I think we’re starting to make some progress. We agree that the true cost of using coal extends beyond the cost to operate the power generation facility. These costs include health-care expenses, cleanup of abandon mine sites, repairs to damaged and polluted waterways and groundwater sources, fixing sinkhole problems, dealing with underground fires, etc. Unfortunately, taxpayers are the ones who usually end up paying. To be fair, I believe that consumers should pay an amount that covers the true cost of the electricity they use. This would not only be fair, it would encourage conservation. Those conservation efforts would help to reduce greenhouse gas emissions and all of the other negative effects of mining, drilling, transporting, and burning of fossil fuels.

Anyway, the remaining fossil fuels are becoming harder to extract, making them more expensive. Modern drilling and mining practices have helped to offset these costs, but it’s still a down-hill course. My electric bill has been less than 1% of my income, a real bargain I would say, but that can’t last. It would be no surprise to see energy costs skyrocket in the coming years. I think you’ll see some real environmental policy changes with the next administration. The current administration is a disaster in that respect.

Your “bad math” argument regarding solar photovoltaic systems is based on the assumption that the equipment is financed over time. As I’ve previously stated, I pay cash for all of the equipment I buy. I started small, and I add to my system as I can afford to. Millions of people foolishly pay high interest rates for credit-card purchases every day for all sorts of things, but I’m not one of them. I guess that’s why I didn’t understand it when you said that if the cost of solar panels goes down, I’m in trouble.

Perhaps if I sell my home the cost of the panels will matter. Due to manufacturing expenses and supply-and-demand issues, I believe the cost of panels will increase in the long run. If the cost of panels goes up, my house is more valuable with them. If the cost of panels goes down I may not recoup the amount I spent for the panels, but I’ll just buy the less expensive panels for my new residence. Then there’s the issue of significantly higher utility-supplied electric rates in the future. You said that “people will only value the PV system for how much the electricity it generates costs…” That being the case, my system might be valuable beyond my wildest dreams in the future. Time will tell.

http://solarjohn.blogspot.com