Homepower as a money pit
Ivan Seeking said:
hitssquad said:
the world's leading homepower evangelism site says that it is impossible to make money with homepower.
Could you provide a specific quote and link to what you just said?
The Homepower Magazine site has a Rogues Gallery of 26 Guerrilla Solar activist profiles. These sometimes feature statements about not being able to make money doing homepower and that homepower should instead be done because it is a just cause.
http://www.homepower.com/magazine/guerrilla.cfm
From Profile 1:
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Since we first fired up this system on April 10, 1998, we have put 208,827 watt-hours of solar-made electricity into the utility grid. At our utility rate, that means only about $20 towards paying for the system. So we can’t justify this project based solely on economics.
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From Profile 2:
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Short term costs suggest that green energy is less economic than the brown stuff. The reality is that today's brown energy "profits" come at the cost of tomorrow's generations.
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From Profile 15:
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Our main objective in using this system is to reduce our ecological footprint.
[...]
We will never see a financial payback on this investment.
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From Profile 20:
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What have I learned from my experimentation? I’ve learned that it is more cost effective to save electricity than it is to generate it.
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From Profile 25:
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The system components were very expensive. On the other hand, it’s my hobby, and it makes me happy.
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Also please see:
http://www.aspencore.org/Solar_Power/solar_power.html
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It's Not Cost-Effective[/color]
Gag me with a spoon. If I heard it once, I heard it a dozen times, "What's the payback?" I heard it from an architect, a rancher, an engineer, and an electrical inspector. Dividing my system's price by it's production gave my brother in law his bottom line: "It's not earning its keep."
[...]
Buying a grid connected PV system is folly. Why pay 25 cents a kWh for solar power when you can buy coal power for 7? Are you brain dead, a moon rock? PV is cost-effective for cannabis growers, dirt-poor Haitians, Soviet cosmonauts, Everest climbers, Indonesian peasants, and the Mars Rover. As for the rest of you, forget it.
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Kenneth Adelman's 30.5kw (from 36.7kw of solar panels) system...
http://www.solarwarrior.com
...cost $360,000.
http://66.102.7.104/search?q=cache:...e/2004/06/03/solar/+Adelman+salon+solar&hl=en
http://66.102.7.104/search?q=cache:...3/solar/index1.html+Adelman+salon+solar&hl=en
http://66.102.7.104/search?q=cache:...alon+"fight+for+your+right+to+go+solar"&hl=en
http://66.102.7.104/search?q=cache:...alon+"fight+for+your+right+to+go+solar"&hl=en
I estimate that it produces an average of 3,000 kwh per month. That works out to an up front cost of $120 per installed kwh/month. The opportunity cost of that $360,000 over 30 years at a 5% discount rate and daily compounding is $1,253,242.33. Dividing that by 1,080,000 kwh produced over 30 years gives us a cost of $1.16 per kwh just for the interest alone.
You can see the Adelman's homepower system from space with Google Earth. The exact location of the array is 36
o59'56.28"
N, 121
o47'05.61"
W.