Edit: Unless you're taking advantage of tax incentives to do it at house scale. Its hard to beat the economics of just being handed free money.
It may or may not make sense depending on your location. Many utilities would prefer to make customer-owned solar a very poor financial choice thru rate design (e.g. very high minimum charges, per-kw-installed solar charges, low daytime rates relative to evening rates, wholesale-rate compensation for exported production, etc). Some succeed.
If household power purchase price doesnt change with time/generation cost, then there is not ability to act faster than the power company.
Depends. It may be more profitable for utility companies, but they keep the profit of the economies of scale. It is almost never passed on to the customer.
If you DIY your own energy system, you're free to keep all the surplus generated by it through the life of the system.
Utility companies have to pay for distribution networks, and generally pass that cost on in the price per kWh. Which you avoid the less you use the grid -- and which then become a higher proportion of the prices the utility has to charge the more people do that.
That just has terrible results most of the time, because it means that people generally ignore or otherwise don't understand what the government is doing, which leads to all kinds of inefficiency and corruption.
But "law requires you to buy this expensive thing you don't want" is simple enough for people to understand and get mad about, and affects enough people to make politicians care.
Woah, I didn't know this. In any case, surely it's legal to have grid service to the house and simply not use it.
> I would not put it past the grid provider to come up with a minimum monthly bill
My electric company (a community owned co-op) has done this for many years. You pay $15/mo no matter what. Your power usage is billed on top of that.
There is a reason home generation wins. It's because retail prices are 3 times what the generator is paid. (That's true where I live).
So yes, in absolute terms power generated by home solar costs more than a utility generating it. But it's not 3 times more, so if you install home solar and use the power, it's always a big win. It will be the same with batteries.
The traditional forms of generating power, coal, gas, hydro and nuclear only win because home generation costs using those technologies (eg, putting a coal mine and generator in your back year) costs far more than 3 times. You can't put wind, or pumped storage in your back yard either.
But solar and batteries are different animals. They are different in other ways too. It always makes sense to over provision solar. The question is not whether to do it, but by how much. So home generators will always be looking to sell power, and since it's free selling it at 1/3 of what they would pay for the same power looks like money for jam to them. It makes you wonder how many utility generators will be left standing if solar takes over the world.
AFTER you finish paying off the financing of the source of home generation. so maybe it'll be a big win for the people in your location after you're gone???
I subscribe to a power company that produces power via wind. So my money is supporting green energy generation. So yeah, it would still be doing plenty. Not really sure why you gotta be so negative about something
A while back there was a thread on the SolarCity subreddit linked from HN where the OP discussed his savings thanks to nice weather, but still figured he had a 20 year payback period on his setup.
That is crazy.
Say a battery costs $10k and a home uses $100/ month electricity. If you assume electricity is free at night to fully charge the battery and meet energy demand, that’s 100 months (8 years) to break even. Real world costs are going to make it quite a bit worse than that.
Sure, let's say the summer months bump the Texas electric bill to $167/month (8$100 + 4$300). The previous model was assuming free electricity. My quick search is revealing that using differential pricing in Texas, the difference from the normal rate (~$.16) and the low rate (~$.08) saves ~$.08/kwh. Assuming you could perfectly offset all usage onto the cheap rate, that would yield a monthly savings of $83.5. Which yields a $10000/$83.5 = 120 month or 10 year payback period.
Then again, we forgot to right size the battery system. This site[0] claims an AC is going to use 16kwh/8 hours. A Tesla Powerwall is 13.5kwh. If you want the battery to fully cover your AC needs alone, you will need at least one additional battery system.
Naturally, we are missing out on maintenance, opportunity costs, grid connection fees, potential rebates, etc, but I think we have indeed landed on a more nuanced model.
[0] https://learnmetrics.com/how-much-electricity-kwh-do-air-con...
If you don't yet have solar and your site is favorable, I strongly recommend considering it if you can have it installed at a reasonable cost.
[1] https://www.tesla.com/support/energy/tesla-software/autobidd...
https://www.tesla.com/support/energy/tesla-virtual-power-pla...