Pay back period in Colorado

[jonny solar]

I have a quote for a 7.2 kW system that initially costs 23.5K but will pay back the initial investment in 6.5 years due to offset electricity costs, federal tax incentives, and Renewable Energy Credit payments. This sounds like a great deal to me. Am I missing something here?

[Sunking]

Yeah likely so because electricity cost are expected to go down, and are you paying cash or taking a loan.

[jonny solar]

Cash

[jonny solar]

Do you mean that the price / kWh is projected to go down, or that energy consumption by the user is projected to go down (due to increased efficiency appliances, etc.)

[Naptown]

Yeah likely so because electricity cost are expected to go down, and are you paying cash or taking a loan.

Perhaps in some places. My local utility is looking at another rate increase.
I don't see long term prices falling by much. True Natural gas is cheap right now but the producers are already starting to throttle back that supply to support prices. I also don't see much going on in the building of base load plants.

[Sunking]

I don't see long term prices falling by much. True Natural gas is cheap right now but the producers are already starting to throttle back that supply to support prices.

That is because the Employment Prevention Agency and POTUS Obama administration has his (their) Boot On Utilities Throat To STOP ENERGY PRODUCTION, artificially inflate energy prices, and crush the economy. . . to his liking.

America must be punished.

[Naptown]

That is because the Employment Prevention Agency and POTUS Obama administration has his (their) Boot On Utilities Throat To STOP ENERGY PRODUCTION, artificially inflate energy prices, and crush the economy. . . to his liking.

America must be punished.

Methinks it is primarily due to the NIMBY attitude of most people and less to do with energy policy.

[bonaire]

Elec. prices in SE PA by PECO went down .01/kWh this year. But who knows what it will be in 10 years? That's at least two administrations in the future. Price seems reasonable - however, what is your kWh price now? Isn't Colorado a pretty cheap power state? CO also has a pretty good incentive for electric vehicles - so if you "fuel at home" with a solar array, you can perhaps lease a Nissan Leaf (appx. $199/mo now) and save on gasoline prices which I really don't see going down long-term.

6-year ROI - is that with selling SRECs to the state commission? That went south here in the N.E. (NJ/PA/MD) over the last two years where people really get nothing here now for their SRECs that they were sold on back in 2010.

[jonny solar]

Current rate in CO is about 14 cents / kWh. 6.5 year payback of initial investment includes REC payments which are payed back over 10 years.

Thanks for the responses, I feel this is a good deal plus major environmental offsets.

[Naptown]

Elec. prices in SE PA by PECO went down .01/kWh this year. But who knows what it will be in 10 years? That's at least two administrations in the future. Price seems reasonable - however, what is your kWh price now? Isn't Colorado a pretty cheap power state? CO also has a pretty good incentive for electric vehicles - so if you "fuel at home" with a solar array, you can perhaps lease a Nissan Leaf (appx. $199/mo now) and save on gasoline prices which I really don't see going down long-term.

6-year ROI - is that with selling SRECs to the state commission? That went south here in the N.E. (NJ/PA/MD) over the last two years where people really get nothing here now for their SRECs that they were sold on back in 2010.

Maryland spot market prices are still around $135

[bonaire]

I heard a story today about Morgan Stanley in NJ which set up a size able array on their premises a couple years ago. SRECs were about 600 at the time but they locked in a 15 year rate of 400 per SRECs then. Some people thought they were dumb going with a lower but longer term lock in. Looks brilliant with todays 175 SRECs in NJ. Pa still at 9 per SREC.

[russ]

plus major environmental offsets.

Pardon? What major environmental offset?

[russ]

That is because the Employment Prevention Agency and POTUS Obama administration has his (their) Boot On Utilities Throat To STOP ENERGY PRODUCTION, artificially inflate energy prices, and crush the economy. . . to his liking.

America must be punished.

I believe it is more just that he has zero understanding about power generation - same as for so, so many things. Then he gets on his high horse and goes charging across the hillside looking for windmills.

[bonaire]

We could just do what Japan did and shut all the Nuke plants down.

[russ]

They are restarting them last I read.