Just for a hoot, I got an estimate for a turn-key 5 kw grid tie system from a reputable dealer.
This system will produce a year-round average of at least 30 kw/h a day, even after 15 years according to the warranty from Sharp (PV module manufacturer) I live in New Mexico. I easily have enough roof area to put in 10 kw of panels (I have a 1200 SF house, and a 1000 SF shop building) Based on the roof area estimate panels are 40" by 70", or ~ 20 SF each, 25 panels, I could put in far more panels than I could ever use.
Price includes installation, panels, permits, racks, wire, labor, inverter, everything.
The total installed price comes to $42,000. <ouch> I could do a lot of the work myself and take about $12,000 off that. If I spent some time reducing my consumption, I could probably get by with a 3kw system. This is still a lot of money, but it is more in the "joe everyman" world, where people spend 15-20 k on a car that has near zero residual after 5 years.
Based on the $42k figure, the payout is only 11 years, at 2005 average prices for power from PNM. I do consulting work for PNM, and they are planning new gas-fired turbine plants. Based on this little fact, I'm expecting electricity to become much more costly in the future.
Heres some details: A 30% credit up to $2000 off my 2006 and 2007 taxes. (so in other words spend 7k on solar stuff, get 2 k off income taxes) After this initial 3-year period, there are tax savings every year thereafter. ($2000 comes to mind, but I may be wrong here)
PNM does net metering, a 5 kw system would stop that sucker cold, So, I would not spend ~ $.08 on the first 200 kw/h per month, and not spend $.11 on the next 800 kw/month (I average about 1000 kwh/month. Here's the intriguing part, PNM will PAY me $.13 a kw/h for whatever I produce, even if I use every watt before it hits the grid. So, in a sense, I'm selling power to the utility for $.23 a kwh, and buying it back for $.08.
When I was a young chemical engineering student, I did a research project on the economics of solar energy. My conclusion was that it would take 40 years to payback a 5 kw system 20 miles from the nearest power pole, at $1000 a pole to bring power out to the site. Now it's looking like I can put a system in the middle of a city and payback comes in less than 12 years at current prices.
I don't think I'm going to go out and spend 42k tomorrow, but I am seriously considering putting the electrical end, minus the panels in and then putting whatever tax-advantaged solar energy money into more panels every year.
Of course, I may be better off buying as much gold and ammo as I can carry, and getting ready to hide in a spiderhole for a couple of years. The very idea that I could peacefully enjoy cold beer, air conditioning, and garden fresh produce while the surrounding populace was having a tough go of things is pretty ridiculous. I guess the real question is if the meltdown is more than 11 years off.



