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And (B) is an issue. It's essentially deflationary economics. Why spend money now when it will be cheaper/more profitable next year? Once pricing on batteries s
by ams6110 8y ago
And (B) is an issue. It's essentially deflationary economics. Why spend money now when it will be cheaper/more profitable next year? Once pricing on batteries stabilizes, you'll probably see more people willing to commit to big battery projects.
- bluGill 8y agoThe old sunk cost fallacy strikes again. You invest today because by not investing you forego the savings in the mean time. That something would be cheaper next year is not a factor, only the current expected ROI.
- benj111 8y agoThe sunk cost fallacy is most often stated as, it isn't worth getting rid of something because you've already spent the money on it. Its unclear to me if this is an example of that. I agree with your general thrust though.
- bluGill 8y agoYeah, this is more of a reverse sunk-cost. If there is a term for that I don't know it.
- benj111 8y agoFirst off you don't know its going to fall next year. 2nd someone may sign a contract first.