stickyfrog wrote:
Treppenwitz wrote:
Yes, the national electric company will buy the electricity produced by the pv array at four times the going rate.
Why would they do that?
The electric company wants as many PV arrays out around the country as possible. But they are too expensive for most people.
So they ask the home owners to fork over about a quarter of the cost as a down payment. The balance is financed by the electric company with the payments being made via the proceeds of the electricity the panels create.
If they paid the homeowner for the electricity at the same rate as the home owner pays to buy electricity, it would take the expepected lifespan of the array to pay them off... making it a losing propositions for the homeowner. So they pay a much higher rate for the electricity created by the panels as a way to ensure an incentive for as many homeowners as possible to purchase the arrays.
Now comes the real underlying reason.
Most of the country's electricity is created by seval coal fired plants on the coast. The panels will never be more than a small supplement to those plants. But as the country's electrical needs grow every year, there are several peak periods where the system struggles to keep up. This is where a large network of additional PV power stations will help even things out and ensure the oveall system never approaches its limits.
To do this they need to invest in infrastructure (by helping homeowners to make the initial investment). It is taking the long view of things and is considered a national priority.