Another article in the September 17, 2012 issue of Chemical Engineering News
by Melody Bomgardner covers increased production of electricity by photovoltaic
(solar) systems in the US.
A report by GTM Research and the Solar Energy Industries Association indicates that utilities increased solar energy production by 147 MW from last year's second quarter. Simultaneously, the solar energy residential production market remained flat and the commercial production market shrank 33% from the first quarter. The article also mentions that previous solar energy giants Germany and Italy have seen installations plunge because of lower government incentives.
Separately, Four Peaks Technologies of Scottsdale, Arizona, shows a present electricity production cost from coal at 8.0 cents per kilowatt hour, while solar energy production cost is 15.0 cents per kilowatt hour (http://solarcellcentral.com/cost_page.html).
From another source, the average price for electricity to residential consumers from all sources is 11.6 cents per kilowatt hour. Commercial and industrial prices are lower.
Therefore, we must conclude that the only reason for the utility increase in solar electricity production is because of government subsidies, which obviously cannot continue in the long run. Apparently, Italy and Germany have already found the deadline for their subsidies to be now.
A report by GTM Research and the Solar Energy Industries Association indicates that utilities increased solar energy production by 147 MW from last year's second quarter. Simultaneously, the solar energy residential production market remained flat and the commercial production market shrank 33% from the first quarter. The article also mentions that previous solar energy giants Germany and Italy have seen installations plunge because of lower government incentives.
Separately, Four Peaks Technologies of Scottsdale, Arizona, shows a present electricity production cost from coal at 8.0 cents per kilowatt hour, while solar energy production cost is 15.0 cents per kilowatt hour (http://solarcellcentral.com/cost_page.html).
From another source, the average price for electricity to residential consumers from all sources is 11.6 cents per kilowatt hour. Commercial and industrial prices are lower.
Therefore, we must conclude that the only reason for the utility increase in solar electricity production is because of government subsidies, which obviously cannot continue in the long run. Apparently, Italy and Germany have already found the deadline for their subsidies to be now.
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ReplyDelete15 cents per Kwh, is less than half of what it was just a few years ago. At that rate of decreasing cost, solar will quickly become cheaper than coal or gas.
Deleteinteresting info.: http://en.wikipedia.org/wiki/Cost_of_electricity_by_source
I’m thinking that solar voltaic is worth pursuing, as it has the potential for the least collateral cost and damage, and would also be the safest from a national security standpoint. If every building, commercial and residential, had its own power source, we would greatly reduce the risk of crippling attacks on our power grid system. Recently, Lubbock was rendered completely vulnerable to attack when one simple power transformer exploded in the middle of the night.
The problem with this approach is that there is very little incentive for power companies to pursue this route, as it would strip them of power and control and an ongoing flow of revenue. The economics would be fragmented to the producers of solar panels and equipment (and batteries or other storage units) and to all the local installers and maintainers of such systems.
There is WAY more than readily meets the eye on all of this
True. I would like the private utilities to invest their money in the development, rather than have the government use my taxpayer money."
DeleteFrom Anonymous Dave:
ReplyDeleteRight. The government has no business in the energy business, unless it is regulating monopolies or a matter of national security.
But I fear it is only graft and payola
From Anonymous CJ:
ReplyDelete"An important part of the problem is that solar energy is most available in remote parts of the country. They are called deserts. The idea that roof panels would be economical compared to coal or gas is a fantasy. At the moment, the federal subsidies on solar panels are supporting Chinese manufacturers. But then, Sec'y Chu is not known for his understanding of economics".
What is the problem with roof panels to make them a fantasy?
ReplyDelete