Comment by FrustratedMonky
8 hours ago
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?
Optimally, I'd like to see both calculated with zero subsidies.
Some people also complain about Solar being front loaded. But a power plant is also paid for up front. I'd like to see life time costs, minus subsidies.