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Can solar costs keep shrinking?

unchartedterritories.tomaspueyo.com

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Re: Can solar costs keep shrinking?

#31

Earlier quoted context omitted.

Utility companies around me will gaslight you into not getting solar--bury you in paperwork, FUD, and last ditch efforts to buy into some kind of solar timeshare program. I'm hoping to see more decentralized/hyper-local power generation and storage.

>I'm hoping to see more decentralized/hyper-local power generation and storage With the scale we're dealing with decentralization does not work. You need to centralize for efficiency (i.e. optimize power generation and maintenance per unit of land-area). Though in this case the point is moot, since we don't have any grid-scale storage solutions for wind/solar - making them non-viable as the primary power generation r…

>decentralization does not work.

This is not quite true, because the vast majority of solar generation is consumed on site, avoiding the transmission and distribution costs of delivering electrons that would normally be necessary. Which is just one of a whole motley of dynamics working in favor of solar at larger scales: the arc of solar generation over a 24hr period almost perfectly coincides with actual market demand over the course of the day, with the exception of the afternoon/evening "duck curve", so it's actually relieving pressure on peaking generation.

The important fallacy here is assuming that counterbalancing for the cycles of solar generation requires new investments, when in fact it's relieving pressure on infrastructure that already exists and is already serving those exact counterbalancing purposes. This is in addition to the benefit of offsetting alternative forms of base load generation.

To be clear you are right in an important sense about a pretty fundamental thing. There is indeed a tipping point, and when we reach that tipping point of grid penetration all of the points you have raised will indeed become not merely relevant but crucial. And I forget the exact number, but my understanding is we're nowhere near that tipping point right now. I want to say around 20% of the overall grid being generated from solar power is the tipping point but I'm not sure if that's accurate.

It's kind of like the argument sometimes people want to make about taxes which is that if you overtax it is a drag on the economy, which is hypothetically true but it's true at a given tipping point and it's a tipping point that we're not anywhere near, which doesn't tend to stop the advocates from bringing it up all the time.

Re: Can solar costs keep shrinking?

#32
post #2

I'm having a hard time getting past the assumption in the article that energy use is tied directly to GDP per capita and that by not following the 7% growth of the Henry Adams Curve we're somehow below where we should/could be as a country. That embeds so many assumptions about the economy and where GDP comes from, the decoupling seems more likely to be from the transition from manufacturing and other energy heavy se…

>I'm having a hard time getting past the assumption in the article that energy use is tied directly to GDP per capita Why? They are correlated and so are reasonable metric to gauge progress when starting from a subsistence economy (as all economies in the world began). At some point, this may be less true when you hit a energy generation ceiling and you start 'optimizing' and trying to do more with the same amount ..…

We are there today: https://ourworldindata.org/energy-gdp-decoupling

Re: Can solar costs keep shrinking?

#33
post #2

I'm having a hard time getting past the assumption in the article that energy use is tied directly to GDP per capita and that by not following the 7% growth of the Henry Adams Curve we're somehow below where we should/could be as a country. That embeds so many assumptions about the economy and where GDP comes from, the decoupling seems more likely to be from the transition from manufacturing and other energy heavy se…

It also neatly corresponds with the mass rollout of nuclear power so it's possible it's just the classic measurement issue of "primary energy" vs "useful energy", sometimes called the primary energy fallacy, which makes fossil fuel based systems appear 4x (or probably more going back in time) better than they actually are.

Re: Can solar costs keep shrinking?

#34
post #11
post #3

These charts stop right at the point where the U.S. imposed tariffs on Chinese solar panels, and the tarrif schedule is only going up, to 50%. This matters because the future of solar is utility scale, where the panel costs dominate. So for the US, at least, solar costs will not keep shrinking in the short term.

Countries that impose tariffs on solar panels and EVs are really demonstrating that they don't actually believe in climate change being important, compared to good old bribes for corporate donors.

Yes but (as you already know):

Realpolitick, the political economy, remains important. The sausage factory. Tariffs are the hush money to secure the ongoing support for Bidenomics.

It's super important that every player has its own domestic production. Even if USA's (or EU's) total global market share Quid pro quo. China could liberalize their economy too. Allow foreign direct investment. Drop their own tarriffs. But they're not (yet?) willing to forfeit autonomy in exchange for "free trade".

--

I get what you're saying. I too agree that fighting climate crisis is our top priority. These slap fights are infuriating. But, for better or worse, you and I aren't in charge.

Re: Can solar costs keep shrinking?

#35
post #2

I'm having a hard time getting past the assumption in the article that energy use is tied directly to GDP per capita and that by not following the 7% growth of the Henry Adams Curve we're somehow below where we should/could be as a country. That embeds so many assumptions about the economy and where GDP comes from, the decoupling seems more likely to be from the transition from manufacturing and other energy heavy se…

>I'm having a hard time getting past the assumption in the article that energy use is tied directly to GDP per capita Why? They are correlated and so are reasonable metric to gauge progress when starting from a subsistence economy (as all economies in the world began). At some point, this may be less true when you hit a energy generation ceiling and you start 'optimizing' and trying to do more with the same amount ..…

The range is so wide though. Look at a particular narrow band of the GDP per capita and see how wide the energy consumption per capita is for even a very narrow slice of GDP per capita. The dispersion gets even wider as you get up towards the high end of the GDP axis.

The author asserts that we should see 5x GDP/c if we had 5x power usage per person and their own graph shows that that's not the case because it's a flawed assumption that ignores increases in efficiency and transitions away from energy intensive manufacturing to service based.

The best evidence for that is that the GDP/c didn't fall off when we fell off the HA curve. In fact I took the GDP per capita and Energy consumption per capita data from world data bank and the ratio between the per capita GDP vs the per capita energy consumption has been going up steadily since we stopped following the HA curve.

Between 1960 and 1970 the ratio between GDP and Energy Consumption per capita was essentially static at .74 then after 1970 the ratio begins to increase showing we're producing more per unit of consumed energy at a nearly linear rate. By 2014 which is the last year they had the Electric power per capita data the ratio was all the way up to 4.2. Eyeballing it the relationship is almost perfectly linear each year we get a little better at producing GDP for each kWh we consume.

I even redid the calculation based on raw energy use in kg oil equivalents and it gets even more drastic. 1960 to 1970 it goes from .53 to .69 GDP/kg oil equivalent [0]. Then after 1970 the rate increases quite distinctly going from .69 to 1.58 in 1980, 3.11 in 1990, 4.5 in 2000, and 6.79 in 2010.

It's pretty clear from the data that we're getting better at producing things with the same amount of energy. It's an assumption that simply making more power would increase the amount of things made.

Electricity use per capita: https://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC?locat...

Energy use per capita in Kg oil equivalents: https://data.worldbank.org/indicator/EG.USE.PCAP.KG.OE?locat...

GDP per capita in current USD: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?location...

[0] nice.

Re: Can solar costs keep shrinking?

#36
post #6
post #2

I'm having a hard time getting past the assumption in the article that energy use is tied directly to GDP per capita and that by not following the 7% growth of the Henry Adams Curve we're somehow below where we should/could be as a country. That embeds so many assumptions about the economy and where GDP comes from, the decoupling seems more likely to be from the transition from manufacturing and other energy heavy se…

>> That embeds so many assumptions about the economy and where GDP comes from YUP. Of course there is a strong correlation between energy use and GDP growth; it takes more energy to produce more stuff. But ultimately, what produces more stuff is harder to measure. To light the factories, more energy used to correlate with more light, until we swap out the incandescent/halogen lighting sources for LEDs. Then, we get m…

> Jevons Paradox, named for the 19th- century English economist William Stanley Jevons, who noticed that as steam engines became ever more efficient, Britain’s appetite for coal increased rather than decreased.

> Yet the amount of electricity we consume for light globally is roughly the same today as it was in 2010. That’s partly because of population and economic growth in the developing world. But another big reason is there on the Las Vegas Strip: Instead of merely replacing our existing bulbs with LED alternatives, we have come up with ever more extravagant uses for these ever-cheaper lights

NYT: The Paradox Holding Back the Clean Energy Revolution

https://archive.is/rb2DX

Re: Can solar costs keep shrinking?

#38

Earlier quoted context omitted.

> It takes more energy to produce more stuff Energy consumption is also about using that stuff. And in rich countries like the USA, a lot of energy goes to using things or just moving people. So it's possible to build more and use less energy, even if you don't reduce the energy cost of building things. They can simply become more efficient to use and move . In USA, 30% is just homes and commercial sector. 40% is tra…

>So it's possible to build more and use less energy, even if you don't reduce the energy cost of building things. In principle I can imagine that being true - but that's not represented in our world, so it is an open question if you can 'build more and use less energy' in the real world.

It's also irrelevant as anything other than a limiting case. The issue is with the statement that energy use must go up to produce more GDP or that not increasing energy use means we cannot raise GDP or even that GDP is limited by a flat energy use.

USA GDP is still on basically the same exponential curve, yet energy is flat. That's the counter example. The rest is exposition.

Re: Can solar costs keep shrinking?

#39

If labor costs keep going up, it seems like the right path for the industry is to simplify installation more so it becomes more DIY. More plug-and-play. Less skilled carpenters and electricians.

Labor costs for installing solar are already so ridiculous that you're better off doing the parting, delivery, and some installation if not all of it yourself and then having a licensed electrician just finish the connection to your main circuit breaker.

I regularly bring this up: modern fridges are generally continuous drive (which means they run off DC at some level anyway). And they run all the time(ish).

Waiting for a (mass-)manufacturer to build one with a 48VDC input that anyone can self-install a solar panel and plug-in but switches to a mains-fed 48VDC source as required.

Doesn’t need a battery (the fridge/freezer is one!), gets you some operation during outages, no license required to wire up. Takes advantage of whatever solar is available during the daytime without really wasting any.

Would also love a non-permanently installed doohickey that doesn’t require an electrician to legally install that will gladly push solar into a power strip and handle all the intertie stuff itself.

It shouldn’t be a “whole house or nothing” and a “completely islanded circuit or nothing” dilemma when wanting to partly solarize something. Which I guess Germany has allowed but regulations a big impediment in most places.

Re: Can solar costs keep shrinking?

#40

I used to be radically pro-nuclear, but after seeing some of the data of solar growth and realizing we could just scale things up (like building iphones), I'm fully on board with the Elon strategy of solar + powerbanks for storage.

The problem with nuclear is that it likes to be big, which means big capital-intensive projects and therefore a slow iteration time. Even if there are some things that are superior about nuclear, like land and raw resource use, it's going to get run over by a fast-iterating solution with small minimum capital investment.

At this point solar+batteries is a cheaper option in almost all locations except perhaps places with low levels of sunlight combined with high demand, like maybe very high Northern latitudes.

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