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Why Solar Installations Cost More in the U.S. than in Germany

technologyreview.com

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Re: Why Solar Installations Cost More in the U.S. than in Germany

#2
So, it sounds like most of the reason for the higher cost in the United States is that solar panels aren't a common sight - they have to be marketed more heavily to the end consumer, and power companies have to ensure that the system is safe to hook up to the grid.

Re: Why Solar Installations Cost More in the U.S. than in Germany

#3

So, it sounds like most of the reason for the higher cost in the United States is that solar panels aren't a common sight - they have to be marketed more heavily to the end consumer, and power companies have to ensure that the system is safe to hook up to the grid.

I got solar a while back, and the company seems desperate for customers. They call and want to throw parties for my friends at my house, ask for referrals, etc. I think part of the challenge is that solar here in the US is still a pretty big up-front expense. We need to get the financing figured out better. Maybe the power company should own the panels...

Re: Why Solar Installations Cost More in the U.S. than in Germany

#4
post #3

So, it sounds like most of the reason for the higher cost in the United States is that solar panels aren't a common sight - they have to be marketed more heavily to the end consumer, and power companies have to ensure that the system is safe to hook up to the grid.

I got solar a while back, and the company seems desperate for customers. They call and want to throw parties for my friends at my house, ask for referrals, etc. I think part of the challenge is that solar here in the US is still a pretty big up-front expense. We need to get the financing figured out better. Maybe the power company should own the panels...

SolarCity has some interesting options where they can install their systems for free and rent it out to you, on a per kwh or per month basis.

http://www.solarcity.com/residential/solar-ppa.aspx

http://www.solarcity.com/residential/solar-lease.aspx

Re: Why Solar Installations Cost More in the U.S. than in Germany

#5
One of the reasons is, as the article states, that US companies have to recover higher costs to acquire customers.

But it doesn't say why. The reason is because grid power is more expensive in Germany: $0.30/kWh compared to $0.10/kWh on average in the US. Therefore potential customers are easier to convince to use solar in Germany.

Re: Why Solar Installations Cost More in the U.S. than in Germany

#6
well its the tax breaks of course silly. In the UK the grants for solar used to guarantee around a 8% return - this is a tax break for the Upper middle classes who can spend $20k or so.

This is a result of the silly panic over fukishima in Germany and the greens being brought off to keep Adrea Merkal in power.

Re: Why Solar Installations Cost More in the U.S. than in Germany

#7
post #5

One of the reasons is, as the article states, that US companies have to recover higher costs to acquire customers. But it doesn't say why. The reason is because grid power is more expensive in Germany: $0.30/kWh compared to $0.10/kWh on average in the US. Therefore potential customers are easier to convince to use solar in Germany.

And, on the flip side, Germany has massive tax subsidies for solar power. It's a lot easier to convince someone to get solar panels installed on their roof if you can show them a tax benefit for doing so.

On a broader note, I don't get why we think it's a good thing for Germany to have this much solar energy. Unlike, say, Spain, the German climate is not especially well suited to solar power. It's too far north, as a country, and climatically, Germany has a lot of cloudy days, which means that solar panels are not really running at peak efficiency most of the time. Germany would be much better served by wind power, because of its advantageous position on the North European Plain. In a free market, that is exactly what would have happened. Instead, German government subsidies have unfairly advantaged solar energy, leading to an inefficiently high number of solar panels and underinvestment in wind.

Re: Why Solar Installations Cost More in the U.S. than in Germany

#8
I have never understood residential solar. Seems like a gimmick. Why would I want these panels on my roof? It seems like hosting a server in your basement. It is appealing in theory, but silly in practice. If I just hosted my panels at a site where other people hosted their solar panels, you could probably install it for less than $1.00 per watt.

Re: Why Solar Installations Cost More in the U.S. than in Germany

#9
post #3

Earlier quoted context omitted.

I got solar a while back, and the company seems desperate for customers. They call and want to throw parties for my friends at my house, ask for referrals, etc. I think part of the challenge is that solar here in the US is still a pretty big up-front expense. We need to get the financing figured out better. Maybe the power company should own the panels...

SolarCity has some interesting options where they can install their systems for free and rent it out to you, on a per kwh or per month basis. http://www.solarcity.com/residential/solar-ppa.aspx http://www.solarcity.com/residential/solar-lease.aspx

I don't understand why more people haven't taken them up on this offer. If it really guarantees you cheaper power and you don't have to put any money in, what's the downside?

Re: Why Solar Installations Cost More in the U.S. than in Germany

#10
post #6

well its the tax breaks of course silly. In the UK the grants for solar used to guarantee around a 8% return - this is a tax break for the Upper middle classes who can spend $20k or so. This is a result of the silly panic over fukishima in Germany and the greens being brought off to keep Adrea Merkal in power.

No it’s not, silly. There aren’t any tax breaks for solar installations in Germany. There are guaranteed prices energy companies have to pay for solar energy from small private installations.

And besides, this is about the cost of the installation. You did read the article?

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