Isn’t that a self defeating loop.

Great profit to be had from solar because of expensive gas.

Let’s put aside that this isn’t good for the end user, as it openly admits the whole point of solar is great profit, rather than savings for the end user.

Soon there’s no need for the expensive gas.

Where’s your profit margin not?

▲ istjohn 7 hours ago | parent | next [-]

> Let’s put aside that this isn’t good for the end user, as it openly admits the whole point of solar is great profit, rather than savings for the end user.

The whole point of capitalism is that in a well-regulated, open, competitive market, an ecosystem of companies pursuing maximum profit drive down each other's profit margins as they compete for a limited pool of consumers. In other words, it is precisely the profit motive that creates savings for the end user.

▲ glenstein 6 hours ago | parent [-]

Exactly. The same principles that apply for solar energy are already in place for natural gas and for every other form of energy and the fundamental logic of markets is that there's a price point consumers will pay that's also profitable for the company.

That didn't newly become an issue for the first time once solar entered the picture. There should be a word for this type of argument where people relitigate settled principles because they're discovering them for the first time.

▲ jabl an hour ago | parent | next [-]

Even more generally, this applies to commodity markets. Price of potatoes is x EUR/kg, set by supply and demand. If some farmer can produce potatoes for 0.1x EUR/kg, they get to make a good profit.

Now electricity wholesale markets are an artificial construct, but it has been designed to mimic other commodity markets in that the producer on the margin sets the price.

▲ nandomrumber 2 hours ago | parent | prev [-]

It’s not like I’m discovering the concept for the first time.

I just think when people say things like “solar is cheaper than gas” they should say for who.

Solar is cheaper than gas for the capitalist.

And there’s no guarantee the capitalists savings will ever be passed on to the consumer.

In my market, Australia, the energy retailers are regulated to increase prices once a year. Increase prices. Never a saving for the retail customer. They’ve worked out that can skip all that messy market bullshit and just regulate annual increases.

Good work if you can get it.

▲ defrost 2 hours ago | parent [-]

> In my market, Australia, the energy retailers are regulated to increase prices once a year. Increase prices. Never a saving for the retail customer. They’ve worked out that can skip all that messy market bullshit and just regulate annual increases.

Have you actually read the regulation?

  The AEMC said the new rules were in response to requests from Australia's energy minsters. They will:

    * prevent retailers from increasing prices more than once a year
    * ban excessive charges like late-payment fees for all retail contracts
    * ensure all consumers are entitled to a fee-free payment method
    * prohibit retail fees for vulnerable consumers
    * ensure vulnerable Australians are receiving their retailer’s best offer
    * prevent retailers from charging more than the standing offer price if the customer's initial offer changes or expires. This will protect customers from paying higher prices for their loyalty.

  The rules to improve consumer confidence in retail energy plans will come into effect on 1 July 2026. Those that assist hardship customers take effect from 30 December 2026.

There is a difference between

A) regulation that forces a price rise once a year.

and

B) regulation that stops more than one price rise (if any) in any year.

▲ glenstein 6 hours ago | parent | prev [-]

If solar is cheaper to produce (which it often is), there's room for undercutting natural gas and room for profit, a mutual benefit to customers and the solar industry where only natural gas loses.