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More solar will likely result in higher grid energy prices, since people will buy a lot less energy while the grid costs the same to maintain.


Solar can also reduce grid costs, by e.g. shaving the yearly peak power demand, which is usually a summer afternoon so it's not clear cut.

Probably the bigger impact is bad incentives for the people building the grid, who are often able to do what they like and get a guaranteed percentage return on top, which pushes them to spend more than they need to. This has been particularly pronounced in Australia I believe.


Usually when there is additional competition (grid owners generate and supply electricity), markets respond by dropping prices.

This might also be why utility companies have been furiously lobbying against rooftop solar subsidies and Barclays have downgraded US utility bonds.




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