cfu on abc radio, page-32

Some interesting comments and views being put forward. Some mention the offsets from rising power costs, economies of scale etc etc.

My view is it will always be hard for the business case of BlueGen and the fully integrated mchp Gennex to stack up if all we are ever looking at is an individual buying units.

The paybacks are not clear cut. Sure the savings in electricity, selling power back to the grid, protection/insulation from rising power rates etc are all our favour.

But I think it will always be a line ball call and for me far too a dangerous investment if that was the game.

I personally keep going back to the original model of CFU were pushing before BlueGen became the main game. That was the cost of infrastructure and grid maintenance/expansion rolls into the billions of dollars and decentralised power was touted as a solution to reducing that major capital cost for power generators.

So whilst its a little quiet on this front these days the model that was thrown around was the mobile phone. Nobody would pay for the phone, but as part of a 2 year contract you would get a free $800 phone and the user didnt essentially see the cost of the phone.

So power utilities who are looking down the barrel of 30-50 billion grid programs (??) over the next XX amount of years will hopefully look at the Bluegen and place them in homes at a heavily discounted rate in order for them to help with base/peak loads whilst offseting grid/capital costs and still ensuring gas sales to the household.

Its more complicated then that but I still think this strategy is viable. If CFU are relying on me even spending 10K to install one myself without some sort of low financing option to fund it and cover the costs over a 3-5 year period then I wont be installing one as just like in businesses the average household requires cash flow and even if it works out more expensive many will swallow the quarterly power bill rather then pony up the 10k in cash for a Bluegen.