all, it worked long enough for them to receive their tax credit.  Systems
were being sold with $3,000 "commissions" to boiler room phone bank
salesmen, resulting in many $6,000 hot water heaters that could never
payback their costs, and were installed by "lowest bidder" and poorly
trained no name contract  crews.

The only thing I think will work is requiring the utilities to separately
meter and buy back solar pv at their avoided costs.  Any system that stops
working or was priced too high for what it generates cannot hide from the
utility meter and related customer monthly billing.

The avoided costs are much higher than utility base rates and these much
higher rates will help make the pv systems more cost effective.  Of course
the utilities will pass these "losses" of revenue on to their other
customers, but they do the same now for "stranded costs" and other costs due
to poor decisions they have made.

Since tax credits based on system costs are not used, you have less
incentive to purchase overpriced systems, and since system install cost
averages for a given area would soon find the right "sweet spot" price per
installed kWh based on the buy back rates for that area, the public would
benefit from those installers providing the most kWh for the dollar.  Poor
quality installations and over-pricing would be policed by the billing
meter.

Grants of dollars per kw manufactured and paid directly to the manufacturer
does not avoid the problem of paying the same for both a quality product and
an inferior one.  Manufacturer subsidies also do not help avoid homeowner
systems having the lower priced modules failing due to poor installation or
BAS problems later.

So what say yea?

Jeff Yago

- - - -
To send a message: RE-wrenches at topica.com

Archive of previous messages: http://www.topica.com/lists/RE-wrenches/

List rules & etiquette: http://www.mrsharkey.com/wrenches/etiquete.htm

Check out participant bios: www.mrsharkey.com/wrenches/index.html

Hosted by Home Power magazine

Moderator: michael.welch at homepower.com

==^================================================================
This email was sent to: michael.welch at homepower.com

EASY UNSUBSCRIBE click here: http://topica.com/u/?bz8Qcs.bz9JC9.bWljaGFl
Or send an email to: RE-wrenches-unsubscribe at topica.com

T O P I C A -- Register now to manage your mail!
http://www.topica.com/partner/tag02/register
==^================================================================