I have some initial thoughts after initial reading of Paul Levy’s piece on solar in MA, “Has the Mass. solar gamble paid off? Like other energy bets, costs high, hidden.” Levy’s introductory paragraph:
How much should we pay to promote solar energy in Massachusetts? Recent state government programs have resulted in the commitment of at least $10 billion of consumer funds—well over $1,500 for every man, woman, and child in the state. Is there a need for more government-directed subsidization, or have we reached a point of diminishing returns? Let’s look at the big picture.
and his conclusion:
What’s next on the list of well-intentioned financial mandates that will help reduce the risk for the developers of new energy technologies by passing along costs to the rest of us? Rest assured, the government will be asked to gamble with our money. And investors and advocates will do their best to keep things hidden so the rest of us don’t understand the costs they are asking us to bear. Some advocates now want unwarranted energy storage incentives. Some even argue for a return to expanded solar incentives. Let’s keep an eye on things and demand cost-effectiveness and transparency with regard to the amounts promised on our behalf.
There’s a lot in between. Unfortunately, he missed the big picture. The purpose of the “solar gamble” is to help transition us to using carbon-free (or at least carbon-neutral) energy not to save consumers money. The latter is a fringe benefit not the primary motivation. Levy misses the big picture because his focus is on financials. Money matters and how the costs of transition are shared – that they’re shared equitably – is important but leading with financials sets the wrong tone.
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