I didn't read all the suggestions for location, but it seems clear that there could be more than one great place to put Cheapatopia. For example, some people might enjoy desert living, where the inexpensive land and plentiful solar power are a good combination. Others might prefer to live in a place with four seasons, preferably above a geothermal power source. I can imagine the roads, driveways, and sidewalks in Winter Cheapatopia being heated to 33 degrees after a snowfall, so snow removal is never an issue.
Let's assume there can be more than one Cheapatopia, and that economists and engineers can identify the best locations. Our next question is energy costs.
I'm going to back into energy costs by discussing a barter system first. Imagine that Cheapatopia uses money just like the rest of the world, but for convenience, cash is banned. All payments are made by a credit/debit card (the same card).
Beyond regular money, the citizens of Cheapatopia would have a barter system whereby they earn what I will call Karma Points for services performed. For example, if you babysit for a neighbor, or walk someone's dog, you get some Karma Points that you can later spend to pay a neighbor to mow your lawn. You can still buy all of those services with regular money too, so this is just an option.
And perhaps seniors get double Karma Points for any services they perform, and kids get half points. That way the seniors can easily get help without feeling it is charity.
The key to making Karma Points work is a robust Internet-based service that sets prices for various services and keeps track of who has how many points. The real purpose of this system is not just the convenience of getting stuff done, but the social interaction it causes. Most people make their friends from their organized activities, past or present. They find their spouses and lovers the same way. Cheapatopia increases your social involvement and therefore your social life.
Bringing this back to energy costs, I wonder if there is some modern equivalent of pyramid building, without the alleged slavery, that can be applied to modern times. Could a community build an energy source through its volunteer labor that would be otherwise uneconomical?
For example, if you build an enormously tall tower, and put a wind turbine inside it, the natural air flow from the chimney effect creates energy. It's called a solar updraft tower.
Could citizens be enlisted, voluntarily, to contribute labor to building such a massive energy structure in return for Karma Points, or even reduced energy bills? I don't see it being practical either, but maybe you do, using some sort of pyramid design instead of a tower. Assume real estate and labor are both cheap, and the project can last 20 years. The immediate benefit is in the social interaction it causes, and the collective goal.
Or suppose the city of Cheapatopia creates its own factory for building the type of equipment used in huge solar power plant generation. The most economical types are the plants that concentrate sunlight on tubes filled with water, thus generating steam to power turbines. Cheapatopia could be its own first customer. The beauty of this system is that it is modular. The more units you set up in the desert, the more power.
If Cheapatopia is located where there is more wind than sun, then the enterprise could busy itself making windmills. The point is that the city could be organized around the production of its own energy, both for social reasons and for economics. Once Cheapatopia met all of its own energy needs it could become a provider to others, using the profits for city improvements.