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Title: Rooftop solar is now cheaper than the grid in 42 American cities
Source:
Utility Dive
URL Source: http://www.utilitydive.com/news/roo ... -in-42-american-cities/352799/
Published: Jan 14, 2015
Author: Herman K. Trabish
Post Date: 2015-01-26 11:05:24 by Willie Green
Keywords: electricity, solar
Views: 2745
Comments: 6
New numbers show solar-generated electricity is ready for head-on competition with utility-delivered electricity. Nearly 21 million single-family homeowners in 42 of the 50 biggest U.S. cities can now expect to pay less for electricity from solar than for electricity they buy from their utility. In fact, the numbers show money spent on a residential solar system earns a better return than investing in Standard and Poor’s 500 index fund. “Solar is now not just an option for the rich, but a real opportunity for anyone looking to take greater control over their monthly utility bills and make a long-term, relatively low-risk investment,” explains "Going Solar in America: Ranking Solar’s Value to Consumers in America’s Largest Cities," a new study from the North Carolina Clean Energy Technology Center. To breach the “clear information gap” between the popular presumption that solar energy is an expensive indulgence and the new reality that it is a competitively priced source of electricity, the paper uses a range of National Renewable Energy Laboratory (NREL) System Advisor Model (SAM) parameters and other factors to calculate rankings. The list for the top 50 solar cities was based on: “We decided to use first year savings because NREL research shows customers tend to be more responsive to something that gives them greater benefits more quickly,” explained Senior Policy Analyst and report co-author Jim Kennerly. Solar’s NPV was calculated for a 5 kilowatt system purchased with a 25-year, 5% loan and compared to an S&P 500 index with assumed SAM default parameters of a 6.61% annualized and dividend reinvested discount rate. It assumed a 2.7% inflation rate. Kilowatt-hours from that same system now cost less than those from a residential customer’s local utility. “Of the single-family homeowners in America’s 50 largest cities,” according to the report, “9.1 million already live in a city where solar costs less than their current utility [retail] rates if they bought a PV system outright – and nearly 21 million (93% of all estimated single-family homeowners [that are customers of the utilities that serve] those cities) do if low-cost financing is available.” Poster Comment: Another reason we don't need Keystone XL, fracking and dirty coal.
Escalating utility rates lose out to solar’s fixed price
The information gap
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#2. To: Willie Green (#0)
Interesting! Willie, what is the average life span of a solar system? Once installed, what is the first component most likely to need to be replaced? I realize there is not likely one size fits all system. Just curious what the weakest link is in such a system. I live in a rural area, but like the idea of a system off the grid, a one time investment, and then go xxx years and no bills! Also would be nice to not have to worry about downed lines, broke poles, blown out transformers, power generator malfunctions, etc. Thanks for the reply in advance! Much appreciated!
#4. To: Stoner (#2)
Batteries, batteries and more batteries. The batteries need semi annual work, the generator needs annual work, the solar panels need to be checked after every big storm like the one coming your way tonight. In Maine there is no way solar is going to save you anything.
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Replies to Comment # 2. Willie, what is the average life span of a solar system? Once installed, what is the first component most likely to need to be replaced? I realize there is not likely one size fits all system. Just curious what the weakest link is in such a system.
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