Re: Solar-hydrogen home power system?
From: Fred McGalliard (frederick.b.mcgalliard_at_boeing.com)
Date: 11/09/04
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Date: Tue, 9 Nov 2004 14:57:20 GMT
"Don W." <dNOSPAMwiddersAThotmail.com> wrote in message
...
> Forever after the purchase of a solar system (more than just panels),
there
> is a 'lost opportunity' cost because the money spent on the system is no
> longer available to spend on other things (like electricity!) Some people
> seem to think that the cost should not be amortized if they pay cash
> instead of borrowing money for the purchase. This makes for a senseless
> model because the money they paid for the system could be earning interest
> if not spent.
Don, this little presentation is much too brief and simple for this topic.
Primarily your comments deal only with the cash part of the equation, which
is the least of our wealth, and the most subject to manipulation. The up
front purchase of 40-60 years worth of electricity by any means (by contract
with your local power company for example) would require analysis of the
risks, including inflation, as well as the lost opportunity costs. And the
general topic of amortization for this kind of system requires amortization
of community resources, not just cash. Amoung other things we are amortizing
square yards of sunlight, which I find pretty prescious at times.
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