Solar and wind subsidies getting axed a good thing?

[homeshow]

No government subsidies. So less people willing to switch or upgrade. More materials available. Industry gets more competitive prices drop? I think that residential solar especially DIY is so economical compared to power bills. The residential solar industry needs no help. Besides companies always charge more when government subsidizes anything. Of course tariffs are another factor.

 

[JustHank]

What is your opinion on net metering? In some ways, depending on the rates, it seems to be consumers subsidizing industry.

I think the other unintended consequence is that less work = fewer solar installation firms = local or regional oligolopies = fewer solar installation jobs = fewer solar workers = solar installation companies having more freedom to raise prices. And probably even fewer electricians willing to do partial work on a DIY system.

 

[Koyaanisqatsi]

Businesses are in business to make money. If the government is giving them money, then the products they sell will (should!) be cheaper, or at least the company will operate more closely to the necessary profit to stay viable.

I don't see how having a subsidy could possibly cause prices to rise. Eliminating the subsidy will cause prices to rise, for certain.

If we didn't subsidize agriculture, for example, we'd be buying apples for $5 each or a pound of burger for $25. I'm not saying certain industries need subsidies - ag certainly does or we would lose nearly all domestic farming - and I think a lot of companies get subsidies that shouldn't. AND I hate my tax dollars being used to line the pockets of executives. So, it's really a matter of the exact circumstances of the subsidized industry.

I'm almost certain the foreign solar panel manufacturers don't need any US subsidies, despite probably receiving a lot (I don't know). But I do think the domestic panel manufacturers do, so that we can ramp up domestic production and get on top of the game. Same for Lithium cell manufacturing. Honestly, once we get some level of good cell and panel manufacturing in the US, I say tariff the hell out of the foreign manufacturers and subsidize the domestic ones only for as long as necessary to get our domestic industry rolling.

 

[mciholas]

I don't see how having a subsidy could possibly cause prices to rise. Eliminating the subsidy will cause prices to rise, for certain.

The company can charge more for the same consumer "price", so they do.

The lower net consumer price drives up demand which raises producer prices.

Eliminate the subsidy and demand drops, so prices drop.

Every time bias is applied to an economic system, the system reacts to balance that force. In many cases, the bias applied has the opposite of the desired effect.

Mike C.

 

[SunDave]

Subsidies cause price increases in the same way as cheap loans do.

More money chasing fewer goods.

However there is no guarantee that the prices immediately become competitive if subsidies are minimized.

 

[homeshow]

Businesses are in business to make money. If the government is giving them money, then the products they sell will (should!) be cheaper, or at least the company will operate more closely to the necessary profit to stay viable.

I don't see how having a subsidy could possibly cause prices to rise. Eliminating the subsidy will cause prices to rise, for certain.

If we didn't subsidize agriculture, for example, we'd be buying apples for $5 each or a pound of burger for $25. I'm not saying certain industries need subsidies - ag certainly does or we would lose nearly all domestic farming - and I think a lot of companies get subsidies that shouldn't. AND I hate my tax dollars being used to line the pockets of executives. So, it's really a matter of the exact circumstances of the subsidized industry.

I'm almost certain the foreign solar panel manufacturers don't need any US subsidies, despite probably receiving a lot (I don't know). But I do think the domestic panel manufacturers do, so that we can ramp up domestic production and get on top of the game. Same for Lithium cell manufacturing. Honestly, once we get some level of good cell and panel manufacturing in the US, I say tariff the hell out of the foreign manufacturers and subsidize the domestic ones only for as long as necessary to get our domestic industry rolling.

Grocery stores have special size bottles of juice for WIC recipients. By the ounce the most expensive on the shelf. Same label same juice. Government interference is always problematic.