Because of the merit order effect solar is reducing the overall costs of electricity sold on the auction market by 10% compared to what it would be without solar. That is coming directly out of the profits of the fossil fuel generators.
The daytime reduction is up to 40% but that is mitigated by fossil fuel generators increasing the price of what they charge for nighttime electricity.
This pressure to increase prices reduces the competitive position of fossil fuels. This makes the alternatives even more competitive and will serve to further reduce the market share for fossils - a process that eventually puts them out of business. Most of us think that is a very good thing and that it is a value worth paying for.
The increase in price to the homeowner attributable to this specific aspect of the policy demonstrates an inherent unfairness in the design of the program that favors industry (just what you'd expect from the pronuke/coal conservative govt), not that there is no consumer benefit from solar.
So if the merit order effect isn't what is responsible for the increase you are pointing to in the link, what is?
Simply put it is the success of solar.
They are installing almost 3X the amount of solar that was their goal when the program was established and these prices were set (which is what this OP is about). This necessitated increasing collections in order to pay for the volume of installed capacity. Note carefully that this equipment is in place and generating electricity.
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Now, I have a question for you. The ratepayers of Georgia, South Carolina and Florida are all being or getting ready to have their electricity prices raised now to pay for nuclear power plants that, if they ever get built at all, will not begin producing electricity until years from now when they would almost certainly be able to buy solar that will produce their power for less than the price of electricity from the not-yet-built nuclear plants.
What are your thoughts on the plight of those unfortunate ratepayers? Polling shows that we are far more willing to pay extra for renewables than for nuclear. You are extremely disturbed by the dastardly imposition of renewable costs on the poor, unfortunate exploited German ratepayer yet apparently have no sympathy for the poor unfortunate exploited victims of the nuclear industry in the US. At least the Germans are getting the facilities and electricity they are paying for.
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