renewables stuck for a while , page-6

Interesting interview with Gerry McGowan in this mornings Eco Investor Update on this same topic:

Solar power equipment prices have fallen faster than Government rebate drops – meaning solar remains an attractive investment decision for householders and businesses, said CBD Energy.

However, concerns about whether government will continue to subsidize solar energy are causing consumers to be wary about installing solar systems. Scare campaigns by energy companies have also put consumers off-side, it said.

Managing director, Gerry McGowan, said people are missing out on the compelling economics of solar energy. "There's two certainties about the direction of energy prices - electricity from coal fired sources can only go up in price while solar prices are coming down."

"Not only is there a huge cost saving in electricity prices when you use solar but technology is helping make solar equipment cheaper. The main ingredient in solar panels – silicon - has fallen in price from around $450/kg in 2008 to just above $25/kg today and panels are getting more powerful every day.

"Ongoing changes to government policy have blinded people to realising how cheap solar energy is and so they're missing out on protecting themselves from inevitable electricity price rises.

There are also many safeguards and audits around solar installations and people just need to make sure they've got a qualified installer. Consumers can be confident that fly-by-night operators cannot survive in the market, said Mr McGowan.

Regarding pricing, average energy bills in NSW now show a cost of between 20 and 30 cents a kilowatt hour, reaching 43 cents at peak, while solar energy costs between 5 and 7 cents a kilowatt hour to produce.

Pricing of electricity in NSW is governed by the Independent Pricing and Regulatory Tribunal which in July approved a 17.6 per cent lift in prices for 2011, meaning the differential with solar is set to widen further.

The cost of installing a solar system ranges from $2,000 to $12,000, giving payback periods of between four and eight years at projected electricity prices.

END Article