why generators are terrified of solar

[MorganPVI]

Why generators are terrified of solar - reneweconomy.com.au : Renew Economy

Germany seems to have it sussed!

 

[SolarCity]

Brilliant article. Thanks for the link.

 

[FB.]

So solar PV is bringing down the cost of electricity for everyone.

In which case, those who sell PV systems, basing their "this is how rich you'll get and how much you'll save on your bill as the electricity price soars into the stratosphere", calculations on the assumption of huge electricity price rises forever, may be found to be mis-selling.

I emphasise that it would be prudent for solar salespeople to assume that power prices simply rise in line with Bank of England's inflation target of 3% on the RPI.

 

[SolarCity]

In which case, those who sell PV systems, basing their "this is how rich you'll get and how much you'll save on your bill as the electricity price soars into the stratosphere", calculations on the assumption of huge electricity price rises forever, may be found to be mis-selling.

Possibly. And the corollary argument would be that those that install PV aren't being subsidised by others - in fact those that install a PV system are actually bringing electricity prices down for those that can't afford the initial outlay.

 

[SibertSolar]

Nice article, thanks for the link. Would have been more visually accurate if they had kept the same Y-axis scales on both graphs but the point made is evident!

 

[MorganPVI]

If your liking graphs The Oil Drum | Tech Talk - Saudi Arabian Oil Production: Part 2 read the comments too - very informative.

other links on the orginal story

The afternoon dip - 100% renewable - Renewables International
German Solar Bringing Down Price of Afternoon Electricity, Big Time! (More Charts & Facts) - CleanTechnica

 

[danesol]

What may happen though, I fear is that they will react to this quickly in the UK and may even put prices up to cover periods of "non use", therefore charging prem' rates for electric when Solar PV isnt on-tap as they still have to issue similar dividends to shareholders ??

Again ppl with Solar PV would be cushioned from this happening more so than without PV installed.........

 

[Glen Powell]

What may happen though, I fear is that they will react to this quickly in the UK and may even put prices up to cover periods of "non use", therefore charging prem' rates for electric when Solar PV isnt on-tap as they still have to issue similar dividends to shareholders ??

Again ppl with Solar PV would be cushioned from this happening more so than without PV installed.........

Have you not noticed this already? for years just before autumn announcements are made of fuel hikes of electric and /or gas then in March its good news the prices are coming down however never by as much as they went up by over the winter period.

 

[FB.]

Have you not noticed this already? for years just before autumn announcements are made of fuel hikes of electric and /or gas then in March its good news the prices are coming down however never by as much as they went up by over the winter period.

In fairness, power companies also have costs, such as input prices (oil, gas etc) and their workers who expect an annual pay rise.

According to data I have.......

UK wholesale electricity prices were 3.6p per kWh five years ago, and were 4.6p per kWh in recent months.
That's 28% increase in five years, or 5% annually.

The average UK electricity bill, in the same period, went from £400 per year, to about £520 new.
That's a 30% increase, or 5.4% annually.

Therefore, household electricity bills have risen roughly in-line with the increase in wholesale electricity prices.

.....and the underlying reason for electricity prices going up?
Commodity prices.

.....and the underlying reason for commodity prices going up?
Because the GB Pound is being steadily devalued. In recent years, there has been a near-perfect correlation between bouts of Quantitative Easing and commodity prices.

Stop the quantitative easing and the runaway commodity prices (and their knock-oin effects) will stop too. Just like the high interest rates around 1980 killed the commodity boom and gradually brought inflation under control.

 

[The Solar King]

If you look at DECC's own quarterly figures that feed in to RPI and CPI, you will find the average annual inflation rate is over 8%.