Perfect storm for solar

David Bergeron explaines: Why I’m Still Not a Member of the Solar Energy Industries Association even though he runs a solar oriented business in Arizona.

The more I learned about this new artificial solar industry, the more disturbing I found it to be. On-grid solar is nowhere near a break-even economic proposition. It is a very expensive and futile means of reducing CO2. Its job-creation argument is hollow in terms of opportunity cost given that there is no free lunch in the real world of economic scarcity.

Solar is a great field. Many hardworking entrepreneurs have and will continue to strive in free markets to make products that meet real needs. My own company is on a high-growth mode from niche off-grid applications; we have no rooftop business that will inevitably go through a boom/bust cycle according to political favors or a retrenchment thereof.

On-grid solar is a perfect storm for taxpayers: concentrated benefits for the industry, diffuse cost for ratepayers and taxpayers, and, yet, a strong positive public sentiment for solar created by energy Malthusians.

The fact is, when you figure out the total cost of a typical residential on-grid solar plant before subsidies, rebates, incentives and other ‘crony capitalist’ artifacts, the rate of return on the money spent usually exceeds the normal power bills. And that doesn’t include maintenance and repair costs over the lifetime of the solar plant.

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