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by ChuckMcM 2540 days ago
Previous responses about my experience with my 5kW PV generation system in Sunnyvale, CA.

https://news.ycombinator.com/item?id=17509166

https://news.ycombinator.com/item?id=19163235

Based on your question though, you assume that utilities are somehow optimizing to provide energy at the lowest possible price. This is not true. In the US the utility is granted defacto monopoly status in exchange for its ability to ensure that it can make the capital investments in core infrastructure without going broke. Such arrangements allow the monopoly to demand rate hikes for any pretty much any reason (even for paying of litigation judgements against it when it was found liable for burning down a town).

With the existing system, there is no future in which the utility company makes any large scale investment in renewables at scale because it doesn't make enough money on that. It is sad but it is also the truth.

When a community decides to not use the state monopoly it can act a bit more rationally, but even then you need the equivalent acreage to provide the solar.

2 comments

Okay, but other parties than the energy companies can make the investment of rooftop solar. A simple construct could be that the rent you pay for the solar cells is less than your current energy bill, but higher than the point where the company breaks even.
Yes, and that was (is?) the business plan of various solar companies where they put solar on your house for "free", you pay them for your power, and they price you at some going rate that pays their costs. This was made possible by legislation that allowed California to demonopolize public power. What we have learned however is that an undue burden falls on the company that owns the actual transmission lines and cables since those things need maintenance but not all of the power going through them are paying a margin to the person who is tasked with maintaining them.

If you force solar companies to both provide the panels and provide the wires to hook your house up the local substation and maintain those wires, well they can't do that at a competitive rate.

In what world is the monopoly better off charging the same rates but with higher internal costs?
One where you have a service versus one where you don't. The establishment of sanctioned public utility monopolies goes back to the 30's at least in the US.