What is the estimated monthly cost for solar energy compared to conventional electricity from Xcel Energy?
The estimated monthly cost for solar electricity will initially be higher than conventional energy from Xcel Energy. It is important to know, however, that the social and environmental externalities associated with electricity generation are rarely contained in the market price. These include health costs to treat pollution related sicknesses and costs associated with global warming. A study1 done by the University of California-Berkeley concluded that the cost of externalities associated with conventional coal may be as much as 53.5 cents/kWh, while the external cost of using solar is 1 cent/kWh or less. Conventional practices are also heavily subsidized by the U.S. government, widening the difference between the true cost and the market price. The freEner-g long-term goal is to drive down the costs of solar leasing to a level which is competitive with conventional sources. The more customers that choose solar, the cheaper it will become.
