Without large-scale battery storage, it’s impossible to match up solar power with actual electricity demand — a problem that’s only magnified when solar is scaled up.
“In the absence of effective storage capability, any subsidies, mandates or incentives for solar penetration above a 5-percent threshold are actively harmful to the reliability and economics of the power grid,” IER reported.
But that’s not all. The overabundance of solar power drives electricity prices below zero, meaning California pays other states to take their excess energy, suppressing wholesale prices in neighboring states.
Aren’t lower prices good? Yes, but we’re talking wholesale electricity prices, not retail rates. Utilities are actually costing their California customers when they have to pay other states to take more solar power.
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