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> If the on-premises Solar City model (front the cost of the system and installation in exchange for being able to sell the electricity produced) was proven the

> If the on-premises Solar City model (front the cost of the system and installation in exchange for being able to sell the electricity produced) was proven they would be doing it. No - this completely ignores the way the electric grid, generation, and distribution work. Just because 'utility solar' is more efficient for large scale generation, that doesn't mean it doesn't also make sense for individuals to be able to produce their own electricity. My solar system has a break even point of 5.9 years - in another 3.4 years I will be pocketing several thousand dollars per year that would otherwise be going to PG&E. Doesn't sound like a gamble to me.

admksx45v65uqpw 10y ago
The question is, would you have had higher returns investing in a large-scale solar project? I have achieved breakeven over buying some produce from the grocery store by growing it in my back yard, but that doesn't mean it's the future of agriculture. I guess it would help if the local Whole Foods were required to buy my excess lemons at the $1/each sticker price.
- smsm42 10y ago
  > The question is, would you have had higher returns investing in a large-scale solar project? If you are lucky. If you are not, you've just invested in Solyndra (yes, I know they are manufacturer and not producer, doesn't matter). Local solar is much less risky.
- roel_v 10y ago
  Growing your own produce is a net negative 'investment', even when you don't factor in the labor cost. On-premises solar starts making money after a few years (or today, depending on circumstances - I took out a subsidized loan to finance them, so no initial outlay, and had lower costs the day they were installed); centralized solar might make (a few percent) more but you can't leverage, you don't have control over anything (CEO 200% salary hike? 'sure', says the board, 'we're paying a 10% dividend aren't we? That's huge by industry standards!'), and you run the risk of losing everything (whereas solar panels are on your roof and unlikely to be a total loss). So very different risk profiles, hence very different risk/reward trade-offs.
makomk 10y ago
SolarCity's business model relies on net metering laws that effectively force the utility company to do all that distribution work for free and buy the solar energy for a higher-than-market price, all subsidized by other customers.
- djrogers 10y ago
  Yup. Rent-seeking is as old a business plan as government...

admksx45v65uqpw 10y ago

The question is, would you have had higher returns investing in a large-scale solar project? I have achieved breakeven over buying some produce from the grocery store by growing it in my back yard, but that doesn't mean it's the future of agriculture. I guess it would help if the local Whole Foods were required to buy my excess lemons at the $1/each sticker price.

smsm42 10y ago
> The question is, would you have had higher returns investing in a large-scale solar project? If you are lucky. If you are not, you've just invested in Solyndra (yes, I know they are manufacturer and not producer, doesn't matter). Local solar is much less risky.
roel_v 10y ago
Growing your own produce is a net negative 'investment', even when you don't factor in the labor cost. On-premises solar starts making money after a few years (or today, depending on circumstances - I took out a subsidized loan to finance them, so no initial outlay, and had lower costs the day they were installed); centralized solar might make (a few percent) more but you can't leverage, you don't have control over anything (CEO 200% salary hike? 'sure', says the board, 'we're paying a 10% dividend aren't we? That's huge by industry standards!'), and you run the risk of losing everything (whereas solar panels are on your roof and unlikely to be a total loss). So very different risk profiles, hence very different risk/reward trade-offs.

makomk 10y ago

SolarCity's business model relies on net metering laws that effectively force the utility company to do all that distribution work for free and buy the solar energy for a higher-than-market price, all subsidized by other customers.

djrogers 10y ago
Yup. Rent-seeking is as old a business plan as government...