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> but if price swings are this wild, how are grid scale batteries not highly economical

They are super economical in Australia and the government even offers discounts and interest free loan of 15k to buy them.

They are super economical… which is why there’s a subsidy required for people to buy them?
The more households that buy them, the less peak power generation is needed and less large scale battery deployments. If the ROI of a household battery was just 4%, you are better off economically paying higher power bills and sticking that money in an index fund. But if subsidies increase that ROI, more people buy batteries. The money the government contributes hopefully ends up less than they would need to spend on large scale battery deployments or on legacy power generation to power peak usage times. It also has the side effect of getting more citizens (literally) invested in sustainable power usage, and people get more interested in insulating their homes, buying more efficient appliances, moving away from gas etc.
> which is why there’s a subsidy required for people to buy them?

the gov't also offers interest free (but inflation indexed) loans to tertiary education.

Just because there's a subsidy, doesn't mean the tax payer is paying a price for inefficiency. The policy itself needs to be individually examined to determine whether it's an efficient use of funds, not simply that it's a subsidy (time frame needs to be taken into account too).

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Is it so out of the ordinary that a government tries to help people save money or what's the question? Sounds like you've only had the American experience in life unfortunately.
If something actually saves money then it doesn't require a subsidy because people would be doing it regardless.

Meanwhile the government doesn't have any of its own money, so it can't really give you something that was yours to begin with, all it can do is take it from you and then give it back with strings attached. How is that helping you? Instead of subsidizing something you can make up your own mind about whether you want, they should just lower your taxes by the amount of the subsidy and let you use your money for that or something else at your choice.

> If something actually saves money then it doesn't require a subsidy because people would be doing it regardless.

Spoken as someone who never been poor. There is definitely a ton of stuff people with money can do to save more money, that is completely out of reach for the people who would actually benefit from those savings the most. Subsidies is quite literally about reaching these folks that others tend to forget about.

> all it can do is take it from you and then give it back with strings attached. How is that helping you?

Compared to "take it from you and not give it back to you", it's definitely helping people who have less money. Not sure how this needs explaining.

> Spoken as someone who never been poor. There is definitely a ton of stuff people with money can do to save more money, that is completely out of reach for the people who would actually benefit from those savings the most. Subsidies is quite literally about reaching these folks that others tend to forget about.

Except that there is no additional money, its just your own money but now there are strings.

On top of that, that still isn't necessary for things that save a non-trivial amount of money, because that's what loans are for. If it has a $100/mo loan payment and saves $150/mo on the electric bill then you take out a loan or buy it on an installment plan and don't need to have any accumulated capital in order to do it.

> Compared to "take it from you and not give it back to you", it's definitely helping people who have less money. Not sure how this needs explaining.

Why would anybody want that either, instead of just not taking it from you to begin with?

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> Except that there is no additional money, its just your own money but now there are strings.

I understand what you mean, and yeah, "it's just your money", but also, it really isn't. Poor people have to pay taxes, no way around it, getting them back as subsidies is still better for them than not getting it back at all. The choice isn't "Keep the money or have subsidies", the choice is "The money goes to other stuff or get subsidies".

> On top of that, that still isn't necessary for things that save a non-trivial amount of money, because that's what loans are for. If it has a $100/mo loan payment and saves $150/mo on the electric bill then you take out a loan or buy it on an installment plan and don't need to have any accumulated capital in order to do it.

Are those interest-free or managed by for-profit entities? Because "loans" are vastly different things compared to subsidies, but I'm guessing you already knew this.

> Why would anybody want that either, instead of just not taking it from you to begin with?

Because "not taking it from you to begin with" isn't a practical and realistic alternative, that's not how the world, and especially taxes and government works...

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> If something actually saves money then it doesn't require a subsidy because people would be doing it regardless.

…assuming people are good at math.

And given that most people probably don't have a bunch of cash just sitting there doing nothing, they will have to take out a loan and most folks probably don't like going into debt even though 'the math says' it's a good ROI.

The idea that 'ROI good, therefore people will do it' is the 'spherical cow' of economics. In reality there are all sorts of other motivations for human economic actions:

* https://en.wikipedia.org/wiki/Behavioral_economics

* https://en.wikipedia.org/wiki/Homo_economicus

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It can work when the marginal cost of new capacity is high, compared to existing capacity.

E.g., if the marginal cost of supporting 1 kW of new capacity may be X, while the current averaged cost of 1 kW provided to existing customers may be Y, with Y < X.

The customer will calculate their ROI on a battery purchase based on the cost Y of kW to them, which may be poor (4%), while on the government level of the ROI may is closer to that implied by the cost X (say 10%). However, the government cannot easily pass on the "marginal cost" to customers as there is no specific kWh which is that marginal one across all customers.

In this case a subsidy directly picks out customers who can reduce their demand by buying a battery (e.g., a subsidy which raises the ROI to somewhere between 4% and 10%).

Think about people who could not afford the initial investment. It's beneficial for society here if the government redistributes wealth for the benefit of all.
> Think about people who could not afford the initial investment.

This is what loans and installment plans are for, the payments for which come out of the savings on the utility bill.

> It's beneficial for society here if the government redistributes wealth for the benefit of all.

Which has nothing to do with batteries. If you want to do that then provide them with a refundable tax credit that allows for a negative tax rate in cases where that's deemed desirable.

And even that doesn't apply to the majority of people who are currently paying a non-negative amount of tax. Why attach strings to the money going to a middle class homeowner who should have just been allowed to keep that portion of their own salary?

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"If something actually saves money then it doesn't require a subsidy because people would be doing it regardless."

Yet people frequently don't. This assertion and reality disagree.

Because the individualized incentives do not take into account the community benefits.

The money saved is distributed across the community, for both those that directly benefit and those that can't (eg renters, apartments etc). The general benefit is of greater value than the individual savings.

Your attitude that somehow taxation is theft is a very silly Ayn Randian Objectivism outgrowth that has never been true, even in the most "free" US states.

> Because the individualized incentives do not take into account the community benefits.

Only if the utility company is pricing things incorrectly.

If the price of electricity is ~free during the day and expensive in the evening then the individualized incentives for installing a battery line right up.

> Your attitude that somehow taxation is theft is a very silly Ayn Randian Objectivism outgrowth that has never been true, even in the most "free" US states.

Whether it's theft or not doesn't change the arithmetic. When you're paying them the money they're paying you, it was your money to begin with.

Think of it as a giant corporate tax break, but for the little people.
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I know people who would purchase solar panels and batteries, but they do not have enough capital to do so.
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The government loan changes the calculus. Allows for short term thinking and a long term benefit.
Yes. People can't always afford super economical things when the initial cost is high and the pay-off takes a while, but is easily worth it in the end.