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Why Elon Musk's Batteries Frighten Electric Companies

JoeyRox writes: The publicized goal of Tesla's "gigafactory" is to make electric cars more affordable. However, that benefit may soon be eclipsed by the gigafactory's impact on roof-top solar power storage costs, putting the business model of utilities in peril. "The mortal threat that ever cheaper on-site renewables pose" comes from systems that include storage, said physicist Amory Lovins. "That is an unregulated product you can buy at Home Depot that leaves the old business model with no place to hide."

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  1. Re:Are they really that scared? by TWX · · Score: 5, Interesting

    the local power company, SRP, is attempting to get permission to charge an insane amount of money for a solar home to be connected to the grid. They're trying to scare-off home solar by making it as expensive or more expensive than being grid-connected. In the middle of the desert.

    If nighttime storage issues get resolved, many homes won't need to be on the grid here, as our peak power use is also the time of year with the longest daylight hours and the highest demand is in the mid-afternoon when it's hottest and the HVAC units are running. If they get solar and battery tech going well enough that we can generate all the power we need at-peak and still have enough for nighttime use, then customers won't need the power company anymore.

    I am strongly considering this. I have a room that is climate-controlled but not part of the house that could be a battery and inverter room, and I've got enough land that I could install a demand-load generator if my demand or nighttime use peaks above production or storage capability. The only significant downside is that I have no natural gas service, so I would have to have fuel delivered for the generator.

    If I had natural gas service I wouldn't think twice about going solar for electricity and getting off-grid for electricity service.

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    Do not look into laser with remaining eye.
  2. Re:Are they really that scared? by tompaulco · · Score: 5, Interesting

    won't need to be on the grid here

    Don't worry, they'll almost certainly add being connected to the grid to be a mandatory part of the housing code or something.

    The local trash monopoly did something similar. Trash service is about $60 a month, but you can take your trash to the landfill for $15 per ton. Some people were opting to take their trash to the landfill. So the trash company, which works under city contract, got the city to condemn houses which were using the competitive service. This happened to one of my rent houses. I had to pay $800 in back trash payments to get the house uncondemned and the tenants had to pay stiff fines and could have gone to jail for "creating unsanitary conditions". ie, for disposing of their trash through a competing trash service.

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    If you are not allowed to question your government then the government has answered your question.
  3. Re: Are they really that scared? by Lumpy · · Score: 5, Interesting

    yes they do. Around here you can not legally live in your home if you do not have electrical service at your home. it specifically says, electrical utility with an active account.

    Also they fight like hell to make it illegal for solar installations to have grid interties.

    They dont want you to be off grid, as you dont make them money.

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    Do not look at laser with remaining good eye.
  4. Re: Are they really that scared? by lgw · · Score: 5, Interesting

    Yes, and? The Electric companies have no love of coal or anything else. They'll make power however it's cheapest to make it, limited in their ability to switch to new powerplants by the NIMBY problem, and limited in their ability to improve existing plants by the crazy perverse incentives in the environmental regs in most places. Natural gas is incredibly cheap right now, and generating would switch to it completely if it were practical.

    (I had college roommate who was an environmental engineer who worked for a while in this area. It drove him out of the field - you can't improve anything, even simple cheap ways to dramatically reduce smokestack pollution, without losing the "grandfathering" and having to pay more than the plant is worth to completely modernize every single component. And what's worse, the requirements for new plants weren't "get emissions below X" , they were often "you must use this exact emission control device, coincidentally manufactured primarily by someone close to the lawmaker at the time the law was made".)

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    Socialism: a lie told by totalitarians and believed by fools.