KyleKatarn: The reason I like a smart grid is because if it's restructured the way I would like it to be, off-grid isn't quite as appealing to some folks anymore. Right now you'd get laughed at for suggesting to anyone interested in installing a renewable energy system to go anything above the net metering limit, and rightfully so. Selling at an avoided cost is like giving away power. You're neighbors won't know you did it and the electric company won't thank you.
wodmarach: Hmm in the UK your paid back at your companies going rate for KW/H's you put onto the grid I know a few companies in my area had negative bills in the summer that offset the cost in the winter enough that the whole year they paid less than 1/10th their old annual bills, hell companies will fit solar cells for free in exchange for the back to grid income though it's widely agreed you're better off paying the £6-12000 if you can afford it as for a normal family (2 computers, both parents working 9am-3pm etc etc) it's paid off in 4 years and the agreement lasts 12 for the free cells...
It sounds like the way it works in the UK is different than how it works in my state. It varies from state to state in the US too. In my state, you get retail credit for what you consume. Anything produced over what you consume for that month is considered net excess generation figured at an avoided cost which is credited on your next month's bill before that month's net metering takes effect.
Here's how I figured it using USD. The way net metering works here, 25 kW rated capacity is the limit for what power companies are required to provide for customers. I figure that it will take 36 years to pay off a decent solar array that was installed at $5/watt and has a capacity factor of 20% with an electricity rate of $.08/kWh. If you can install an array yourself and know where to look for parts to get good deals, maybe you could install an array for $2/watt and have it pay off in 14 years at that rate. This is considering that everything is perfect and that the production matches the consumption exactly.
I figure it would take 51 years to pay off the same solar array at the same prices if someone averages producing 3,600 kWh/month but consumes 2,000 kWh/month. The extra 1,600 kWh would be an avoided cost credit, which I figured at $.03 kWh (it's difficult to figure out what a power companies prices are, they're really good at being sneaky about that so people can't figure it out.) If you could install at $2/watt, it would pay off in 20 years.
Now, to go back to my post. If I could get 10 watts per square foot, I could install 96 kW on one of those 80x120 buildings I mentioned. I'll round it down to 90 kW. That's way over the net metering limit here. Utilities can make arrangements for installations over the 25 kW limit if they want to, but most likely they wouldn't and would just buy the power at an avoided cost. Furthermore, since it's over the limit it, the customer would not receive any net metering benefits. It would take forever to pay off. Most quality solar panels are warrantied for 25 years. The most I could try to convince that person to install is 1/4 of the roof space on one of his two buildings.
Of course, right now there are grants and tax incentives to reduce the cost of installation, plus the price per watt keeps dropping. Also, the price per watt starts going down for bulk purchases at the 25 kW level and above. Electricity rates will likely go up rather than down in the future too.
wodmarach: Hmm in the UK your paid back at your companies going rate for KW/H's you put onto the grid I know a few companies in my area had negative bills in the summer that offset the cost in the winter enough that the whole year they paid less than 1/10th their old annual bills, hell companies will fit solar cells for free in exchange for the back to grid income though it's widely agreed you're better off paying the £6-12000 if you can afford it as for a normal family (2 computers, both parents working 9am-3pm etc etc) it's paid off in 4 years and the agreement lasts 12 for the free cells...
orcishgamer: They passed laws here to only have to buy it back at wholesale. Fucking lobbies....
I spent too long on my post and saw this later. That's pretty much it. It makes me wonder why, if they're so cheap and a natural monopoly like people like to say they are, they need more lobbyists than anyone else in the legislature...