ccerenz2

Has Solar Demand Finally Hit Bottom?

On Feb 11 09:58 AM rdasher wrote:

> As I recall he ROI on solar is something like 25 years... so it takes
> 25 years to get back the cost of electricity saved on your investment
> in solar... just in time to have to replace your solar, since it
> just died.

For the first 464 Kwh of electricity used in my home, I pay 13.3 cents per kwh. For anything above that, the rate jumps to 30 cents per kwh for the next 250 and 32 cents for anything above that. In addition I pay 2 cents in taxes per kwh. I'm taking these rates right off my bill. My expectation is, these rates will increase over time.

I keep hearing that solar hasn't reached grid parity. That may be true at the utility level but at the consumer level it has. In addition, some of the cities are developing financing packages for the homeowner/business to buy a solar install and pay it off through the property tax bill. Berkeley, Solana Beach, San Diego, Encinitas are some. Once they prove a successful model, my opinion is that the other cities will adopt it.
So now, what does a person have in my region?...A way to 'FIX' energy costs for the next 25 years, available funding, a convenient payment method, the thought of knowing the electricity is being produced without pollution, increased energy independence for the home as well as the country, and a system with minimal maintenance.

The payoff period you note is reducing quickly with the increased rates being charged by the utilities. Now that the price of solar panels is falling again, it will again go lower. As our economy recovers, it seems that solar may be poised for an excellent rebound.

Solar Stocks Down on Spanish Subsidy Concerns

Bobaka
Why neglect to mention the Democrats tried to slip in a windfall profits tax with the extension of renewable energy credits? Of course and thankfully the Republicans blocked it.

Will Some Solar Companies Face a Cash Crunch?

Envoy,
This piece is an excellent example why bean counters don't run the world! (Of which I am one) It appears you avoid or miss the most critical point. Why are they cash flow negative? Because they have so much demand for their product that they are racing to build new capacity as quickly as possible. It's not because they are shipping dollars with each panel--it's because they are investing in themselves so they can make even more money tomorrow!
If they run out of financing sources, they will slow down their expansion plans. The only way this story ends badly is if someone builds a better product and renders them obsolete. Of course, this is a risk for every business in the world. Sorry Envoy, the world understands the solar story and it will be a long time before maturity is reached.
But please, continue writing these pieces so I can buy at even cheaper levels.