The withering dream of a cheap American electric car

I took advantage of the IRA solar power and $7500 EV credit, now I have an off grid home all electric appliances and excess power for hot tubs and EV's. The Ford Lightning acts as a generator. This was the greatest most life changing and impactful legistlation ever: I've had $0 (ZERO!) in gasoline, LP, and electric utility bills since installation last year.

Does your state pay you retail for your production? And have you gotten your first annual true up bill yet?

That setup is a dream for a lot of people, but it's not always easy to make happen depending on state regulations (and how powerful the utilities there are)...

I disconnected from the grid entirely so there is no bill.

Since the local power company here is only paying 10 cents per kw for solar power (which they resell at greater profit), I decided to run a small crypo miner and I still have excess power on a 22kw system.

I don't know of anywhere where its not legal to be solar powered but there were several thousand in costs associated with engineer plans and permits.

> Since the local power company here is only paying 10 cents per kw for solar power (which they resell at greater profit)

I think this is a common reason for disappointment in solar incentives. At least half of your power bill pays for transmission, and the half that pays for generation needs to be constructed such that the overall supply must meet the demand at all times, rather than simply supplying a number of kWh per day regardless of instantaneous demand. You can’t consider the “price” per kWh that you pay commercially to be the value of supplying a kWh to the grid, it’s much more likely that the utility is making a (subsidized) loss paying you 10c per solar kWh.

I'm not fully sold on this reasoning.

Electricity on the local distribution node has a value equal to the cost of generation plus the distribution. That's the value of it, what we pay. So by supplying the kWh locally to neighbors, the grid costs have been avoided. But the value is still the same.

Now, the T&D infrastructure has already been built, and the utility wants to get paid no matter what, but if they were a private company and not a monopoly, they wouldn't have a right to get compensated for their investment no matter what, because every company buys capital at risk. And that's for the good of the economy.

There needs to be some sort of forcing function to incentivize this cheaper form of power delivery, that avoids a lot of transmission and distribution costs. And that forcing function is the price that we pay those who generate the electricity.

The utility of course loses on every kWh they don't generate, because they want to sell more electricity. However, since they have a monopoly, we need other regulation to ensure that innovation that results in lower overall costs actually results in lower prices for consumers.

So far, the utilities have snowed the public and the PUCs such that they get away with murder on this transition. We need a grid, but we do not need the utility. And if the utility can not come up with a business model that works as a regulated monopoly when we have local generation, then we need to change the regulatory model, most likely eliminating the monopoly.

There's a lot to learn from Texas here for the rest of the country.

Your excess solar power is not worth the retail power cost because it is not as reliable or plentiful as utility power. If you think your neighbor would pay you the same rate for your unreliable excess power as they pay the utility, you should start a power company!

The infrastructure has not “already been built” - it is constantly under expansion and maintenance, and the bonds used to fund construction also need to be repaid.

I think your mind frame is that the reason the grid is not smart enough to pay you what you think your excess unreliable power is worth (which you stated to be the entire retail cost of power, including transmission and distribution) is because of incompetence and corruption of the utility monopolies. I think that is a pretty uncharitable take. It’s a hard problem and people generally want reliable and cheap. You can’t make microgrids reliable and plentiful without a ton of diverse generation (which already exists on the macro-grid) OR a ton of storage, both of which are very expensive. It is a problem worth solving but it needs to be considered with a realistic view on what people are actually paying for when they pay their power bill.

My frame of mind is that residential solar has the potential to dramatically reduce transmission and grid costs, but there is no way to force the utilities to shift to that model, because they will make less money. And regulators are asleep at the wheel and beholden to the utilities they regulate.

Grids are sized for peak, and without solar that peak is midday in most places, meaning that distributed behind-the-meter solar makes the grid cheaper.

Utilities, when they argue that solar is worth less, are not arguing on the merits of the issue but only selectively advancing arguments that benefit them. They will never present the totality of the issue.

It is up to others to push back against utilities' narrow views with a more complete view of the picture and what's possible.

I think you've still got too much of an "us vs them" mentality about the utilities, its not so much that they are refusing to shift to that model per se, these shifts are ongoing and happening today (which is why you're getting paid 10c per kwh for unreliable solar, IMO definitely more than it's worth), but I think a lot of people have unrealistic expectations with how far things can be shifted without addressing the implicit assumptions, such as the reliability of the power. Like, if we downsize the transformer between your subdivision and the grid by too much, that subdivision will have brownouts on cloudy days. In order to avoid that, we could deploy industrial scale battery packs, which also costs a ton of money and requires ongoing maintenance; at that point, it's probably cheaper to just use a bigger transformer to connect to the greater grid, where we have nuclear, hydro, wind, commercial solar, and hydrocarbon generation, which can all be used in different situations to match the grid demand with supply on a larger economy of scale.

In conclusion, the retail price of your electricity includes the engineering and infrastructure required to make your power delivery reliable most of the time, which is much more valuable than the raw kilowatts coming off of your solar panels.