... No, as I pointed out, it is competitive today even without the Subsidy, the difference is how long it takes to put you in the black, but over the lifetime of the system, even without the Fed Tax Credit, a PV system today, given electrical rates of .12 cent or greater, and sun hours like our sunny SouthWest will pay for itself. ... since we are nowhere near the problems you mention in your normally pessimistic way, there is plenty of time for PV users to install systems and reap the benefits.
Yes it will pay off eventually by your analysis which includes
only the 30% Fed Tax Credit, but that is true ONLY because you are ignoring the "hidden subsidy" of having non-PV customers of the electric company pay for the "virtual battery" that supplies the grid-PV user energy when the sun is not shinning. That is a very large and expensive virtual battery as it may need to supply all his demand for a week!
If ALL the subsidies were removed, then PV can rarely compete with grid power. That is the point I was making.
It is not "pessimistic" to point out the facts or to want an honest cost accounting. You need to stop with these unfounded personal attacks. Most grid-PV advocates, like you in your analysis, don't ever include the cost others are paying for the grid-PV user's storage system and then conclude grid-PV is economical. It is; but only because they are free loaders on those paying for their storage system.
I do agree that grid-PV can expand several times still before the cost of these "free loaders" to individual non-PV customers of the power company becomes high enough for them to revolt and demand that there be a separated charge for the connection, even if it is not used.
For example if your house has 100Amp connection you pay half the fixed capital cost charge of someone with a 200Amp connection. That would be a fair an honest accounting, but make grid-PV less attractive. I.e. the total capital in the allowed rate base divided by the total amps of all connections is the "connection charge" (per connected service amp) which you pay, even if you never use a single KWH. Then you also pay for the energy you used, which could be negative for the grid PV customer if he has run the meter backwards more than forward.
I don't like subsidies, hidden or open. I want systems evaluated honestly on their merits. You can and should recognize the PV energy does not release CO2, so the analysis should include a "carbon credit" for the grid-PV customer - I.e. when running the meter backwards he reduces the CO2 release by coal fired generation etc, but not for the fraction of the electric company’s energy production that is for example, hydro or nuclear, etc.
... Besides, even now a great deal of the cost of an electrical system is paying off the huge up front capital costs of new baseload plants, and what PV users do is to delay the need for that and thus lower the costs to the power companies.
While true the company is not paying off loans on the oldest power plants that has nothing to do with how you are charged for power. The public services commission allows a Rate of Return, RoR, on the on line capital, paid off or not. Usually both the rate base and the RoR are adjusted annually. The Three Mile Island nuclear plant was placed on line 31 December to get its capital cost included in the next year’s rate base, even though several of the safety system pumps were not yet installed.
BTW, many older and fuel inefficient plants are still "on line" and mainly used as quasi peaking units (Must be an anticipated peak as unlike NG turbine, it takes time to get the steam up) to avoid having them drop out of the capital rate base.
... As far as peak loads go, no they are not that big of an issue either, not with modern interconnects between systems and the fact that power companies use relatively low cost NG systems for these peaks (higher fuel costs but much lower capital costs)
Arthur
I agree that system interconnections do reduce the total capital required, but it is still at least 80% of your electric bill, so don't understand your claim "As far as peak loads go, no they are not that big of an issue..."
It is precisely these peak loads that make up the capital requirements that make up >80% of your electric bill. Electric bills are a "big issue" for many and will become more so, when they realize they are paying for "free loaders."