Solar Power, Alchemy, and Magic Numbers

Larry » 07 June 2008 » In Clean Energy, New Jersey, Solar »

There are magic numbers in New Jersey: $450, $550, $771, $150 and $600.

In Jersey you can produce a widget that would cost you $150 to buy, use or sell the widget, and then sell it again for $450 to $550 - that is sell it for $600 or $700. The question is, how much does it cost to produce? And the raw ingredients and fuel are free, so the production costs are only are only the amortized costs of the machine.

Allow me to explain.
Jersey allows you to produce a widget of solar power, use it or sell it, and then sell it or sell it again for three times it’s current value or more. In Jersey, every kwh of power produced by a solar energy system is worth 3, 4 or perhaps 5 kwh. The answer, in a word, is SREC’s, Solar Renewable Energy Certificates.

Electricity producers In New Jersey have a choice. Produce power using solar, or pay “the Solar Alternative Compliance Payment” - a fine. They also have a way out. Rather than produce the power, they can buy the right to claim the solar power someone else produced. They do this via Solar Renewable Energy Certificates. Today, for “energy year 2008″, the “the Solar Alternative Compliance Payment” (the fine), is set to $771 per mwh (click here for NJ Clean Energy Page, here for SREC Trading Page). The SRECs, therefore, are forecast to be worth $450 to $550 for every mega watt hour, mwh, produced. Electricity purchased from the utilities costs $130 to $150 per mwh. The total value of the electricity produced using solar power in NJ is the sum of the price you would pay if delivered plus the value of the SRECs of that power.

If the electricity I buy costs $150 per mwh, and the SREC value of the electricity I produce is worth $450, the total value of the electricity is $600.

This is a New-Alchemy. It’s not turning lead into gold. It’s turning sunlight into money.

The questions are:

How much – or how little – does it cost me to install a Solar electric generating system?
How quickly will that system pay for itself?
How many times will that system pay for itself over it’s 40 or 50 year life?
Why aren’t more people doing this?

Tags: Alchemy, New Jersey, Solar

Trackback URL

No Comments on "Solar Power, Alchemy, and Magic Numbers"

You must be logged in to post a comment.

Search

Short Posts

ENERGY POLICY & PUBLIC HEALTH
There really is no such thing as “Clean Coal.” Mining coal destroys mountains, and is very dangerous. Even if you could sequester the carbon, burning coal releases other pollutants, including mercury into the biosphere. The mercury makes it’s way into fish. This is why people, especially children and pregnant women, should not eat a lot of tuna or swordfish. Wind power, on the other hand, really is clean energy. Offshore wind turbines don’t release pollution. On the contrary, they create artificial reefs, which enhance fish habitat. This is also good for fishermen, the economy, etc. (0)

TALK MAY BE CHEAP, BUT
when the markets are falling, prices are rising, and credit is tightening, it’s a uniquely affordable indulgence. - Walter Kirn, What’s a Depression, Daddy? New York Times Magazine, Nov 9, 2008 (0)

SIERRA CLUB KILLS KING COAL (mini)
The EPA has ruled ( full text PDF ) that new and proposed coal plants must address their carbon dioxide emissions - essentially killing off the construction of new coal-fired power plants in the foreseeable future. The EPA says “You may burn coal, but you must do it cleanly.” ( Sierra Club Press Release / Full Post ) (0)

FOCUSED SOLAR MELTING STEEL?
Coolstuff and MetaCafe have videos which show the power of a focused solar array melting steel. (Click here for CoolStuff - Here for MetaCafe) It’s basic college mechanics - and also pretty amazing. (0)

CONGRATULATIONS, BARACK OBAMA AND AMERICA!
President-Elect Obama’s campaign was focused, disciplined, and effective. He has shown himself to be bright, calm, and decisive. He listens, and he has good judgment. We at Popular Logistics wish him and the country well. And we know this: If President Obama governs the way President-Elect Obama campaigned, the country will do well. Very well. (0)

SMASHING APPS: PROJECT MANAGEMENT TOOLS
Smashings Apps has collected a number of project management tools - most if not all free. For community groups - disaster response-related or other - there’s probably something useful for all but the most tech-savvy (or best-funded) groups.

(0)

ELECTRICITY: 100% CLEAN AND GREEN BY 2018
The Gore Energy Challenge - 100% clean, renewable, sustainable electricity in 10 years, can be described in 3 words. Reasonable, Achievable, Visionary. Here’s how: 40% Land Based Wind = 100 GW: $200 Billion. 40% Offshore Wind = 100 GW: $286 Billion. 20% Solar = 50 GW: $325 Billion. 100% Clean Energy = 250 GW: $811Billion. Save the Earth, and the Economy - Priceless. The Stone Age didn’t end because we ran out of stones. And the age of fossil fuels is ending not because we have run out of fossil fuel, but because we have figured out how better technologies. Biofuels, Geothermal, Marine Kinetic, Solar, Wind, and of course, Conservation. (0)

GREENSPAN: "IRAQ WAR ABOUT OIL"
Alan Greenspan claims Iraq war was really for oil: “I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil.” (0)

popular logistics