Tuesday, November 27, 2012

Subsidies, HUH, Good God Ya'll... What are they good for?

Edwin Starr
Here's a quote from an article I've just read.
I actually did my homework on the subject more than three years ago and chose a 27-panel (3.9 kilowatt) system for my home in the Ojai Valley.
The total upfront cost was $31,000. I reaped $7,500 in federal tax credit with another Southern California Edison $7,500 rebate in the first year. That left me with a total cost of $16,000 installed.
The math... $16,000 after subsidies for a 3.9 kW system works out to about $4/Watt. The Australians, Germans, Flemish, Brits and Italians are currently paying $2 to $3/Watt for unsubsidized photoelectric systems. If Michael from Ojai was willing to pay $4/Watt for a system you'd have to think he would certainly buy again at $2 to $3/Watt. I'd argue that he'd be even prouder of his system for having bought it himself without the aid of Uncle Sam.
The subsidies that Michael took advantage of were training wheel mechanisms that are no longer necessary. The investment has been made and it's paid off. The first movers took the subsidies and the risks of investing in a new technology. The new technology is now a strapping young lad who is ready to go out into the world and prove himself. The First War is won... The Second is coming.

The NFL refs and TRON guys ain't got shit on Edwin.

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