subject: Busting Solar Energy Myths - It's Too Expensive! [print this page] The price of production of solar energy components is rapidly getting increasingly less expensive, but yet the cost to install a residential solar energy system still appears to be prohibitive - or is it?
Smoke and Mirrors
The U.S. government has historically provided subsidies to traditional (i.e. mature) energy sources such as coal and nuclear power. The subsidies provided to renewable sources are about 100 times less, thus making it seem much more expensive than; in fact, it is actually, when compared to the sources mentioned above. A serious case of behind-the-scenes smoke and mirrors.
Will Your Utility Bill Get Cheaper?
The short answer is a resounding "No". As the supply of traditional fossil fuels decreases, so the expense of accessing those fuels increases, and those increased costs are then forwarded to you, the consumer. This situation will only get worse, and the costs will continue to escalate. Since 1970, utility rates have increased annually typically 5.5%. Not just that, but paying your utility bill will never give you any equity. It's more like a variable interest rate loan that can never be paid off and whose rate continually increases.
Hidden Costs of Traditional Electricity Sources
The federal subsidies make traditional electricity sources look like a whole lot. But, what about the intangible costs, or the costs not readily apparent? Did you know the expense of these subsidies is taught in income the government garners from your income taxes? Other hidden costs include increased pollution, damage to the environment and natural habitats, increased health care costs due to effects of the increased pollution, etc.
If all these hidden costs are considered, renewable energy begins to become a much more attractive proposition.
States can provide relief
A growing number of states are answering the call to increase their presence in the solar energy field by providing substantial rebates for new installations. California is just about the leading lights in this region, with the California Solar Initiative providing rebates according to the expected performance of any new solar installation. These rebates greatly assist to leveling the energy playing field.
Hidden Benefits of Solar Energy
While certain benefits of installing a solar electric system may be obvious (reduced, or eliminated, electricity bill; environmental benefits), others will not be so obvious. For example, are you aware that having a solar electric system installed on your home may well increase the equity value of that home? This alone could cover the expense of installing a system, if you ever need to sell your home.
Even though awareness of the problems caused by carbon emissions and the dangers presented by global warming is increasing, adoption of solar and renewable energies is taking place slower than is desirable. The cause is generally attributed to myths and misinformation regarding renewable energy and solar energy in particular, the primary myth being that solar is far too expensive. Hopefully, the facts presented here will lay that myth to rest and open the door to wider acceptance of and investment in solar and renewable energy.
