Search the Site

Posts Tagged ‘Solar energy’

Summer Solar Power

The City of Austin has given us a windfall:  As of October 1, it will pay 12.8 cents per kilowatt-hour for power generated by our new solar system instead of the previous 3 cents/kwh.  Of course, this seems fairer to me—but it also reflects more closely the value of the power we generate for the grid.  Demand varies over the day and season, and the city prices higher when more power is used (in summers, mostly for air conditioning)—it engages in peak-load pricing, a form of price discrimination.  Supply is limited by capacity, and in some cases in summer the capacity constraint is reached.  The power we produce is storable, presumably for release during the peak times when its opportunity cost is highest.  Thus the increased price paid to us reflects the value of what we generate.  Regrettably, my joy at this windfall is tempered by the simultaneous substantially increased price when we must purchase power because our system fails to generate enough for our needs!



Solar Subsidies

We are installing over 30 solar panels on our roof. The City of Austin currently offers a rebate up to $15,000 of 60 percent of the cost, and the federal government gives a 30 percent credit on the remainder.  With those subsidies the rate of return on our own investment is 17 percent, making this is a superb deal for us.

A neighbor in the Netherlands has 4 solar panels on his roof, a strangely small number.  I asked why.  His answer:  The Dutch government pays up to €1500 if you install a solar installation.  Each solar panel costs him €450, with a fixed cost of about €200 for the installation. Thus his average rate of return on his 4 panels is about 25 percent, a great investment. 



The Prius Driver’s Conundrum

For a singularly grim, if fiercely literary, assessment of the earth’s environmental fate, the grizzled wisdom of Cormac McCarthy is always there to deliver the dark pronouncement that we’re flat-out doomed. “The way of the world is to bloom and to flower and die,” explains the judge in McCarthy’s masterpiece, Blood Meridian. “[B]ut in the affairs of men there is no waning and the noon of his expression signals the onset of night.” Darkness, in essence, will fall at the very moment when we think we’re out-of-our-mind brilliant. 

Brilliance in conventional environmentalism has thus far been embodied by the caricature of hybrid-driving solar evangelists with soft spots for local farms, grass-fed beef, and re-useable shopping bags adorned with inscriptions of ecological virtue. Such popular solutions to our environmental quandary come not only with the eager endorsement of a progressive political establishment, but with the added appeal of basic pragmatism. Drive a more fuel-efficient car, eat locally, seek energy-efficient light fixtures, and vote “yes!” for public transit initiatives — such ideas simply make sense. And thus they’ve become the nuts-and-bolts of modern environmentalism.