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-- we've got -- today by the way this is a big day for the future of solar power law in California may be the entire country.
And there will be a vote.
By the state utility commission.
On an existing subsidy for people who put solar panels on the hopes the critics say of these these solar panels and -- and the subsidy the great -- just too expensive.
But it mostly benefits richer people who can afford those expensive solar -- joining us now is Robert Bryce from the Manhattan institute he -- -- also all of power law Hungary.
Robert do you think this is the beginning of the end for this raft of subsidies that goes all across the soul -- field across America.
Well that that might be overstating it a little bit Stewart simply because the cost of of solar PV is falling dramatically.
In fact -- as we saw with the recent anti dumping case and -- commerce department of storm about Chinese panels.
The price of panels is falling pretty rapidly so.
I'm pro solar I've solar panels on the roof -- my house I'm one of the beneficiaries of the subsidies that's at issue in California but.
To say it's at the end of the solar business -- of -- -- -- -- think might be overstating a little.
Always spending too much money are unjustifiably.
High amounts of money on -- options.
Socialism and solar energy programs ran great until you run out other people's money -- that this is this is the problem and what's at issue in California and again I'm I'm an example of this so I live in Austin, Texas.
I have 3200 watts of solar panels on the roof of my house.
About seven years ago the city of Austin had a rebate program they still do the long and short of it is -- -- 23000 dollar solar system installed.
On the roof of my house and the city -- baited me 151000 dollars.
Those solar panels now provide about two thirds of the electricity.
What my family and I -- -- I lower my bills but my their fellow ratepayers in Austin are effectively subsidizing my lower bill.
Did you get a check for 151000.
So I had to give up the money doled out in California and we 2000 you shelled out putting through browsing books in the city of Austin, Texas sent you a check for 151000.
So yeah net capital cost was 8000 bucks and you reduce the cost of electricity in your home by about -- us that's it.
Know about by by 13 want to Georgia by about by about 13 but even at that rate Stewart.
Wasn't a great deal financially but this is what I -- you are right about the energy business I talk about the energy business.
But even at that 8000 dollar cost assuming electric rates stay flat and the cost of capital was zero the payback is over twenty years.
They have to hold it longer hold hold on -- -- the broader issue we have been holed up 151000.
Dollars there's not many -- in America that can afford to hand out big checks like NAFTA thousands of homeowners in that city's.
-- that that's very expensive.
Absolutely and just to be clear Stuart I'm opposed all energy subsidies unless I'm getting them.
-- -- -- and but but but but this is a bit.
This is -- broader issue in California and it's about net energy meter in which is the program that I that I operate under.
So I effectively get -- roll my meter backwards when I'm producing excess energy from the sun.
But if you look at what's happening in California Pacific gas and electric just estimated that that cost of that subsidy is about 25 cents per kilowatt hour.
So the subsidy to solar users in California have lots of solar panels is about twice the effective national residential rate for electricity.
OK want quick last question finite how long's that solar system collapsed the -- on your house.
Well assuming we -- have wind storms hail storms torn it you know other things that happen here in Texas.
The life think -- the guaranteed life is something on the order of twenty years but.
It it could be -- and north of that but the but the financial payback for me even with the subsidies is about twenty years without the subsidy.
Be something on the order sixty to seventy years time so I think you do that you should give a big thank -- -- you'll follow taxpayers in the state of Texas and Austin, Texas and I'm sure you have already -- Okay.
Thanks so much Bob Robert we appreciate -- -- with a thank you so --