OPINION:
“Setting the sun on a boondoggle” (Web, Dec. 17) was interesting, if somewhat inaccurate, like many of your anti-solar-energy commentary pieces. I am involved in residential solar applications, now installing my third owned system. A typical 10.0-kilowatt system installed by any of several reputable vendors costs approximately $35,000 turnkey. That produces an average of 13,200 kilowatt hours at $.12 each, saving $1,584 a year and resulting in a 4.51-percent return on investment. The local, state and federal subsidies up this to approximately 7.5 percent.
Commercial installations also can be tax-depreciated. The annual renewable tax credits currently provide another $1,800 in returns, which is another 5 percent or so. So if you borrow the money and own your installation, you virtually break even with no subsidies. Any adequately engineered installation using quality equipment can expect virtually no maintenance costs over the typical 25-year lifespan. The environmental benefits are clean fuel, cleaner air and, with the scattering of systems around the grid, a reduction on the grid stress, especially on those extremely hot summer days (which lowers the costs to the utility companies).
Commercial and residential installation will also see a sometimes-dramatic reduction in air-conditioning loads at those peak times, as the panels intercept and absorb the sun energy hitting roofs, especially those that are poorly insulated. Thus the returns will usually be in the 15-percent-to-30-percent return-on-investment range for installations.
I have tracked installation costs and production returns on more than 30 systems, some for up to six years, and can easily back up these numbers.
MIKE THOMPSON
Hollywood, Md.
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