Alternative Energy or Alternative Thinking?
Posted on Wed, Sep 22, 2010 @ 08:50 AM
I was on this panel a while back where the subject matter was solar energy. (Your guess is as good as mine as to what I was doing on that panel.) Specifically, they were talking about the pros and cons of photovoltaic solar energy.
One guy in particular was going off on how our government doesn’t do enough to support the industry. He used Spain as a counterpoint to US negligence, claiming that in Spain, he was getting about $0.75 per KwH for the energy his solar technology was producing. At that price, the ROI on his solar setup was less than three years. Apparently, three years is the point where investors lose interest in throwing cash at a project.
My first thought was, “Wow! Energy costs in Spain are really high.” But I went with it, and listened to my panel-mates, who clearly knew more about international energy rates than I do. It turns out though, that it’s not the cost of power, it’s pure subsidy from the government of Spain. Hmm.
Maybe it’s because I’m a startup guy, but it seems to me a little broken to be mixing these hardcore subsidies and investor gains. I mean, at least with a startup, or a process, you are talking about creating sustaining jobs as well. But to have the people of Spain footing the bill for these solar panels so that some bankers can make 10x on their investment? A little unseemly, no?
I’m not a solar guy, nor do I really have a political agenda. (No complaints from me about Spain, the land of tapas, sangria, and Hemingway novels.) I’m just wondering aloud about the whole issue. I’d love to hear some comments from others.
-- Mike Rowan, Co-founder and CTO, Viridity Software