> He noted that the term “solar subsidy” can be misleading, as it implies that every kilowatt-hour of solar electricity fed into the grid is fully funded by public money.
> The IWR explained that Germany’s Renewable Energy Sources Act (EEG) operates on a differential cost model for new photovoltaic systems. Under the mechanism, electricity generated by solar installations is first sold on the power exchange, with the resulting market revenues credited to the EEG account. Only the difference between the market price and the statutory feed-in tariff is compensated through the EEG account.
Wait, this is still being subsidized by taxpayers? And Germany has some of the highest energy prices in Europe?
I feel like I'm taking crazy pills. On the one hand folks are happy to tout solar and wind as "the cheapest energy you can get" and on the other we have the market realities of what consumers and taxpayers are paying. There's a policy failure somewhere if the cheapness to produce energy this way is not being reflected in the market and subsidy structure. Does anyone have an analysis of wtf is going on?