> Which costs are they able to externalize by building grid scale solar
The biggest one is transmission. Most utilities have an arrangement where they can receive a certain return from customers with new capex. No large-scale transmission is required for rooftop installations.
Thanks for the book recommendation. I'll have to check it out.
> "customer incentives"
Correct. Customers are incentivized to use as little as possible and therefore save money. The utilities are incentivized to get customers to pay for new projects to earn a guaranteed return. And if a customer overgenerates their credits in a net metering scenario? Typically this is free energy to the utility. No payout.
The biggest one is transmission. Most utilities have an arrangement where they can receive a certain return from customers with new capex. No large-scale transmission is required for rooftop installations.
Thanks for the book recommendation. I'll have to check it out.
> "customer incentives"
Correct. Customers are incentivized to use as little as possible and therefore save money. The utilities are incentivized to get customers to pay for new projects to earn a guaranteed return. And if a customer overgenerates their credits in a net metering scenario? Typically this is free energy to the utility. No payout.