Its probably referring to the price at which solar can sell power. In the middle of the day, its actually effectively $0 (no marginal cost). In nighttime, its infinite cost. Fossil fuels marginal cost is effectively the cost of fuel per MWh.
Taxes are far too complex to figure that our. In the case of other there are a lot of different players and most do things other than oil and so it isn't possible to figure out what tax/subsidy is from oil.
Was wondering if anybody just took raw manufacturing/operating costs, and energy output, and compared. Removing all taxes and subsidies from the equation. If we are going to say Solar is now cheaper, I'd think it would have to be without subsidies.
Accounting is a big issue for renewables because almost all the cost is upfront. You pay a capital cost for X years (say, 30) of electricity. Maintenance is a much smaller fraction of the cost. Therefore the question of profitability depends on all sorts of non-power things: amortization, interest rates, how the tax-deductibility of a capital investment is handled, what future electricity costs are, and so on.
Its probably referring to the price at which solar can sell power. In the middle of the day, its actually effectively $0 (no marginal cost). In nighttime, its infinite cost. Fossil fuels marginal cost is effectively the cost of fuel per MWh.
Taxes are far too complex to figure that our. In the case of other there are a lot of different players and most do things other than oil and so it isn't possible to figure out what tax/subsidy is from oil.
Was wondering if anybody just took raw manufacturing/operating costs, and energy output, and compared. Removing all taxes and subsidies from the equation. If we are going to say Solar is now cheaper, I'd think it would have to be without subsidies.
Accounting is a big issue for renewables because almost all the cost is upfront. You pay a capital cost for X years (say, 30) of electricity. Maintenance is a much smaller fraction of the cost. Therefore the question of profitability depends on all sorts of non-power things: amortization, interest rates, how the tax-deductibility of a capital investment is handled, what future electricity costs are, and so on.
How do you suggest fossil fuel subsidies should be positioned in the equation?
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