More on solar power

Ever since I saw how the power added efficiency of the power plant that largely fueled my alma mater was about 60% versus the ordinary 30% or so, and ever since I learned that 10-20% of electrical power is lost in transmission, I've been something of a fan of distributed power generation.  If a building complex has a large boiler for heating and hot water, why not get some extra out of hiring the boiler operator and get some electricity out of the deal as well?

Plus, if you have distributed transmission, it's less likely that a squirrel falling into a transformer in Quebec will bring your whole grid down.

Now with solar, it's a bit more complicated, as the estimated 25 year life of solar installations is, to put it mildly, very optimistic.  Double the price and half the lifetime is closer to the truth, if de-installations are any indication.

And along those lines, I found this interesting article about how solar power might pay for itself--or not, as is the case.  More or less, they estimate an initial cost of $25000, or $15000 after subsidies, and that you'll save about $1500 per year in electrical costs.  So you'll pay for it in ten years, right?

Well, no, because of course, the real price is $25000, and you'll be paying for the difference through your taxes, of course, so the real payoff time is about 17 years, right?  

Wrong again, because you forgot about the reality that you're going to be paying, say, 5% on the money (or foregoing gains on it) you spent to buy it, or about $1250 annually.  Payoff time; about 37 years, 12 years past the rated life of the solar panels, and about three times the realistic life, and that in optimal situations.

Now the arithmetic would change somewhat if utilities charged different rates for base and peak load (the latter is 50% more expensive or more as a rule), but the long and short of it is that, as usual, our government is throwing good money after bad with solar subsidies.