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"This performs a wealth transfer from the poor to the middle class, when the middle class can buy partially subsidized panels but the poor can't, and then the p
by kumarski 7y ago
"This performs a wealth transfer from the poor to the middle class, when the middle class can buy partially subsidized panels but the poor can't, and then the panels "drop" the cost of power by raising it for everyone else, offering cheaper power to those who can afford it on the backs of those who cannot."
- Robotbeat 7y agoThis is partly a result of the monopolistic status of utilities. Usually, in a competitive market, if you add extra supply or reduce demand, the price drops. In a monopoly where the company is allowed to maintain profits, the reduced demand means less revenue and profits so they increase price. In a free market with lots of players, the profits would drop, the prices would drop, and marginal players would simply go bankrupt. It's clever marketing by utilities, however, to blame their abuse of monopoly power on solar power subsidies.