Photovoltaic solar cells have an undeniable “cool” factor, but they’re not yet ready for prime time in Virginia. An Arlington blogger who goes by “X Curmudgeon” describes the economics of a 14-cell solar array he installed on his roof. The installation job cost him $24,000 — or $22,000 after a federal tax credit. He expects to cut his electric consumption about 17 percent, saving roughly $300 a year at current electric rates. That’s less than a 1.4 percent return on investment.
Of course, the return will increase as electric rates increase, which they surely will do when Dominion lifts its rate cap in a few years. And X Curmudgeon will always have the knowledge that he’s guaranteed enough electricity to keep the refrigerator running in case of a Dominion power outage. But under current conditions, only hard-core greenies are likely to invest their money this way.
However, things may change. Global production bottlenecks on solar units could ease, allowing prices to come down. Likewise, technological breakthroughs could improve solar PV efficiency. Virginia lawmakers still need to ensure that there are no regulatory barriers to widespread adoption should solar PV become economically competitive.
(Hat tip to Ray Hyde for pointing me to this blog entry.)