Thursday, August 14, 2014

Small Communities need solar power to come out of economic difficulties and become energy independent

Who need to reduce cost of government operations most? These are small communities at their debt limit and are not in a position or permitted by State laws to borrow capital dollars to build solar PV systems.

They have the opportunity to make their own power and pay off the debt from energy savings.
Their challenge is to raise the construction loan to build the system and long term low interest financing to pay ti back. The State and Federal Govt. has significant amount of pension funds that could be used to create a green funding mechanism to help such communities.

The federal USDA rural utility program may be able to help. Only time will tell as we watch the policies for Green project support.  Private capital looks for higher rate of return and larger dollar value projects which does not match with small community needs.

If this can be achieved then these communities can control their energy future and make solar power for the same price as they pay now. After 20 years the systems could be all paid and only O&M costs will remain for next 20 years when the power cost would be less that 6 cents per kWh as compared to Utility cost of over 20 cents /kWh. Energy independence by making same amount of power as they consume they will not be affected by future cost of energy. Fortunately this is possible as Government policy empowers the consumer to become solar power producer.

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