Solar Energy Costs & Economics
As an interesting fact on solar, I had a quote done for my house in Florida for a 2.5kw array (not enough to power the whole house, about 1/3 of the average requirement). The cost benefit worked out as follows:
Cost to purchase and install: $25,000 – this yielded a return of less than 1% on investment (about 0.7%)
Federal tax credit of $7,500
State rebate of about $9,600
Yield after subsidies (if qualified) – a total net cost of $7,900 with a return on my investment of just over 6%.
In other words the state and federal governments (taxpayers) would pay $17,100 in subsidies to support an overall yield on the total investment (theirs and mine) of 0.7%.
Every scrap of the product installed is of foreign manufacture sending the bulk of the taxpayer money overseas.
As a business person, if my company invested in 0.7% return projects, I would be out of business. I wonder if that applies to the Feds and States?
John in Maryland, USA
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