PV Gap

Cheryl Said:

Do you want to have Solar and Wind energy?

We Answered:

No. I don't like to collect junk.

Eugene Said:

Since the left wants to remove all natural energy from Americans would candles be a good investment?

We Answered:

Invest in cow dung. You can burn it for energy, or use it to raise crops when the messiah finally collapses the economy. In a pinch, you can even eat it.

Jackie Said:

Which oil companies have the biggest investment in renewable energy?

We Answered:

According to a popular commercial, Chevron does. They claim to be the biggest in goethermal energy technology.

Byron Said:

Solar panels require big initial investment, how can I check if the money I save will be more than that?

We Answered:

You have the main idea. Generally you are looking for a total installation cost of the system. For operational cost you may factor in a cost for potential repairs or you may assume that the system will not have an ongoing cost. The total is comparing to what you will save until the savings equal the cost. The result is a pay back period.

For example if my solar panels cost 10,000 and I saved 1000 a year, in 10 years I would "pay back" the investment, but there are several other factors to consider that may change the calculations. The more items you use that are running off electric the shorter will be the payback period. For example if you had an electric car and electric heating the payback period would be shorter. A typical photovoltaic payback period might be from 6 to 15 years.

There are other considerations. Installed solar panels will add value to the house. That value may hold up or depreciate like an installed air conditioning system. If we considered a straight line depreciation and your system should last 20 years then at the end of 10 years then you would have 1/2 your investment in the panels or about $5000. The panel efficiency may decrease with age. There may also be some salvage value in the panels at the end of their life. They could last longer than 20 years. This can substantially lower the pay back period.

You can expect the cost of your fuel to rise. At least from inflation. Once your system is installed you are free of such rises in prices and they shorten your pay back period. If you think that your fuel costs will increase by 5% each year that means that at the end of the second year you would be paying not $1000 but 1050. At the end of the second year you would be paying 1105 and so forth. If you feel that the supply of fuel will no longer exist the value of the offset would increase to the amount required to replace your energy system with something else. If this was not possible the offset becomes priceless.

Just as the picture begins to look very rosy there are some drawbacks: First the money that you "invest" in solar panels was going to earn you something where you had it. OK in these times maybe that is not much. But suppose you were earning 5% per year on that investment. This calculator says that in 10 years the cost of not having that investment would be $16288.95. 1

Your solar panels may require some maintenance. Some project that a DC to AC inverter will last only about 1 years. If you need to purchase batteries these will certainly need replacement. Someday flywheels or ultracapacitors may provide storage with a much extended lifetime. Someday fuel cell storage may also be an economic reality. Most people will simply have a grid connection.

Also solar panels are getting cheaper and more importantly fewer panels may be needed to produce the same power. How fast this increase will be is a guess. Certainly you may like to jump into the solar panel market after a big price drop. It is just hard to tell when that will be. Research helps, but there is a cost to waiting as well. That cost is the money you could be saving. (the same thing that is shortening your payback period.)

Joann Said:

Any interest in an online Investment Club- for Green Energy?

We Answered:

Prepare a proposal, get the legal stuffs done so that people won't think it's a scam.

Johnnie Said:

is "yge" the symbol for yingli energy holdings a good investment for the future?

We Answered:

It has a really high P/E, and a low forward P/E - shich doesn't sit well with me. EPS is lower than other companies in the sector, too. But it sounds like you know more about the company than I do. Personally I think GU and PTR are better energy plays. ***But I am no means an expert on Chinese Stocks** I play index funds for most of my international exposure.