Well, it is a subsidy that’s being cut back.
If that residential solar installer doesn’t know how to sell complementary residential storage, he’s shooting himself in the foot.
Apparently there’s a new process for making cement that uses electricity instead of fossil fuel. Lots of cement is needed everywhere. Use surplus power on that.
For a second opinion, Enact Solar discusses California’s new rates for home solar and has this to say:
“What is the payback period for California homeowners under NEM 3.0?
Research using the Enact platform found the payback period under NEM 3.0 for residential solar in California is 4.8 years in 2024. This means that homeowners who invest in solar panels under NEM 3.0 can expect to recoup their initial investment in less than five years through savings on their utility bills.
Additionally, for solar-plus-storage customers, the payback period is slightly longer at 5.5 years in 2024, compared to 7.6 years for customers who signed on in 2023. This indicates that the return on investment for solar-plus-storage systems is improving over time.
These figures are based on an 8 kilowatt solar system with 100% energy offset, priced at $2.90 per Watt, with a storage add-on priced at $13,000 for a 10 kilowatt-hour battery, fully installed.”
Yes, it’s great for the homeowner who’s probably still getting a subsidy buy not paying for the congestion burden that his peak solar is adding to the grid.
The system is in transition. Just as utilities had to build expensive giant hydropower batteries to time-shift the monotonic load from nuclear power plants (too expensive to shut them down at night), the utilities are making adjustments.
This is one case where the market will find plenty of things to do with all of that cheap energy (besides mining the !&@# bitcoins).
Back in the 1980s city utilities were getting buildings to make ice overnight to cool the buildings during the day.
Well, it is a subsidy that’s being cut back.
If that residential solar installer doesn’t know how to sell complementary residential storage, he’s shooting himself in the foot.
Apparently there’s a new process for making cement that uses electricity instead of fossil fuel. Lots of cement is needed everywhere. Use surplus power on that.
No surprise there. When you get to a certain fraction with solar, you’re stuck. You run into a brick wall. All you can do is add expensive storage.
For a second opinion, Enact Solar discusses California’s new rates for home solar and has this to say:
“What is the payback period for California homeowners under NEM 3.0?
Research using the Enact platform found the payback period under NEM 3.0 for residential solar in California is 4.8 years in 2024. This means that homeowners who invest in solar panels under NEM 3.0 can expect to recoup their initial investment in less than five years through savings on their utility bills.
Additionally, for solar-plus-storage customers, the payback period is slightly longer at 5.5 years in 2024, compared to 7.6 years for customers who signed on in 2023. This indicates that the return on investment for solar-plus-storage systems is improving over time.
These figures are based on an 8 kilowatt solar system with 100% energy offset, priced at $2.90 per Watt, with a storage add-on priced at $13,000 for a 10 kilowatt-hour battery, fully installed.”
That from here: https://enact.solar/is-solar-still-worth-it-for-homeowners-under-nem-3-0/
Yes, it’s great for the homeowner who’s probably still getting a subsidy buy not paying for the congestion burden that his peak solar is adding to the grid.
The system is in transition. Just as utilities had to build expensive giant hydropower batteries to time-shift the monotonic load from nuclear power plants (too expensive to shut them down at night), the utilities are making adjustments.
This is one case where the market will find plenty of things to do with all of that cheap energy (besides mining the !&@# bitcoins).
Back in the 1980s city utilities were getting buildings to make ice overnight to cool the buildings during the day.