Wednesday, December 21, 2011

One way to decrease the price of renewable energy.

After writing my last post, I've pretty much come to the conclusion that renewable energy can work, but the problem is in the price. Subsidies' existence are as volatile in the political sphere as some regions of the globe, so its important that energy in the future be subsidy-independent. So, how do we reduce the price? You only sell the power to energy efficient homes in an energy efficient community. Instead of providing power to only 20,000 homes, or it could provide power to 40,000 homes at half the cost. The price could be split up between a larger number of consumers, thus, making the price lower. For simplicities' sake, lets say that each home had to pay $10,000 a year if there were only 20,000 homes. This would be a total of $200,000,000 million dollars. If you split that up to 30,000 homes (by making each of the original 20,000 homes 50% more energy efficient) the cost would be $6,666.67, an annual reduction of $3,333.34. As you can see, selling them to energy efficient homes would make more sense than normal customers.

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