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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Don Lloyd who wrote (102864)5/17/2001 5:24:50 PM
From: yard_man  Read Replies (1) of 436258
 
pretty good on some points, but ... way off on a couple

>>Q3. Why is the price of the energy saved too low?

A3. Directly or indirectly, the price is controlled or capped by politicians or regulators responding to media-generated protests or the threat of same, as well as trying to buy votes and collect campaign contributions.<<

Q. How are rates set in most jurisdictions?

A. in most states rates are still set on a ROR basis -- that's essentially cost-plus ratemaking.

Q. Are rates artificially low and if so, by how much?

A. Rates are not artificially low (average rates) -- but even if one accepted that premise -- no reasonable argument can be made that they are too low by 4 - 5x (i.e. what is would take to make photovolataics competitive for widespread application to residential customers.)

>>
Q4. Why is the price of the panel too high?

A4. In part because of A3. The artificially low price of the energy to be saved limits the market demand for the panels, which in turn keeps their costs high in part due to low and inefficient manufacturing volumes
<<

A4 is simply a non-sequitor -- the price of energy does not keep the manufacturing cost of solar panels high -- separate issue altogether. Would be manufacturers can calculate the reduction in costs stemming from spreading the fixed costs over larger and larger volumes. Either 1) there isn't the demand or 2) even considering the expected reduced per-unit cost solar cells still aren't competitive with grid supplied power ...
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