Dr. Humphrey points out what could be done IF ....
These types of investments are only made when policy and money combine to
create viable projects. The actual cost of large scale photovoltaic systems
today is $0.25/kWh to $0.30/kWh. At the moment the cost of fossil power is
$0.08/kWh to $0.15/kWh in Florida. Pollution from the combustion of fossil
fuels does not cost anybody one single penny.
In other words, pollution is FREE. Pollution from the production and use of
fossil energy is not taxed or otherwise burdened with any significant
Federal, state and utility financial incentives are required that will
reduce the capital cost of PV systems by at least 50% for a project to be
competitive in the financial markets. In addition, these incentives need to
be permanent and predictable for the life of the project.
This has not happened.
The $5 million Florida rebate fund is already exhausted and federal tax
credits expire at the end of the year. Unfortunately, the US government and
the State of Florida have not yet put policy in place that makes investment
in widespread deployment of photovoltaic projects attractive to capital
I have not yet found investors willing to invest serious money into projects
with a projected return on that investment of zero or less.
Under this new agreement, ASU contracts to purchase the power generated on
its rooftops at a set price for fifteen years. The pricing takes advantage
of federal and state tax credits as well as incentive payments provided by
Arizona Public Service as authorized by the Arizona Corporation Commission's
Renewable Energy Standard Portfolio.
David E. Bruderly, PE
Bruderly Engineering Associates, Inc.
920 SW 57th Drive
Gainesville, Florida 32607-3838
From: Bioenergy and Sustainable Technology Society
[mailto:[log in to unmask]] On Behalf Of Humphrey,Stephen R
Sent: Monday, July 07, 2008 10:32 AM
To: [log in to unmask]
Subject: Arizona State University Awards Contracts for PV Systems
Dr. Stephen R. Humphrey, Director of Academic Programs,
School of Natural Resources and Environment,
Box 116455, 103 Black Hall, University of Florida
Gainesville, FL 32611-6455 USA
Tel. 352-392-9230, Fax 352-392-9748