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Germany has too many solar panels, and it's pushed energy prices into negative territory
(markets.businessinsider.com)
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this post was submitted on 24 May 2024
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Well it is a problem, sort of. It's a failing of the market.
But it does open up another market for energy storage so it will save itself through regular marker forces.
But we absolutely want energy suppliers to make money off solar (over a year) or they will simply stop building more of it. I'm not sure if the German state is losing money on this though, in which case they absolutely need to build more storage.
I'm getting really worried about how energy is going to be generated in winter once solar and batteries completely dominate energy production in the summer.
This is the market working properly.
Well yes.
But having to pay people to take a good/service from you is really/ really weird. Not really sure how to describe it.
Huh? What do you think a parking space is?
Happens all the time. My employer pays a company to come collect our e-waste, which they then sell to a recycler who strips it and sells the recycled metals. One company's trash is often another one's treasure. Or better yet, one company's liability is another company's asset. Excess electricity is a liability to the electric company so they pay to get rid of it. The amount they're paying for disposal is less than the potential cost of keeping the liability around (equipment failure in this case).
But you company isn't producing e waste.
To have a good that is both sold for profit and you pay someone to take it is weird.
It doesn't matter anyway, we both agree market forces will solve the problem.
Build sufficient storage capacity and prices will not turn negative.