SOLAR ENERGY—THE GOOD, THE BAD, THE TOTAL HYPE

Anyone who has been awake for the past several years has at least heard of all the “Green” construction, jobs and such being promoted by the government. This has become a major fad in the construction and product industries so people feel obligated to comply whether or not they have a clue as to what is going on.

It should be noted that there is a “Green Party” in politics which is in essence (and admittedly) a self appointed Communist party. That essentially means that it and its members and followers are anti capitalist and essentially anti free enterprise and anti freedom.

The similarity between the “Green Party” and the “Green movement” in construction, products and other hype should be apparent but to most it is not. Following is a very good example based on an absolutely true situation that occurred recently:

As an architect specializing in the commercial area I have been exposed to people touting the laurels of solar energy for decades and to a much larger extent in recent years. In analyzing these systems, even including all of the various tax credits, “writeoffs” and the like the length of time it takes to do no more than amortize (have the savings pay for) the system’s cost far exceeds anything a normal astute business person would engage in as a business venture, much less spend his personal funds.
I talked recently to a solar energy company who touted that their system would pay for itself in six years. As a self employed business person that time frame starts to make a bit of sense so I asked for more information. Long story short, they came up with a proposal which included six solar panels at a price of a bit over $11,000 installed. At first this sounded pretty good if indeed the savings in my power bill would recoup the $11,000 investment in 6 years………

In the analysis and explanation, a significant tax credit (Federal) was discussed and we bemoaned the fact that our State tax credit has already been used up by other folks trying to do the same thing. In any case, the relative bottom line cost when the Federal tax credit came into play became something over $7,000 (a nice drop)….

Then the other shoe fell……The actual savings in our power bill was projected to be less than $21.00 per month or, $252 per year. Even without a calculator handy I could be quite sure that it would take more than 6 years to recoup the cost……(try 28 years).

Some of the conversation then turned to the possibility of the State having another tax credit which would help(?) AND factoring in depreciation to “massage” the bottom line to an even lower figure.
Lets now look at a few factors from the stage of reality:

1. Assuming that the savings in power bills was correct, the system would have to cost no more than $1,512.00 for the savings to pay for the system in 6 years.

2. If I took the original figure of $11,000 and invested it in anything (savings, T-bills, bonds, etc.) with a return of 2 ½ % or more I would make more money per year than I would save by having the system up, running and fully paid for.

So where does all this lead? It is really simple…..the whole energy conservation movement is pure hype promoted and backed by the mental giants running the Federal government and by the media they control. Granted, there are Federal grants, tax credits and the like as incentives which is why some companies and manufacturers are involved with this fiasco. In reality it requires our government to fund these systems in some way in order for them to make any kind of economic sense at all, even if that economic sense is superficial and totally false. Guess whose money the government uses to fund these grants and credits……..(This isn’t rocket science…..it’s OUR tax money!)

From my standpoint, even if I could get enough government credits, grants or anything else to fully pay for the system and its installation the hassle would not be worth the $21.00 per month savings. If I were to install a large enough system to cover my entire power bill the cost would likely be $176,000 (based on factoring the total number of panels required for the whole house with the original 6 panel quote). Of course there isn’t enough room for this sort of installation but it’s a nice math challenge. Given this information and if I could do it my savings would be somewhere in the neighborhood of $400 per month on average. It doesn’t take a PhD in mathematics to see that it would still take well over 30 years to recoup that investment.
We are getting sucked in to the black hole of total government control including the control of how or if we think…..Wake up people!

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