Thursday, November 8, 2018

Wind n Sun are now cheaper/better than Coal, NatGas, etc

By now you probably knew it was happening, but you probably didn't realize how much and how fast. If you figure subsidies, Solar and Wind are a slam-dunk powerful option.
Wind prices have been dropping fast and solar has been dripping like lead... Solar prices have dropped about 86% over the last 8 years.
Check out the latest 2018 report by Lazard. Note that they also analyze renewables with storage (batteries).
The Solar incentives make the solar option for most settings (especially in Sunny Florida) crazy profitable. For example, the investment of $100 for a rather serious system (much more than a home residence would need) would have a tax credit of 30%, plus 100% depreciation in the first year. So, if you had a 20% tax rate, your investment would look like this:
$100k Investment
-30k Tax Credit
-20k Depreciation
=50k Net investment. (Thant's only 50% of the original investment.)

Payback would be less than 8 years, maybe 5.
The power company has historically increased prices by 3% (or more in Florida)... Not a problem if you are producing your own power.

Return on investment would probably be 20% or greater after 20 years.
Solar in sunny places like Florida is a pretty good investment; but with the tax benefits solar is a crazy profitable investment. Plus you are saving lots of other resources including water and carbon dioxide.
We're working on a few calculators. Solar and Renewable Energy. This is a positive investment that keeps on giving.

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