> "lots of self-generated power will ultimately be wasted."
This is sunlight falling on a roof. If you convert it into electricity but then don't use that electricity, is it really a waste? It's like saying that the overflow from my water tank that collects rain water off the roof is 'wasting' water.
It could be argued that it's a waste in the sense that the generated electricity could have gone to someone else if there was a grid, but if the grid operator isn't allowing excess to be put back into the grid (e.g. because there's no demand at that time because it's sunny and everyone is using solar), then the grid operator needs to solve that with some form of energy storage (e.g. batteries).
The hubris in this article is unreal: it's posing that privately owned utilities are a good thing and that bypassing them is some crime that's done by ratepayers. I hope that business model dies in a fire.
Instead the entire paradigm of centralized generation may need to be called into question and we should instead be focusing on a hybrid centralized baseline + local generation and storage. Places like China do fine with promoting residential solar where nearly half the solar was on residential rooftops (2023) [1].
Wow. Did you read the next three paragraphs to the end of the article:
| Policymakers are now attempting to come up with solutions. “You can make solar play nice with the grids,” ...
| Yet the best solution would be for energy firms to respond to the competition and sort themselves out.
The article is talking about:
* how solar is disrupting the traditional utility model
* in countries where the utilities provide a poor service wealthy people are doing there own thing producing their own power with PV
* how this leads to less customers for the utility leading to more expensive power for people who cannot afford to generate their own power
* that solutions like grid-tied home PV instead of independent systems provides a better outcome for everyone in the area.
I don't think it it to much of a stretch to say that the article is advocating for, as you say, "a hybrid centralized baseline + local generation and storage."
You forget that governments built the grid. Then they sold them, usually for far less than they're worth to "friendly" companies to get some money to spend. These companies, in a complete baffling coincidence then provided a suspicious number of those politicians with board seats after they retire from government, or "government liason director" positions and the like. Now the government is forever paying interest ... well, not so much the government, of course, the customers are. You and me. The government got the money, spent it, it's gone.
BUT, a while ago rich people started to get off the grid. And this has advantages, such as much greater flexibility in where to live, so they did.
Middle class people could get off the grid, which ironically the government paid them for. So they did.
Companies largely got off the grid (it's more complicated, they built solar plants, then sold the electricity for electricity at night or somehow traded with grids, and locked in these contracts for decades). So they're effectively off the grid.
So who's paying this eternal interest that keeps increasing?
Who isn't off the grid? The governments themselves, and poor people. Governments have, of course, decided they don't pay for the grid themselves (not even for maintenance). It's in your electricity bill ... which due to government financial responsibility (such as the previous German government entrusting all this ... to Putin. Yes, really, that Putin) ... is climbing fast. One might add that one story is that the head of the government that entrusted German energy to Putin was threatened during an official visit to Putin ... by Putin setting dogs on her (he had read she was terrified of dogs) ... she STILL went through with entrusting the energy infrastructure to Putin. Then Ukraine blew up a major part of the infrastructure Putin built. You can't make this up. Personally, I'm the sort of person that if someone sets dogs on me ... anything after that is going to be a tough sell.
So now poor people effectively have an extra tax in high electricity prices that are climbing fast (the increases are now down to 5x the rate of inflation. Yes, DOWN, that's correct). Oh and to make matters worse, as the article points out, it's become ever easier to get off the grid. Which means the people served by the grid ... still dropping. Not just houses in suburbs are disconnecting, but city houses as well. And there may be other reasons. It's green. Or my favorite: the Israeli reason (these people are brilliant and insane). Convincing people to buy solar power because ... it does not disconnect in case of war. Apparently it's popular in Arab countries too.
Since this allowed past governments to spend more money, they now have no problem spending a less, or paying that money back, of course. Yes, that last sentence was a joke. No, in reality they're coming up with ever crueler and more forceful methods to make sure poor people pay the extra tax, such as making it non-dischargeable. Making it a crime to disconnect from the grid. To take it out of unemployment benefits before the person sees the money. To threaten everything a person has in case of non-payment (e.g. school subsidies for their children). Etc.
It isn't working.
Oh and that this debacle, which is entirely the decision of the currently in power party, even if the head of the government was swapped, is driving people in droves to other parties (ie. AfD), is the fault of Zelensky, Putin, Musk, Netanyahu ... and frankly everyone ... except of course the party that actually did it.
I used to build microgrids and work closely with utilities - generation, transmission, and distribution. This was probably 15 years ago, but they talked about the 'solar death spiral' even back then.
In my opinion, a lot had to do with how they set retail rates. The retail electric companies set different rate categories and tiers. Most residential customers don't realize that they're often subsidizing commercial and industrial customers. So, of course there's going to be a death spiral when those residential customers decide to generate themselves.
Industrial power consumers are billed differently - so it could be more or could be less. The bills are more complicated - industrial customers will generally pay for things like power factor, capacity, demand, time-of-use rates, tiered rates, etc. On a per kWh basis it would depend from customer to customer. If you had a factory that operated overnight for whatever reason, their electricity would be very cheap.
Weird, I didn't read it like that at all. The article really just comes off as an explanation of the effects of decentralized solar on existing utility companies. It doesn't ever say that solar installers are bad.
In fact, it even somewhat welcomes it by pointing out that the competition utility companies now face will force them to offer better service.
> Instead the entire paradigm of centralized generation may need to be called into question and we should instead be focusing on a hybrid centralized baseline + local generation and storage
I don't think that moving the generation around is really an "instead", because the problem at hand is that distribution is expensive and someone has to pay for it if you want a grid. And most of that cost is the local stuff.
So how do you get everyone connected that wants to be, without it costing them a ton of money? You might have to make the grid cost into a mandatory tax.
Whether the electric company is private or state-owned is mostly a separate issue.
I don't think there is a viable answer to that. The thing is a lot of what we pay for with the grid is reliability. Until rates are set up in a fashion to properly express that we will have problems.
Wind and solar reduce fuel use, but they make for very little reduction in required infrastructure. Thus the value to the utility company is approximately the value of the fuel that's offset minus the costs of handling the situation.
Combine these and you see that the true value of wind and solar is pretty low other than from an environmental standpoint of reducing carbon emissions. (Now, if you have a use case of something that's power intensive but can freely be turned on and off then there could be some appreciable value.)
It’s not 100% “instead”, but equally it’s not 0%. A grid with more distributed generation (and storage and load flexibility) can be smaller and cheaper.
This is almost what is happening. Rate payers are paying less and less in order to compensate for production cost, and increasingly more in order to be connected to the grid and that the grid is stable. For the moment that cost is mostly attached to how much energy is consumed as a matter of billing, but that can change.
Rooftop solar with storage and a grid disconnect is fine. The problem comes about when people expect the grid to be there during the 5% event but otherwise be free (or even worse, that the utility be required to pay them for low-value power that overloads puny distribution systems during undesirable generation hours. It's a matter of economics - centralized generation, transmission, and distribution is expensive. Someone's got to pay for it if we want it to exist. A lot of people crow about their great solar setup and don't talk much about the power that they pull from the boring old grid.
If we're ok with everyone being an island or building a system capable of massively distributed generation, great. It will be massively more complex, less efficient, and more expensive to maintain. Let's just be honest about the nature of the problem.
You are reading that very narrowly. The paragraph is simply pointing out that solar power is cheaper when built out in a centralised way because of:
* economies of scale for construction and maintenance
* higher utilisation. They don't spell it out exactly, but it is pretty clear fro m the context that, "lots of self-generated power will ultimately be wasted", is eluding to a wider geographic area needing more panels to satisfy all demand when each house has an independent system, rather than being grid tied.
I think this is true of a lot of things that are 'in our house' (or on our property). A fatuous hypothetical example might be a large central refrigerator shared between multiple properties.
The apartment building I live in has large central boilers for the hot water, to save space in the apartments. This benefitted the property developer, and is probably more energy efficient (although, just like our solar power example, transmission loss needs to be accounted for), but has downsides for the apartment residents.
A better example is private vehicle ownership, as opposed to public transport. It's a good example of something that has moved from a more centralised control to individual control, with benefits and downsides.
What's the downside of the central hot water? (Or heating.)
I've lived in buildings with this, and others (houses) without, and I much prefer the former. There's nothing I need to maintain, and the 'big' version seems to be more reliable than the single-house-sized heating equipment. The one time I remember the hot water being repaired, the janitor stuck up a note explaining that due to some sort of redundancy we'd still have hot water, but it would be less hot than it was supposed to be.
This wouldn’t be true in modern buildings, but in our case the hot water supply isn’t reticulated, and I’m at the ‘end of a (pipe) line’ so if no-one else sharing the same hot water pipe as me has run their hot water taps for a while, it can take 4 minute to get hot water in the shower.
This was bought up in a body corporate meeting several years ago. The cavities that the pipes run through are small enough that a reticulated system would be hard to retrofit. The suggested (tongue-in-cheek) solution was to “wait until you hear your neighbour showering before you have your shower.” Haha - thanks.
Solar panels use energy to create, and have a finite lifespan. If energy is generated but not used, it makes the average lifetime efficiency decrease. This does result in wasted energy.
Almost every innovation along the way to amazingly cheap solar has involved wasting more energy.
Note, I said amazingly cheap, not efficient. We have more efficient solar options but they're in the lab waiting for a breakthrough to make them cheaper or being replaced in the market with options that waste more and cost less per useful watt delivered.
The Economist did a whole issue recently about how amazing solar is and how it is changing the world but they've been mildly climate skeptical for years platforming frauds like Bjorn Lomberg and it still leaks through in their writing, even if they've switched to "solar being too cheap is bad" from "solar is too expensive to help".
Solar is competing against systems that pay for their fuel directly and which still turn two thirds of it to waste heat.
This is only true if the “generated but not utilized energy” is larger than the “total generated and utilized energy” + “total energy to create the panel”. Of courses, this is totally implausible as the lifespan of a typical panel is between 15-20y, and this is enough time for the inequality to turn good for using a panel.
Understood, and I agree. We could make this argument about other utilities too, e.g. mains water vs having your own water tank, public transport vs private cars. I guess municipal water supplies don't face the same 'existential' crisis, but public transport certainly has suffered with the rise of private car ownership, irrespective of the benefits that the latter has bought to individuals.
The electricity is switched off. If the system is fancy, maybe it's on a lower duty cycle. The panels just sit there, rotting, wasting their embodied energy.
> This is like saying, "I bought a car and don't drive it." -- which people do.
Well, it is, but in the same sense, if you own a car for a long time and don't drive much, your per-km costs end up high (due to car components wearing out from age rather than mileage) and your essentially fixed costs (insurance, etc.) end up proportionally greater compared to truly variable (gasoline, etc.) costs.
And if you really don't drive much, you get additional problems; the typical recommendation is to drive a car a minimum of a continuous 20 minutes every couple weeks.
The other grid operators have to lower their production during the day. That itself can be expensive, but more importantly they run their same equipment to power fewer hours of the day; when solar is not available, which is expensive since they have significant fixed costs. Batteries are not a grid scale solution any time soon, but maybe one day.
You can also adjust energy prices to shape demand. It's not like baseload power plants have ever had constant demands there's always a curve.
The solution is of course a mix. Solar/wind/hydrogen/gas/etc., big grid/home systems. It will require grid upgrades.
Batteries are already happening [0]. And electric cars + home solar systems with batteries have a further ability to allow additions to this at scale if the grid supports it
In 2010, someone sticked some battery shortcoming knowledge (e.g., not grid scale) into their head, but it takes double the amount of energy to update it today.
What we see at grid scale are batteries being used for quick response power while other generators are being spun up. The thing is the grid very much doesn't like it when demand exceeds supply. Systems shut down to protect themselves and you either dump loads very quickly or suffer a cascade failure (see the 1965 blackout--and note that that only stopped growing when the operators were able to dump enough load.)
Since this is in disaster territory the utilities obviously try to avoid it and ensure there's always enough to cope with any surges--which means they must have more stuff spinning than they actually need. Enter facilities like the big batteries: keeping them hot costs almost nothing and they have a very fast response when called upon. This buys the utilities time in which to spin up other generators and thus allows them to operate with less waste.
... you started your comment with "batteries are not a grid scale solution" and then you described one of the primary reasons batteries are useful at grid scale.
I don't get it, did you put an extra "not" in your opening sentence?
It was an infrastructure investment with the idea that it returns an expected amount of energy over an expected life and an assumption that that energy has a value that makes it pay for itself in X years.. If its not worth using a lot of that energy that's a first slide.. A much further slide is when the energy to produce it is never paid back in what it produces, which can be considered true for the enormously over provisioned.
One just needs to align supply with demand. But since the centralized model doesn’t like such a “decentralized” idea, they cast the problem as something impossible to be solved, which is very funny I have to say.
Unlike the economist I know something about accounting. If there is excess power at zero marginal cost someone cunning is already planning on making some coin off it. As it is utilities with excess solar and wind are rapidly adding battery storage.
I think there are three stages of renewable development. The first stage renewables partly offset traditional suppliers. The second stage is you actually have excess part of the time. And the third stage you have a lot of season excess. China and Texas are in the first stage but California is in the second stage already.
> If there is excess power at zero marginal cost someone cunning is already planning on making some coin off it.
I'm not sure it's that simple as evidenced by the ever increasing hours of negative electricity prices.
As far as I know, there are so far no good applications for short bursts of negative prices. Everything that would love those is so capital intensive/high fix costs that even 10 or 20% utilisation rates at negative prices are not enough to make it economically viable.
Season excess is also a big problem. Batteries to smooth the days/nights cycles are fine, you can use them ~365 times a year. But a battery to smooth out summer/winter cycles can only be used once a year!
Exactly. This statement quite really does not make sense as this is literally how electricity works with grid too, since you need to have a reserve margin
I do find the rest of the article more or less balanced in the discussion of the issue, even though it tries very hard not to actually squarely put blame where it lies
No, Dyson spheres is short term thinking. What we really should be doing is breaking up the stars and storing they hydrogen for future use. Just allowing fusion to happen and radiating the energy away is inefficient and wasteful.
I think the end game is that people that realize they have to live on this planet will disconnect from the grid (because it is cheaper) and use that waste electricity for direct atmospheric carbon capture (because terraforming is our only remaining viable path forward).
If that means the grids go bankrupt and default on payments to the fossil fuel industry, then I will try to pretend to be very sad for at least 60 seconds.
The group of people that will ultimately benefit from this includes just about everyone except the octogenarian plutocrats that are actively accelerating climate change.
Maybe once they die off there will be some financial incentives to help repair the atmosphere (assuming life extension technology doesn’t doom all of us to living with their immortality).
Over-produced electricity can be stored by the private party in a local vehicle/wall battery.
Through a grid it may be sent to a plant which will produce green hydrogen, or to a dam (pumped-storage hydroelectricity)... or sent to another region (even quite remote, via some (U)HVDC line) which will use/store it.
The solution is obvious and cheap. You don't need powerwalls in 2025 all the major backup battery manufacturers now make $3-4k models which you can wheel around and can take your excess with zero conf off the shelf.
Yes, because the solar cells aren't free. They have an environmental and monetary impact while not lasting forever. If you don't use them, you are wasting them.
This is sunlight falling on a roof. If you convert it into electricity but then don't use that electricity, is it really a waste? It's like saying that the overflow from my water tank that collects rain water off the roof is 'wasting' water.
It could be argued that it's a waste in the sense that the generated electricity could have gone to someone else if there was a grid, but if the grid operator isn't allowing excess to be put back into the grid (e.g. because there's no demand at that time because it's sunny and everyone is using solar), then the grid operator needs to solve that with some form of energy storage (e.g. batteries).