Solar Energy ROI Example From White HousePosted By Dave Snope |
Obama was just in Las Vegas where he extolled the virtues of the new solar energy plant at Nellis AFB. It was all over the news. I heard my local radio and TV reporting about this groundbreaking energy plant that pays for itself and helps stop global warming. How does this work?
The White House gives us a list of facts about the Nellis plant:
http://www.whitehouse.gov/the_press_office/Nellis-Solar-Power-System-Tour-Nellis-Air-Force-Base-Las-Vegas-NV/
* The Nellis solar power system, completed in December of 2007, is America's largest solar photovoltaic array.
* The plant will generate more than 30 million kilowatt-hours (kWh) of clean electricity annually and supply approximately 25% of the total power used at the base, where 12,000 people live and work.
* The system covers 140 acres of land at Nellis AFB, 33 acres of which are a capped landfill which has been reused for this "green" energy project. The array is made from over 72,000 solar panels which track the sun to maximize the solar renewable energy we can receive.
* It will reduce carbon emissions by 24,000 tons annually.
* Using a "first-of-its-kind" public/private partnership, this project (which cost over $100M to construct) cost the AF less than $100,000 in capital costs, yet saved Nellis over $1.2M in its first year of operation.
* The Nellis solar power system is joint venture between the U.S. Air Force; Renewable Ventures; SunPower Corporation; and N.V. Energy.
* It took over 200 workers to build the array.
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So we have something that costs over $100M to build and save over $1.2M per year. My computer-like mind says that the base investment will take over 80 years to recover. If it lasts that long. But what about operating costs? Labor, maintenance, and parts? I'm going to guess 4 workers with generous benefits and healthcare costs totaling $500K, a very small 0.5% maintenance & parts costs for another $500K, netting $300,000 in savings per year. Now our ROI is 333 years.
Of course the AF only had to pay $100K in capital costs. Now THAT's some freakonomics. Where can I sign up to get a solar plant for my house for only 1/10 of one percent of actual purchase costs?
The White House gives us a list of facts about the Nellis plant:
http://www.whitehouse.gov/the_press_office/Nellis-Solar-Power-System-Tour-Nellis-Air-Force-Base-Las-Vegas-NV/
* The Nellis solar power system, completed in December of 2007, is America's largest solar photovoltaic array.
* The plant will generate more than 30 million kilowatt-hours (kWh) of clean electricity annually and supply approximately 25% of the total power used at the base, where 12,000 people live and work.
* The system covers 140 acres of land at Nellis AFB, 33 acres of which are a capped landfill which has been reused for this "green" energy project. The array is made from over 72,000 solar panels which track the sun to maximize the solar renewable energy we can receive.
* It will reduce carbon emissions by 24,000 tons annually.
* Using a "first-of-its-kind" public/private partnership, this project (which cost over $100M to construct) cost the AF less than $100,000 in capital costs, yet saved Nellis over $1.2M in its first year of operation.
* The Nellis solar power system is joint venture between the U.S. Air Force; Renewable Ventures; SunPower Corporation; and N.V. Energy.
* It took over 200 workers to build the array.
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So we have something that costs over $100M to build and save over $1.2M per year. My computer-like mind says that the base investment will take over 80 years to recover. If it lasts that long. But what about operating costs? Labor, maintenance, and parts? I'm going to guess 4 workers with generous benefits and healthcare costs totaling $500K, a very small 0.5% maintenance & parts costs for another $500K, netting $300,000 in savings per year. Now our ROI is 333 years.
Of course the AF only had to pay $100K in capital costs. Now THAT's some freakonomics. Where can I sign up to get a solar plant for my house for only 1/10 of one percent of actual purchase costs?