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Originally Posted by include
If they made it a standard to install solar panel roof tiles on all new houses built in europe, north america etc. the overall effect of solar would be dramatic.
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HYPOTHETICAL EXAMPLE ONLY
Well they just have to lower interest rates to help compensate for the higher cost of renewable solar power on houses roofs. If the average mortgage is $300,000 then lowering rates by 1% will save $3,000 per year so in 3 years without effecting demand in the new housing market they could simply lower interest rates by 1% for new housing and make it mandatory that every new house has solar panels. ( Either grid connect of battery backup systems. Add in Micro wind as an option.
For lack of a better measure, a 1kw generation capacity = 1% interest rate discount or whatever suitable. You can mix and match to suit, though best to keep it as simple as possible.
In 3 years you have recovered your money for a $9000 system via the discounted 1% interest rate. Plus add on to that the electricity savings over 3 years. If your average power bill is $1500 per year and you system saves 75% of power then you save an additional $1125 per year or $3375 over 3 years.
In year 4 onwards you continue to save because interest rates are kept low by keeping the incentive discount interest rate policy in place. Thus so you save $12,375 per year with combined energy and interest rate savings.
Demand for new housing is balanced as before and existing housing can apply for the rate discount if they install solar. A deal can be done between the Government, Reserve Banks and private banks.
If you paid cash for your home then you can probably afford solar.
This may sound economically controversial, but I think it makes good sense to me. You replace lower new housing demand caused by higher new house prices with mandatory solar systems, with lower rates to on average equal the net cash flow effect based on the average loan size.
You see interest rates mostly benefit the wealthy, because when rates are low the wealthy can borrow more to invest and lock in low rates and when rates are high the wealthy can get the best returns. The more money you have, the greater your discount when investing. You get treated better by the banks. Wealth is relative of course but I'm speaking the real wealthy, but that's another topic.