3 ms·
>My conclusion was that net metering ends up being a regressive tax on those who can't afford the upfront capital to install solar themselves. This is the trad
by cool_dude85 5y ago
>My conclusion was that net metering ends up being a regressive tax on those who can't afford the upfront capital to install solar themselves.
This is the traditional conclusion in the utility business, but I'd say it's also almost meaningless. By the exact same arguments, any kind of conservation winds up being a "regressive tax on those who can't afford the upfront capital", e.g. insulation, fancy windows, high efficiency HVAC.
If I can afford a $2400 upfront cost to go above code on my HVAC unit, but it saves 100 a month, that savings is being subsidized by the people who can't afford it. The utility loses 100 a month in revenue but much less than that in costs, and the difference is picked up by the broader customer base.
Hell, turning your thermostat settings up in the summer is a "regressive tax on those who can't handle the less comfortable temperature" by exactly the same argument.
- nostrademons 5y agoIt also ignores how R&D and tech markets work. That "regressive tax on those who can't afford upfront capital" is an "R&D subsidy to early customers who are providing the upfront capital to lower the cost of solar". As solar companies get more wealthy customers, they can spend more on technology to improve efficiency, they gain economies of scale, and they can attract more financial capital on equity markets. All of this has actually played out - the cost per watt of a solar installation is now 1/3 of what it was 10 years ago: https://www.nrel.gov/news/program/2021/documenting-a-decade-of-cost-declines-for-pv-systems.html https://www.nrel.gov/news/program/2021/documenting-a-decade-...