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Sun Volt Solar

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We are at a cross roads in human history, we can choose to continue on as we have been, or we can make a change to improve our future and quite possibly the future for several generations to come. We are here to promote energy independence, a better environment, a secure future and a higher return on investment for your hard earned dollar. It is what I believe in, it is why I am in the solar business.

Cost of Renewable Energy vs. Traditional energy sources

09 Feb 10 | Conservation

One point that always comes up in any solar sales presentation, why does it cost so much.  That is a very good question and there are several reasons:

  1. With solar energy systems, power producing equipment is installed vs. fossil fuels systems, where energy is purchased from a supplier.  There is no capital investment made, once the fuel is used, it is gone.
  2. Manufacturing, raw materials and research and development costs of solar power is higher than conventional system because of their smaller market share.  As solar expands, prices will come down and already have.
  3. Competition for raw materials, Photovoltaics in particular are competing for raw silicon against computer manufactures and other electronics manufactures, this is also decreasing.
  4. Fossil fuels prices are artificially low.  One estimate puts the actual price of a barrel of oil around $480.00 if all factors are considered.

In light of those factors, renewable energy, particularly solar is not expensive at all.  Consider this; we are burning through our reserves of oil much faster than new oil deposits are being discovered.  It is true, there are still billions if not trillions of barrels of oil yet in the ground.  However, most of that will never be extracted.  It is too expensive in terms of energy and capital to get to.  Therefore, it will stay where it is.  In the mean time, the amount we pay for our gas, oil, and electric in no way reflects the true costs associated with those products.

In light of those things, solar is pretty economical.  It is easier to pay the oil companies for their energy, but is it better?

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09 Feb 10 | Conservation
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Reader's Comments

  1. Cost of Renewable Energy vs. Traditional energy sources | Sun Volt … | Solar General | February 9th, 2010 at 5:13 pm

    [...] More:  Cost of Renewable Energy vs. Traditional energy sources | Sun Volt … [...]

  2. Andrew Petersen | February 12th, 2010 at 4:45 am

    I agree with you that oil will run out sooner than later, and that solar is not as expensive as people think. Solar, coupled with other renewable sources to balance out the grid system, will go more than far enough to overcome the power consumption needs of the world. And to the argument that solar is more expensive, its like looking at owning a house as compared to renting an apartment. Eventually you will own the house, and simply have to pay taxes, which is what the renewable sources of energy are. But renting an apartment will never give you a return on your investment, it just keeps charging you. That’s what traditional methods of power production are like, you will never get a return on the money you spent, you will just keep spending it.



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