According to a research study conducted for the U.S. Department of Commerce Economic Development Administration, business incubators provide communities with significantly greater results at less cost than do any other type of public works infrastructure project. This is a government report by a government agency responsible for economic development.
Researchers found that business incubators are the most effective means of creating jobs – more effective than roads and bridges, industrial parks, commercial buildings, and sewer and water projects. Incubators provide up to 20 times more jobs than community infrastructure projects at a cost of $144 to $216 per job.
Compare that to what is reported by recovery.gov for the state of California:
-- cost per job via grants: $154,000
-- cost per job via contracts: $508,000
-- cost per job via loans: $4,100,000
[Ref: http://www.recovery.gov/transparency/pages/home.aspx?State=CA]
Business incubators also increase the likelihood of success on a new business by 5X [nbia.org].
At a time when I believe California has a unemployment rate close to 20%, should we be spending federal dollars on "job creation" or should we incentivize businesses to do the same?
Monday, November 23, 2009
Sunday, November 22, 2009
Primer on solar power options and costs for your home
Quite a few people have asked me about solar power for the home, and what it costs. Here is a very introductory description of options available to you, from least expensive (zero cost) to most expensive (maximum long term benefit). I assume that you will hire a company to install solar panels on your roof (or yard or wherever) and that you will give excess generated electricity back to your utility company - the best alternative for most. At the end, I'll touch on non-grid connected systems.
OPTION 1: ZERO SYSTEM COST: The solar company installs your solar panels at zero cost to you. Absolutely zero. They own and maintain the solar power equipment at no cost to you. The company borrows to pay for the installation, and reaps most of the financial benefit -- the benefit to you is a lower and never increasing electric bill. They guarantee that your electric bill will never exceed a certain fixed amount (typically in the range of $50-$100/month based on your historical usage) for 30 years. Say its $60 - it will never go above $60 even if electric rates skyrocket, which they eventually will do.
OPTION 2: LEASE SYSTEM: The solar company installs your solar panels for a lease cost per month, just like an automobile lease. You decide how much power you want to generate (the more power the higher the lease cost) but you can go all the way to having a zero cost electric bill, just the lease cost. If electric rates skyrocket, which they eventually will do, your lease price is fixed and your electric bill is still zero.
OPTION 3: BUY SYSTEM: The solar company installs your solar panels and you pay for installation and materials, anywhere from about $10,000 and up. Most people finance the system purchase using a home equity loan. You decide how much power you want to generate (the more power the higher the cost) but you can go all the way to having a zero cost electric bill, just the original system cost. If electric rates skyrocket, which they eventually will do, your electric bill is still zero.
NON-GRID CONNECTED/OFF-GRID SYSTEMS: You can take you home completely off the power grid, disconnect from your power utility but this is not a good option cost-wise. Neither the state rebates nor federal tax incentives are available, plus the system must store the power overnight (batteries, etc.). Finally, you must add more capacity, typically 50-100%, to be able to handle peak demands from your home. Not a good choice, unless your home is located where there is no power utility available.
I've done both Option 3 and Off-grid, for what its worth. My option 3 does indeed result in a monthly credit on my electric bill most months. Of course, option 3 has no electric bill since I am the utility. Coo-coo kachoo.
OPTION 1: ZERO SYSTEM COST: The solar company installs your solar panels at zero cost to you. Absolutely zero. They own and maintain the solar power equipment at no cost to you. The company borrows to pay for the installation, and reaps most of the financial benefit -- the benefit to you is a lower and never increasing electric bill. They guarantee that your electric bill will never exceed a certain fixed amount (typically in the range of $50-$100/month based on your historical usage) for 30 years. Say its $60 - it will never go above $60 even if electric rates skyrocket, which they eventually will do.
OPTION 2: LEASE SYSTEM: The solar company installs your solar panels for a lease cost per month, just like an automobile lease. You decide how much power you want to generate (the more power the higher the lease cost) but you can go all the way to having a zero cost electric bill, just the lease cost. If electric rates skyrocket, which they eventually will do, your lease price is fixed and your electric bill is still zero.
OPTION 3: BUY SYSTEM: The solar company installs your solar panels and you pay for installation and materials, anywhere from about $10,000 and up. Most people finance the system purchase using a home equity loan. You decide how much power you want to generate (the more power the higher the cost) but you can go all the way to having a zero cost electric bill, just the original system cost. If electric rates skyrocket, which they eventually will do, your electric bill is still zero.
NON-GRID CONNECTED/OFF-GRID SYSTEMS: You can take you home completely off the power grid, disconnect from your power utility but this is not a good option cost-wise. Neither the state rebates nor federal tax incentives are available, plus the system must store the power overnight (batteries, etc.). Finally, you must add more capacity, typically 50-100%, to be able to handle peak demands from your home. Not a good choice, unless your home is located where there is no power utility available.
I've done both Option 3 and Off-grid, for what its worth. My option 3 does indeed result in a monthly credit on my electric bill most months. Of course, option 3 has no electric bill since I am the utility. Coo-coo kachoo.
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