The article doesn’t include the word “baseload”, which is an important consideration. Utilities pay more for peaker capacity. For the same reason, market pricing regulations need to encouraging sources that provide a base amount of power despite weather conditions: network reliability and security of supply are valuable. (Let’s ignore Texas though). In New Zealand, we are dependent on seasonal rain for our hydro-powe…
Main reason: end-user subsidies of any kind (whether for cars or for rooftop solar or $asset) are merely a transfer from poor taxpayers to high-income or wealthy people, those who own their homes or can afford to purchase the asset. They entrench inequality.
I'd be able to tolerate subsidies if NZ funded them with a smallish fraction of a capital tax/land value tax and/or a capital gains tax. (Such taxes being recommended by the Tax Working Group but rejected by successive governments).
The idea of low-income people buying EVs is ludicrous. The typical budget for a "good" car where I work is NZD $2000 - $6000, and it's a very significant purchase.
Second reason. NZ doesn't actually have a lot of land suitable for solar that doesn't have higher-value uses, but it does have a lot of wind, and wind power can share land use. Although wind is not as cheap as solar, it's cheaper than everything else (except already-built hydro). Wind farms are being built now in unsubsidised projects with ordinary commercial leases from land owners.
Bonus reason: hydro operators don't need subsidies; it's worth them installing some solar on their lakes today. They are merely as anti-entrepreneurial as the governments.