One reason is that this will make it a matter of survival for energy companies and governments to mandate connection to the grid and buying of electricity, for fear of having these critical companies fail.
Because this is not going to make all energy cheaper. It's going to massively increase the cost of "legacy" energy while making some types of energy free.
Perhaps they will use a "social" cost-sharing, or ... well I don't know, but essentially the time will come when living in the countryside will come with "free" energy (not unlimited though), and cities will come with punitively expensive energy.
PV can scale down pretty far, yeah, but it can also scale up. Having guys crawl around on rooftops trying not to damage your shingles is a lot more expensive than just setting up some panels in a field. The majority of PV getting installed is utility-scale, not household-scale, so you can buy cheap PV energy and live half a block from a supermarket and half a block from a chichi cafe.
As for costs, there's been concern for more than a decade about the "utility death spiral" scenario: some users disconnecting from a grid would spread the fixed costs of things like transmission and black start over a smaller number of remaining users, leading more of them to disconnect, and so on. So far it hasn't materialized anywhere, but as far as I know it could. I don't think the same scenario is likely with "legacy energy" like gasoline and natural gas, because the fixed costs are so low.
Taxation of energy is a big revenue stream for the governments. What happens when people start putting independent energy sources to power themselves and it causes significant revenue drop ? Would the government tax them for putting up solar on their property ? Couple this with electrification of transportation and you have another taxation source (fossil fuels) losing revenue. This would lead to a disruption in the social power dynamics in a country.
Yes, energy companies can invest in these too, but why would I buy from them if I have my own generation ?
Fuel tax will definitely be replaced with some other form of car tax, at least in most of Europe. I don't see any way around that.
But I don't quite see how free countryside electricity would mean expensive electricity in cities? Large scale wind and solar will decrease grid prices too, and most people live in cities anyway so the people dropping off grid doesn't seem like an issue for electricity transfer costs. Plus off-grid won't happen anywhere with a real winter, so most of Europe is excluded already.
Of course they will, but energy companies have a larger minimum capital expenditure than a household looking to invest in generation. And the energy company will likely still carry the full cost of transporting energy, which becomes more expensive with more energy sources connecting to the grid.
It would be a change in the dynamics of economies of scale vs small and nimble, greater lobbying power is one thing economies of scale still have a big advantage in so GP's comment seems plausible.
Exactly. There will be no need for "legacy" energy. Companies that are too invested in fossil energy can die and be replaced with companies that invested in solar.
Not for nothing but there are solar bitcoin farms that are popping up for precisely this reason.
In the region where I live (upstate New York, USA), there are solar panel fields where just five years ago there was nothing.