Ken Nelson

Sun Dumb?

The Utah town I live in, St. George, has a program where you can buy solar panels in their solar farm and receive credits on your electricity bill.

The details are available at http://www.sgsunsmart.com

The way it works is you pay $3000 for 1/2 a panel or $8000 for a full panel. You then get credit for 400 kWh or 800 kWh per year.

Currently St. George utility rates are $.0681 per kWh.

So with a 400 kWh “credit” for your $3,000 you can save $27.24 dollars annually.

Leaving you with a payback period of just 110 years (if you discount any opportunity cost on the $3 grand).

They answer this basic economic question in their FAQ:

• Why should people participate if there is not a good return on investment?
  There is a return on investment, but not a financial one. By participating in this program you are investing in your community.

So, really, SunSmart just seems like a voluntary tax on dumb people.

My concern for the program is that once in place, how long will it be till my $3K is forcibly taken from me?  I suspect that is what they want in the end.