QOTD: The New Math of Alternative Energy

The New Math of Alternative Energy - WSJ.com

One reason there's relatively little solar electricity is that traditional solar panels aren't very efficient at converting sunlight to electricity. So most solar electricity is made and consumed at a single site -- and in many cases isn't even enough to meet the needs of a single house. A recent study by the New Jersey Board of Public Utilities found that it cost about $77,500 to install a 10 kilowatt-capacity system on a house. Without subsidies, it would take 50 years to pay for itself [emphasis mine]. With subsidies, it dropped to 9.6 years.

In all, the cost of generating electricity with solar panels is 35 cents to 45 cents per kilowatt hour, according to the International Energy Agency. In the U.S., costs are typically less -- 26 cents to 35 cents -- because there's better sun, says the U.S. Solar Energy Industry Association.