Solar Energy And Electricity Costs -- November 24, 2025

Locator: 49793SOLAR.

Link here. 

Electricity rates by state, link here, composite, all sectors (residential, commercial, industrial, transportation):

Most expensive (Hawaii is not included for obvious reasons): 

• California: 29.31 cents
• Connecticut: 26.83 cents 

Least expensive:

• Wyoming: 9.91 cents
• Idaho: 9.86 cents 
• Louisiana: 9.61 cents
• North Dakota: 8.42 cents

Despite subsidies, link here:

So, taxpayers high prices for electricity in California as usage of solar energy increases, and those same taxpayers pay to subsidize solar energy.

Narrative, California:

California's electricity costs have risen significantly over time, with rates increasing at a much faster pace than general inflation in recent years. 

Average residential rates grew by 47% between 2019 and 2023, and some customers experienced annual increases as high as 23%. 

These hikes are driven by factors like necessary grid upgrades and wildfire mitigation, and have outpaced general inflation since around 2020. 

Historical cost changes 2019-2023: 

• the average residential electricity rate increased by 47%, far outpacing inflation. 2001-2020: 
• the average commercial retail price of electricity increased by approximately 3.5% per year. 2018-2022: 
• one customer's electricity costs increased by 37% in just five years. 2020-2023: 
• California's electricity price inflation averaged 15.3% during this period, which was 271% higher than the general inflation rate. 

Not one mention of cost of electricity based on source: coal, natural gas, solar, wind. 

Saudi Arabia's Break-Even Price $92; Will Drop To $80 In 2017 -- December 7, 2016

Pearl Harbor Day. See first comment and then this link: https://www.washingtonpost.com/local/one-died-at-pearl-harbor-the-other-lived-seventy-five-years-later-theyll-be-reunited/2016/12/05/79fdeee8-aaa0-11e6-977a-1030f822fc35_story.html?utm_term=.f4033163311e.

Trump: Time's magazine person of the year. 

The Recount: Day five of the Wisconsin recount is complete and Trump has gained 84 votes, while millions of dollars and countless hours of time are being squandered.

North Dakota is ranked #6 among all global crude oil plays for 2017 crude oil exploration  (posted previously). Of the 96 global crude oil plays, North Dakota is #6, Iraq (Kurdistan) is ranked #77, practically at the bottom of the list. Does that ranking matter? Let's see. 

From Reuters:

Exxon Mobil has pulled out of half of the six exploration blocks it operated in the Kurdistan region, the Iraq Oil Report reported. The oil company has walked away from its operations in the Qara Hanjeer, Arbat East, and Betwata blocks.

XOM is active in the Bakken through its subsidiary XTO which is the #2 operator in North Dakota based on net acreage. The breakeven price for Saudi Arabia is currently $93 and is forecast to drop to $80 in 2017. The breakeven price in the Bakken in the best spots currently active is well below $50.

And except for the DAPL, no wars are being fought in North Dakota.

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Brilliant

Trump is simply brilliant. After getting "everyone" excited about the Taiwan telephone call, he announces the nomination of Iowa governor Terry Branstad to be the US ambassador to CHINA. After alarming everyone with his Taiwan telephone call, he rewards CHINA by putting them at the top of the list: the first country to have the US ambassador named (after the US ambassador to the UN). This reassures China that their country is #1 on Trump's list of important countries.

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Global Warming Page

Cold records being set across the US. Much earlier than ever before. This follows Blanche, and so far, this "storm" is not even named. Chicago breaks 1940 snowfall record and the "storm" will continue. Seattle could see half of its annual rainfall in one day. Temperature plunge in the US; 35 degrees below normal across the entire country.

There has been no evidence of global warming in past 14 years. Sea levels rising? Arctic ice melting? Stories all over the place.  See "Daily Trump Thought" -- December 7, 2016.

Related? SunPower to cut 2,500 jobs on top of previous cuts.  Aluminum-roofing company having challenges navigating turbulence in the renewable energy business.This is 25% of its workforce -- and this is one industry where robots can't take the place of real humans.

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Active rigs:

	12/7/2016	12/07/2015	12/07/2014	12/07/2013	12/07/2012
Active Rigs	38	64	188	193	181

RBN Energy: Tallgrass's REX set to boost northeast gas takeaway capacity.

Takeaway capacity out of the Marcellus/Utica shale producing region is about to get another significant boost.

Tallgrass Energy’s Rockies Express Pipeline (REX) expects to bring the first 200 MMcf/d of its 800-MMcf/d Zone 3 Capacity Enhancement project (Z3CE) in service any day now, and ramp up to the full 800 MMcf/d by end of the year (only 20-some days from now).

Moreover, the pipeline operator has hinted that it may be able to eke out incremental Zone 3 operating capacity over and above the new design capacity in the near future. The Z3CE expansion will mark the third time in as many years that REX will increase westbound takeaway capacity out of the Marcellus/Utica region.

With each capacity boost, Northeast production volumes have risen to the occasion and the capacity has filled up. Today we examine this latest expansion and what it will mean for U.S. gas production.

Saudi Arabia's IPO: from Reuters/Bloomberg/Rigzone. This is a pretty good article. It provides another reason why Saudi Arabia was interested in getting an "OPEC" deal to cut/freeze production. Was it all about a successful IPO?

• “Even $60 oil isn’t enough to solve all the country’s fiscal issues,’’ Apostolos Bantis, a credit analyst at Commerzbank AG in Dubai, said in an interview. “It’s more a question of building confidence in the economy. If crude stabilizes at higher prices, that will give more certainty and provide a stronger basis for the Aramco IPO.’’
• “For the Saudis, success would look like oil prices where they are now or a bit higher,” said Robin Mills, chief executive of Dubai-based consultant Qamar Energy. “The best outcome would be fighting shale to a draw and maintaining market share.”
• OPEC’s output deal won’t undo the fiscal damage wrought by three years of falling oil prices. For the Saudis, the agreement isn’t so much about getting the country back in the black as it is about underpinning an ambition to wean the economy off oil, Bantis said.
• Bantis and Qamar’s Mills both see oil staying above $50 a barrel next year, with Mills forecasting Brent at between $55 to $60 for the six months that the deal is in place. OPEC can extend the deal for another six months. Brent was 0.4 percent lower at $54.72 a barrel Tuesday, December 6, 2016.
• The country’s fiscal break-even price will drop to $79.70 a barrel this year from $92.90 in 2015, the International Monetary Fund said in October.

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The Political Page

Now that President Obama is on his way out, it is amazing to listen to MSNBC "Morning Joe." Today, there is pretty much general agreement that President Obama's Iran deal was a complete disaster. Add that to the long list, starting with Solyndra and ObamaCare.

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The Market

Dow futures up 17 points, another surprise. Nasdaq futures up 1.50. WTI is up about 10 cents, slightly above $51.

AMD soars among rumored deal. It will be interesting to see what XLNX does today; it was up a bit yesterday and hitting new 52-week highs.

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The Technology Page

I don't have Apple TV but I assume it is awesome. I don't have Apple TV because I don't know if it would make TWC TV redundant.

Having said that -- not having Apple TV -- we do have TWC TV which is quite incredible. We do have two big-screen televisions in this small two-bedroom apartment, but what we really like is the fact we can watch television on all mobiles devices in the house: laptops, tablets, and, I assume, smartphones.

Then, add a wireless Bluetooth speaker like Beats Pill or UE Boom. Apple owns Beats but talking to Apple employees a year or so ago, they felt the UE Boom was the better choice. And slightly less cost. If I had all the money in the world I would "hang" a 13" (12.9-inch) iPad Pro in each room in the house, starting with the kitchen.

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Brilliant

The cover of Time magazine in which Trump is pictured as "Man of the Year," the only subtext: President of the Divided States of America. It was noted by Mr Trump on "The Today Show" that he was not the one that divided the state of America. President Obama has been president for the past eight years; President Obama is still president; and, Trump doesn't take the oath of office until January 20, 2016. 

Stop The Presses -- Best Story Of The Day -- August 27, 2015

I replied immediately after reading this article to the reader who sent me the link:

I'm sitting here in the Soutlake, TX, library and literally laughing out loud. Thank you.

Here's the link.  Here's the story:

Last September (2014), a couple in southern California installed 36 solar panels on their private residence.

But, the local utility company did not allow the couple to turn the panels "on." The panels would have generated 128 percent of what the couple needed -- 28 percent over what SolarCity estimated they needed.

SoCal Edison did not allow the Halls to activate their system because it exceeded state standards for residential energy production.

A rep for SoCal Edison says producing more solar energy than you can use makes you a potential energy retailer, with that title, you become subject to commercial business regulations and you’re eliminated from any homeowner rebates that come with going solar.

So after 11 months, the Halls don’t have a dime’s worth of savings for going solar. The couple cut ties with Solar City, who promised to remove the panels and restore the Hall’s home to its prior condition.

Remember when you were a kid and you took out your magnifying glass and tried to "burn" ants? That's the image I got when reading this story: these folks had a solar panel magnifying glass on their roof; turning it on, and the house heats up to 128% of what is needed.

Do I see a future Homer Simpson episode?

But apparently that wouldn't happen. According to the president of Sol Reliable, a solar energy company, when asked whether extra energy generated by solar panels could be a safety risk, this reply:

"It [the panel] will be generating electricity which most probably will just be wasted," Shetzen said.

Tesla Motors Batteries To Provide Backup Power For Solar Panel Customers

Zack's at Yahoo!Finance is reporting:

Tesla Motors, Inc.’s batteries will be offered along with SolarCity Corporation’s commercial solar systems. Tesla’s batteries will be providing a backup power source to its customers and support in reducing the consumption of electricity and hence the electric bill.

Solar systems need to depend on sunlight. However, Tesla’s batteries will help the customers in times of solar blackout as well. In addition, Tesla’s batteries will provide an alternative source of energy during power cuts. The batteries will help the functioning of critical systems for several hours or for several days if it gets charged from the solar energy during the day time.

Moreover, commercial consumers have to pay charges for the entire amount of electricity they may need from the grid at any one time. This is known as demand charges in the electric industry. The solar panels and Tesla’s battery packs intend to reduce those demand charges. It is expected that the addition of Tesla’s batteries will reduce demand charges by 20%.

Except for the occasional battery fire and loss of home or business, this sounds like an incredibly great idea. 

Home Photovoltaic (PV) System -- For Archival Purposes Only

Link at The Oil Drum

Data points:

• sunny San Diego
• personal hobby
• solar panels
• batteries to store electricity
• provides electricity for refrigerator, attic fan, television and associated entertainment components, two laptop computers, the cable modem and wireless hub, and a printer;
• what is not provided for: heating water; washer; dryer; heater; air conditioner; all lights (interior/exterior); freezer (unless part of refrigerator); dishwasher; power tools; electric pencil sharpener; electric toothbrush; 

Results:

On the economic side, taking the advertised capacity for a lead-acid battery at face value, I can get a Trojan T-1275 for $235, and if treated gently it will provide an energy outlay of 750 full-cycle-equivalent discharges. Each full discharge has 12 V times 150 Ah, or 1.8 kWh. This works out to $0.17 per kWh. 

If I instead cycle at 50% and get 575 full-cycle equivalent outlay at a de-rated 1.5 kWh/cycle, the cost is about $0.28/kWh. 

Since my system uses the battery for half its energy needs, the effective cost of electricity for battery replacement alone is about $0.14/kWh, which is pretty close to the utility rate in San Diego.

Bottom line:

So why would anybody go this route? 

In remote locations, the cost of running utility power lines can be prohibitively expensive, quickly tipping the scales in favor of off-grid PV (the sunk investment in panels, etc. can be less than that in utility installation, in which case the cost of batteries offsets the steady utility bill). And I must say I enjoyed having power during the San Diego blackout of 2011. Moreover, I get pleasure out of having my own power generation capability. It’s part hobby, part independence, part practical. All cool.

Comments: 

• some years ago (2010, time frame) when I was tracking the cost of solar energy, it was about 30 cents/kWh; not much change over the years
• battery replacement: a) lump sum, front-end cost; b) disposal issues for the old batteries; c) batteries alone exceed slightly the total utility rate
• part hobby, part independence, part practical; one could add: part tedious

Other sites of interest

• full solar system cost for personal residence