Environment & Energy
Related: About this forumSuddenly, the Solar Boom Is Starting to Look like a Bubble
https://www.technologyreview.com/s/600805/suddenly-the-solar-boom-is-starting-to-look-like-a-bubble/[font size=4]Is the solar industrys boom for real, or is it being propped up by hefty government subsidies?[/font]
by Richard Martin February 12, 2016
[font size=3]By all accounts, 2016 should be a great year for solar power providers. In December, Congress extended the federal investment tax credit for solar installations through 2022, convincing analysts to project strong growth for the solar industry in coming years. Prices for solar panels continue to decline, even as emissions reduction targets reached under the Paris climate accord drive governments to seek more power from renewable energy sources. Several recent reports have shown that the cost of solar is often comparable or nearly comparable to the average price of power on the utility grid, a threshold known as grid parity.
But investors are not feeling the love. This week shares of U.S. solar leader SolarCity tumbled to a new low, while several other solar companies also took a pounding. Last month Nevada introduced sharp cutbacks in its program for net meteringthe fees paid to homeowners with rooftop solar installations for excess power they send back to the grid. California and Hawaii, two of the biggest solar markets, have introduced changes to their net metering schemes as well. Across the country, as many as 20 other states are considering such changes, which would dramatically alter the economics of rooftop solar.
The uncertainty has cast the solar providers business models into doubt. Without net metering payments, residential solar makes no financial sense for a consumer, SolarCity CEO Lyndon Rive recently admitted to the New York Times.
The rosier projections for grid parity usually assume that both net metering fees from utilities and government subsidies will continue. GTM Research this week released a report saying that rooftop solar is now at parity with grid power in 20 states, and will be in 22 more by 2020if subsidies are included. Without subsidies, the picture looks a lot bleaker. If each state added a $50 per month fixed charge to solar owners billsa change that many big utilities are fighting forsolar would be at grid parity in only two states. Critics of government subsidies for renewable energy have called the solar boom an artifical market that will evaporate the minute government handouts dry up.
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Dustlawyer
(10,495 posts)The state's are protecting the fossil fuel industry despite Climate Change.
kristopher
(29,798 posts)The question is the nature of the end product. Are we going to a) move to a distributed grid through adaptation of the existing ownership of the wires, or are we b) going to sow the stand-alone microgrids first and then network them through the new ownership of the wires that comes about as the utilities collapse from customer flight?
Those are the only choices.
Dustlawyer
(10,495 posts)Crazy when you think of Capitolism holding us back, I thought the free market should decide everything. Oh yea, the market has not been "free" for a long time!
Erich Bloodaxe BSN
(14,733 posts)that they've subsidized fossil fuels for many decades. Until then, I'll take their criticisms as being simply an attempt to keep fossil fuels in pride of place.
A Little Weird
(1,754 posts)It would be interesting to see how much solar has been subsidized vs oil, coal, etc.
OKIsItJustMe
(19,938 posts)Thats a good thing in my book, but
http://www.eia.gov/analysis/requests/subsidy/
OnlinePoker
(5,722 posts)On the surface, from the 2013 committee report by the CBO, renewables get the largest percentage of direct subsidies, but dig deeper and the fossil industry gets a ton more through depletion credits.
https://en.wikipedia.org/wiki/Energy_subsidies
djean111
(14,255 posts)ALEC is busily working in individual states to make it as difficult as possible to use, so IMO the marketing is sparse. The power companies now want to charge extra for solar customers to use the grid (like they were not already paying) and don't want to reimburse for the power they receive. Solar is a game-changer, and those who make big bucks from the grid are really not going to let go unless forced.
Let's take subsidies away from EVERYTHING and see how that goes - and, I notice that not using fossil fuels doesn't even matter, evidently.
Botany
(70,516 posts)Solar energy comes right to your home in many cases and that cuts out the $$$$
for energy companies and so they are working to stop it but in the long run they
will not succeed.
Nevadas Solar Bait-and-Switch
In late December, the states Public Utilities Commission, which regulates Nevadas energy market, announced a rate change drastic enough to kill Nevadas booming rooftop solar market and drive providers out of the state. Effective Jan. 1, the new tariffs will gradually increase until they triple monthly fees that solar users pay to use the electric grid and cut by three-quarters users reimbursements for feeding electricity into it.
More startlingly, the commission made its decision retroactive. That means that the 17,000 Nevada residents who were lured into solar purchases by state-mandated one-time rebates of up to $23,000 suddenly discovered that they were victims of a bait-and-switch. They made the deals assuming that, allowing for inflation, their rates would stay constant over their contracts 20- to 30-year lifetimes; instead, they face the prospect of paying much more for electricity than if they had never made the change, even though theyre generating almost all their electricity themselves.
The commission justified its decision by citing grid construction and maintenance costs that rooftop solar users havent been charged for, but circumstantial evidence suggests that other factors played a role. All three commission members were appointed or reappointed by Gov. Brian Sandoval, a Republican, whose two election campaigns have received a total of $20,000, the maximum allowed donation under Nevada law, from NV Energy, the Berkshire Hathaway-owned utility that is a major beneficiary of the rate changes. Two of Mr. Sandovals closest informal advisers, Pete Ernaut and Gregory W. Ferraro, are NV Energy lobbyists.
The American Legislative Exchange Council, which drafts model bills for right-wing state legislators and receives financial support from fossil fuel interests, has campaigned for rates like those the commission adopted, and, according to Greenpeace, NV Energy was at one time an ALEC member.
http://www.nytimes.com/2016/02/01/opinion/nevadas-solar-bait-and-switch.html
Kip Humphrey
(4,753 posts)SoLeftIAmRight
(4,883 posts)so sad