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There are no problems with the business model, it just doesn't pencil out in that state anymore. Keep in mind the business model for solar is basically trading
by krschultz 11y ago
There are no problems with the business model, it just doesn't pencil out in that state anymore. Keep in mind the business model for solar is basically trading higher up front capital costs for lower long term recurring costs, and the capital costs are largely invested into products that have a rapidly declining cost. That sounds like a great plan to me, and while it requires subsidizes today, in a few years it won't. Arguably the entire drop in oil prices over the last few years was due to the realization by major players that we will see the end of fossil fuel demand before we see the end of fossil fuels. One of the key contributors to that is unsubsidized price of solar panels was getting very close to the price of oil (~24 months ago).
I would also argue, if you do not take care of the externalities of your energy production yourself, than accept that you are going to have to subsidize people that are reducing the demand for it. Why is it on the solar owners to pay for all of their energy storage but not on the coal power plants to capture and store their CO2 emissions?
- protomyth 11y ago"Why is it on the solar owners to pay for all of their energy storage but not on the coal power plants to capture and store their CO2 emissions?" Because those are two separate issues. One has nothing to do with the other. The story here is that a solar customer wants the government to force the power company to store his/her energy for them and the grid is not designed for that. The power company pays a wholesale rate to all its suppliers. I see this as a push to get better storage technology developed which will benefit far more people. The solar company is being disingenuous and I bet there books are not quite as positive before this event as they let on. I like home solar and will probably install it when I decide to buy a home, but I will install a storage system and a cut off so I can use my panels without the backfeed to the grid incase of power outage.