Saturday, November 16, 2013

Roof top solar is a scam

There is an argument in Arizona over solar power because the utilities are losing money due to a scam created by government subsidy on roof panels.  The latest shot fired in the new solar war is that solar power customers will be required to pay a monthly service fee.  It is currently set by regulators at $5.   This is far lower than the $50 fee the utility wanted but it is sure to cause problems because it establishes an additional fee for solar customers.   That will place a damper on the new solar panel fad.  This new action will not solve the problem, which is caused by government action in the first place.  The utility is forced to pay customers for electricity generated by their solar panels, sometimes at a rate higher than the utility supplies to the customer.  This electricity costs more than the electricity that the utility can generate on its own.  Why would the utility buy it?  They have no choice.  The utility must pay because power generated from solar is considered such a good idea that people prefer it over free market principles.  It is so preferable to some that they also offer a subsidy to have the panels installed on houses.   Where does the money come from?  From the government.  And the government has a great source of money.   All of us.   We the people pay for some select people to get a subsidized product for their personal use.  But better than that, this product generates electricity which we get to pay for because the utility passes on the cost of the specially generated, high cost electricity to all of us.  What a scam, and your friendly neighbors are not helping.  I can't blame them I guess, it is the American way to try to get a great deal.  Just remember that if solar panels were such a good idea then they wouldn't need subsidies.  People are buying them only because the government has skewed the market.  The utility is trying to fight back but they will lose because solar power is more important than principle.


Additional facts:
1. Those that buy solar panels are still dependent on the utility because the panels will not meet all of their needs.  For example, you could not run A/C and a washer and microwave at the same time off the panels.
2. Solar panels are less efficient at generating electricity than power plants.
3. Solar panels are not as "green" as you think.  While it is true that electricity is produced by photovoltaics without carbon dioxide emissions, it takes a lot of energy to create a solar panel in the first place.  This process uses fossil fuels and generates carbon dioxide (not that there is anything wrong with that).  Some estimates are that it takes 4 years in the sun for the total output to equal the energy put into making the cell.  Average cell life is 20 years.  

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