The article states that “solar energy is already far, far, cheaper than utility energy.”

The article goes on to provide examples showing that solar is up to 87% cheaper than electricity for a large house.

That is JUST NOT TRUE. The errors are numerous. Here are the most egregious:

ERROR #1: In the calculations you never include the 25 years worth of monthly payments that you have to make to the PPA company. In other words, you omitted 300 monthly payments from your comparison !

ERROR #2: You ignored the time value of money in your calculations. This is an enormous error, especially for a period as long as 25 years.

ERROR #3: Electricity price inflation is no where near the 6.7% number that you use. Look at the following government data and you will see that there has been modest inflation since the 1980’s. http://www.eia.doe.gov/cneaf/electricity/page/fact_sheets/retailprice.html

ERROR #4: The company states that you have to buy all the electricity the system produces — (whether you need it or not). Batteries, if feasible, are presumably extra. How was this factored in?

ERROR #5: You have a 25 year obligation to buy all the electricity the system produces, as does anyone who buys your house (unless you “buyout” the company – at an unstated price). If you want to move, you have a big problem. How was this factored in your calculations?

Don’t we all have an obligation to at least do the math correctly and not mislead people?

Mark Pitts

The article states that “solar energy is already far, far, cheaper than utility energy.”

The article goes on to provide examples showing that solar is up to 87% cheaper than electricity for a large house.

That is JUST NOT TRUE. The errors are numerous. Here are the most egregious:

ERROR #1: In the calculations you never include the 25 years worth of monthly payments that you have to make to the PPA company. In other words, you omitted 300 monthly payments from your comparison !

ERROR #2: You ignored the time value of money in your calculations. This is an enormous error, especially for a period as long as 25 years.

ERROR #3: Electricity price inflation is no where near the 6.7% number that you use. Look at the following government data and you will see that there has been modest inflation since the 1980’s. http://www.eia.doe.gov/cneaf/electricity/page/fact_sheets/retailprice.html

ERROR #4: The company states that you have to buy all the electricity the system produces — (whether you need it or not). Batteries, if feasible, are presumably extra. How was this factored in?

ERROR #5: You have a 25 year obligation to buy all the electricity the system produces, as does anyone who buys your house (unless you “buyout” the company – at an unstated price). If you want to move, you have a big problem. How was this factored in your calculations?

Don’t we all have an obligation to at least do the math correctly and not mislead people?

Mark Pitts

SHAME ON YOU!

The CleanTechnica ad is the worst kind of misleading advertising.

[SK This is an editorial]

If you were on Wall Street, people would be clamoring to have you put in jail for that kind of advertising, and rightly so.

You mention, but totally ignore, interest in your calculations. And then build in an inflation rate that is totally ridiculous in this economic environment.

[SK: ?? I include interest paid for a solar loan. The inflation rate for electricity prices is a matter of public record. In CA its been 6.7% since 1970s for example. Ridiculous, but true.]

It is totally deceptive to say the time value of money clouds the issue because one is always going to have to pay for energy. You also ARE going to have to pay interest, or FOREGO the interest you could have earned.

[??? Cite mentions of time value of money. Getting free solar once panels are paid off means you then get free energy. “forgo interest you could have earned”… what??.]

It clouds the issue only because it deceases your sales.

I hope you are not one of the people excoriating the prime-loan brokers. You have become one of them!

SHAME ON YOU!

Mark

SHAME ON YOU!

The CleanTechnica ad is the worst kind of misleading advertising.

[SK This is an editorial]

If you were on Wall Street, people would be clamoring to have you put in jail for that kind of advertising, and rightly so.

You mention, but totally ignore, interest in your calculations. And then build in an inflation rate that is totally ridiculous in this economic environment.

[SK: ?? I include interest paid for a solar loan. The inflation rate for electricity prices is a matter of public record. In CA its been 6.7% since 1970s for example. Ridiculous, but true.]

It is totally deceptive to say the time value of money clouds the issue because one is always going to have to pay for energy. You also ARE going to have to pay interest, or FOREGO the interest you could have earned.

[??? Cite mentions of time value of money. Getting free solar once panels are paid off means you then get free energy. “forgo interest you could have earned”… what??.]

It clouds the issue only because it deceases your sales.

I hope you are not one of the people excoriating the prime-loan brokers. You have become one of them!

SHAME ON YOU!

Mark

Real Goods, one of our oldest companies in the Bay Area, has installs from the 70’s in Humboldt County still producing energy.

Solar does lose efficiency at about a half percent a year, that’s why the warranty is typically for 25 years, but it will continue to work, but at a lower efficiency (which you could recoup by adding a panel!)

Here’s a link:

http://scitizen.com/stories/future-energies/2009/08/How-long-do-solar-panels-last/

Real Goods, one of our oldest companies in the Bay Area, has installs from the 70’s in Humboldt County still producing energy.

Solar does lose efficiency at about a half percent a year, that’s why the warranty is typically for 25 years, but it will continue to work, but at a lower efficiency (which you could recoup by adding a panel!)

Here’s a link:

http://scitizen.com/stories/future-energies/2009/08/How-long-do-solar-panels-last/

Susan ;

Please supply links to demonstrate that .

Susan ;

Please supply links to demonstrate that .

Susan ;

Please supply links to demonstrate that .

Susan ;

Please supply links to demonstrate that .

The new owner would keep likely prefer paying for the cheaper solar electricity, but optionally: the first owner can also buy out the system and take it with them.

(Luckiest new owner would be the one buying at year 24: solar arrays already last about 40 years! So they would be buying a house with no electricity bills at all!)

The new owner would keep likely prefer paying for the cheaper solar electricity, but optionally: the first owner can also buy out the system and take it with them.

(Luckiest new owner would be the one buying at year 24: solar arrays already last about 40 years! So they would be buying a house with no electricity bills at all!)

The new owner would keep likely prefer paying for the cheaper solar electricity, but optionally: the first owner can also buy out the system and take it with them.

(Luckiest new owner would be the one buying at year 24: solar arrays already last about 40 years! So they would be buying a house with no electricity bills at all!)

The new owner would keep likely prefer paying for the cheaper solar electricity, but optionally: the first owner can also buy out the system and take it with them.

(Luckiest new owner would be the one buying at year 24: solar arrays already last about 40 years! So they would be buying a house with no electricity bills at all!)

The new owner would keep likely prefer paying for the cheaper solar electricity, but optionally: the first owner can also buy out the system and take it with them.

(Luckiest new owner would be the one buying at year 24: solar arrays already last about 40 years! So they would be buying a house with no electricity bills at all!)

http://www.scientificamerican.com/article.cfm?id=22-billion-ipo-for-china-wind-power-2009-12

and has overtaken the US in leading solar co. Also virtually every building has solar thermal.

We should be more afraid of falling behind, by not lifting a finger to help them develop more renewable energy:

http://cleantechnica.com/2009/12/09/developing-world-assistance-likely-to-bring-100-billion-boom-to-renewable-sector/

Does it is possible for you to send us a PPA draft?

Regards,

Alfredo Rehbein

Does it is possible for you to send us a PPA draft?

Regards,

Alfredo Rehbein