I don't have granite counter tops

Date: 9/15/13

Title: Solar Panel Is Next Granite Countertop for Homebuilders

News source: Yahoo News

Article date: 9/13/13

Author of article: Justin Doom

 

Summary: This article explores the idea that solar paneling and other “green” additions to homes are becoming very popular, especially in places like California, Nevada, Texas, Colorado, and Texas. These amenities are being compared to granite counter tops in the sense that they will become a “no brainer” when it comes to buying a house that one wants to live in for the long run.

 

Issue: This new trend may be helping consumers and architects and home builders specialized in the practice but it is hurting electricity companies and has the potential to cost those who stay with the electric companies a lot of money.

Argument: While electricity companies feel that increasing rates is the right thing to do, it is going to encourage their consumers to convert to solar panels and such. Converting to solar panels is the best choice, it is better for the environment, and will save the purchaser money not only immediately at “month one” but prevent them from paying increased electric rates down the line.

 

Supporting evidence:

• “SunPower has supplied components for more than 10,000 U.S.homes, including 4,000 built last year in California, the biggest solar state. As many as one in five homes built in the state this year will have solar, Werner said.”
• "Economically, there's absolutely no reason not to do this," Parris said. "Solar's the only way to go."
• “In response, utilities are raising rates, a burden that's a slightly heavier burden for people without solar power. In California they may eventually pass on as much as $1.3billion in annual costs to customers who don't have panels.”

 

Claims: “KB sells solar as an option on homes in Nevada, Texas and Colorado and plans to offer it in Arizona beginning next month.” V.S Megan McGrath, a real estate analyst with Stamford,Connecticut-based MKM Partners LLC, said building new homes with panels is still mainly a California phenomenon.  

 

Analysis: Electric companies are creating a self fulfilling prophecy, by raising their rates and creating an environment where their costumer will chose to switch to personal solar panels for their homes. Because this is happening in California the trend is likely to spread as often much of the United States follows in California’s early adopter footsteps.  

The statistics show the rising popularity and inevitable spreading of personal solar power.

 

Relate to economic concepts: This is relatable to the production possibilities frontier. At the moment we have more people using less of the solar panels but we are still at “full employment” but as the number of people who use traditional power companies decreases the number who use the personal solar power system will increase. It’s like the guns and butter chart, there will be a point at which they are even but soon it seems like there will be way more using the solar panel system, and in my opinion there’s not much opportunity cost on a personal level.