The longer the cells are in use the lower the output will become. It is a fact of the technology and nothing found so far can change that. You may think that 80% after year 25 is great but that also means you have to overbuild your original install or add more capacity as the panels age.
The idea isn't to necessarily zero your electric bill it is to offset as much as you can. If the system paid for itself long ago then even 75% of the power they used to make is free power. And frankly, in 25 years I imagine it will be better to upgrade your panels to the latest, greatest, and vastly cheaper (if the last 25 years are any indicator) panels on the market. But like I said, even if you don't the system, which you should paid for itself long ago, will continue to produce power that is essentially free at that point. 80% for free is a hell of a lot better than nothing.
I think a lot of people think that the goal is to go "off grid" and, other than a few exceptions, that simply isn't the case. Grid-tied systems are the best of both worlds and what almost everyone should be considering. Basically the grid becomes your "battery" and you never have to worry about running out of juice (unless the grid goes down obviously).
The problem with solar panels is the materials they are made from was in strong demand before solar panels became an industry. Now that the green crowd thinks it is free energy the cost for those materials is even more because panel manufacturers increased demand for the materials.
Have you checked the price of panels lately? They have gotten cheaper faster then anyone ever imagined. Inverters haven't gotten much cheaper but there is a lot of new technology in some of them that increases power production.
Anyone considering solar , go to the site for planning a solar system and let it calculate what it cost to equal what you use now.
For me it is:
564 square feet of roof space
5.64KW /hour capacity in panels
$45,000 to install
normal cost of my util is $125 per month.
The only way they can make it appear reasonable is by tossing in government rebates of $25K.
without that is $45,000 /125 = 30 Years
I have been into alternative energy for 20+ years. I was here when they started the whole solar water heating craze, what a disaster that was. Hot water for 10 minutes unless you live in the hottest places on earth.
The only viable, low cost means for green power is water, wind, geothermal.
Holy crap! I really really hope that is an old quote because $8 a watt is really really expensive right now. $6ish a watt is much more reasonable today, mostly due to the huge price drops in solar panels over the last year or two. Hell, I can buy the entire package (panels, inverter, mounting, grounding, etc..) for under $3 a watt. Installation and electrical should be between $1-1.50 (very high end), throw in a bit for permits and misc..... $8 a watt is rape and pillage right now.
Would you mind pm'ing me a link to the companies website you are using or who and when they gave you a quote?
For refrence, here in Louisiana the typical payback period for a solar system is 5-6 years after state and fed. The ROI is absurdly great but of course that is with subsidies.