[HN Gopher] Pakistan says rooftop solar output to exceed grid de...
       ___________________________________________________________________
        
       Pakistan says rooftop solar output to exceed grid demand in some
       hubs next year
        
       Author : toomuchtodo
       Score  : 171 points
       Date   : 2025-11-27 16:42 UTC (6 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | toomuchtodo wrote:
       | https://archive.today/48P6c
        
       | pfdietz wrote:
       | What this shows is solar is increasingly threatening the electric
       | utility business model. Even without net metering, demand
       | destruction will cause the traditional model to stop working.
        
         | thfuran wrote:
         | Will it? I'm not sure how the utilities structure their prices
         | wrt the actual cost, but they definitely separate the baseline
         | connection cost from usage on bills (at least in the US), so
         | they may not be killed by people using very little power as
         | long as the connection fee actually covers things.
        
           | kingstnap wrote:
           | The hardest possible demand to meet is random, reasonal, and
           | spikey demand spread diffusely over a large area. Which is
           | more or less homes.
           | 
           | Conversely the easiest possible demand to meet is localized
           | constant and high demand. Basically AI datacenters or
           | industrial users. These guys are basically paying for the
           | grid and residential have it as a subsidy.
           | 
           | The supermajority of the price of electricity is fixed costs
           | related to installing and maintaining capacity. The marginal
           | problem of increasing generation or utilization is cheap. I
           | believe it's like under 20% even for gas power where you have
           | to buy gas. For grid solar it would be even crazier because
           | marginally its basically free they really don't care how much
           | you use it even goes negative but the fixed costs are
           | everything.
           | 
           | So what causes a lot of social problems is when wealthy
           | people get their own private solar because the whole current
           | pricing structure revolves around wealthy people using a lot
           | of electricity and paying down the connection costs for poor
           | people. If they have solar the poor people are fronting the
           | maintainence cost which destabilizes everything.
        
           | jaltekruse wrote:
           | Unfortunately the connection fee does not cover all fixed
           | cost. For a long time the model has been fairly "progressive"
           | in this regard. Some of the fixed costs of the grid have been
           | paid for by amortization over the per Kw cost, which had the
           | effect of charging people who used more a larger chunk of
           | these fixed costs. Now with the option to provide your own
           | power if you have upfront capital for solar can build as big
           | of a system as they want. As other comments in the thread
           | have mentioned, net-metering is largely functioned as a
           | subsidy to give money to people who are already doing fine
           | financially. I want green energy, and I think that
           | decentralization has definite benefits, but it's pretty hard
           | to argue against maintaining the grid to allow re-balancing
           | and covering supply shortfalls in specific areas. Here is a
           | video discussing this problem -
           | https://youtu.be/C4cNnVK412U?si=ZzZhoApFW3khqrdq&t=720
        
             | namibj wrote:
             | What you could do is bill per energy in e.g. 15 minute
             | chunks, and separately bill for transformer/line capacity
             | by e.g. the peak usage in any such chunk over the contract
             | period, like they do in Germany for atypical load profile
             | industrial users since decades ago.
             | 
             | Net metering is overall just entirely stupid as a concept;
             | measure inbound and outbound flow separately if you can't
             | just measure the 15 minute chunks; bill grid fees on the
             | energy price on inbound and only pay energy price on
             | outbound. Or even bill grid fees on outbound up to one of
             | many available large substations, and thus handle the issue
             | of demand across large distances making buildout of solar
             | in a convenient but far away place not being
             | disincentivized vs. more-demand-local buildout.
        
         | SoftTalker wrote:
         | Most people aren't interested in being responsible for their
         | own electrical generation. Especially with payback still being
         | on the order of decades
        
           | seanmcdirmid wrote:
           | Most people don't have the capital to be responsible for
           | their own electricity generation, except the rich.
        
             | andor wrote:
             | It's really not expensive anymore. There's a Black Friday
             | deal on amazon.de for an entry-level Anker Solix system
             | with 4x500W panels and a 2.6 kWh battery. 1200 EUR.
             | 
             | For those that don't have the cash, financing is available.
             | 
             | Have you read this, about SunKing and SunCulture in Africa,
             | recently posted on HN:
             | https://climatedrift.substack.com/p/why-solarpunk-is-
             | already...
             | 
             | Their smallest solar products are small lanterns. Simply
             | having a pollution-free source of light is already a
             | quality of life improvement for some people. One step up is
             | to add a USB port to charge phones.
        
               | seanmcdirmid wrote:
               | Oh I'm sure, Pakistan has alot of trade with China also
               | so it's probably cheaper than in the west. But it would
               | still be expensive for the poorer Pakistanis, and would
               | require some investment, they simply have less ability to
               | do that than a richer middle class Pakistani, so the poor
               | pay the poor tax because they can't invest capital to
               | bring their costs down.
               | 
               | Low Chinese prices are making it more and more possible
               | though. I hope the future will be really different.
        
           | AngryData wrote:
           | A lot of people in my area are interested and it would be a
           | net positive for them long term, but the area is poor so few
           | can afford the initial costs despite knowing the money they
           | would ultimately be saving.
        
           | testing22321 wrote:
           | My payback is 6-7 years in Canada with $0 invested.
           | 
           | "Responsible for my own power generation" = I do literally
           | nothing. Nada.
           | 
           | I get $1000 a year for free.
           | 
           | Please show me someone who does not want $1000 per year for
           | absolutely nothing.
        
           | stephen_g wrote:
           | Visit Australia, plenty of people are! When the real paybacks
           | are generally 4-8 years (depending on what we're talking
           | about) why wouldn't people be? We have 4.2 million solar
           | systems (for reference there are almost 11 million
           | dwellings). Just this year the Federal Government started
           | giving out grants for home batteries and over 55,000 people
           | have already taken that up and at least 90,000 home battery
           | installations exist so far according to these stats:
           | https://cer.gov.au/markets/reports-and-data/small-scale-
           | inst...
           | 
           | Even if people don't go to the lengths I do (I like to watch
           | the current generation and will slightly delay my use big
           | loads like the washing machine, dishwasher, dryer etc. to try
           | and use as much as my solar as possible), it's still very
           | common for people to choose to do things like set the
           | dishwasher timer in the day to use solar - which is great
           | because it's also taking load off the grid.
        
         | more_corn wrote:
         | There's a business model where distributed solar production and
         | storage is the norm and central grid based generation and
         | delivery is the minority.
         | 
         | Such a model is extremely resistant and there's less system
         | infrastructure necessary. It's quite feasible to redesign the
         | system around a "distributed first" model.
        
           | idiotsecant wrote:
           | Where do the massive upgrades to the distribution system
           | required for this kind of setup come from?
           | 
           | We simultaneously hate utilities and want them to redesign
           | and pay for a distribution system that was not intended for
           | bidirectional load flow.
           | 
           | Our municipal distribution systems are _barely_ adequate. Net
           | metering produces essentially no revenue but imposes a huge
           | load on that infra.
        
             | kieranmaine wrote:
             | My understanding is there is less of a need for massive
             | grid upgrades in this model due to the use of storage.
             | Rather than having to be able to distribute peak loads from
             | solar, requiring a larger connection, you can smooth out
             | the supply and distribute an even amount throughout the
             | day, using a smaller connection.
             | 
             | The section "1.1.3 Bringing large savings on grid
             | expansions" [1] has a good explanation.
             | 
             | 1. https://ember-energy.org/latest-insights/solar-
             | electricity-e...
        
         | UltraSane wrote:
         | What will people do at night?
        
           | newsclues wrote:
           | Shift usage to daytime and rely on battery storage.
        
             | UltraSane wrote:
             | Batteries are very expensive.
        
               | newsclues wrote:
               | Couple used car batteries or usb batteries are cheap.
               | 
               | Enough to keep the lights on, a fan or charging a phone.
               | Not to run an AC or dishwasher but enough for the basics.
        
             | davyAdewoyin wrote:
             | For my experience a lot of installations really doesn't
             | have much battery capacity cause batteries are pretty
             | expensive at least here in Nigeria, but a lot of people are
             | really happy with the system as long as they get
             | electricity even if it's only during the day.
        
           | peppersghost93 wrote:
           | overprovision for their needs during the day and utilize
           | battery power at night.
        
             | UltraSane wrote:
             | Solar panels are cheap but batteries are very expensive.
        
               | peppersghost93 wrote:
               | They can be depending on your needs. Lithium iron
               | phosphate batteries are pretty cheap for their capacity.
               | If you build your own power station with them you'd be
               | surprised how far your money goes.
        
               | UltraSane wrote:
               | It is much more expensive that just buying electricity
               | from the grid at night.
        
               | scheeseman486 wrote:
               | In Australia, if you have the space for rooftop solar,
               | it's far cheaper in the long run to buy solar+battery. We
               | did the math for our household and even if grid prices
               | are stable (which they aren't, they're fast increasing)
               | we're still going to make money back on the investment in
               | less than 4 years.
               | 
               | Granted this includes a government rebate for the
               | battery, but overall the prices have plummeted. Any
               | government that isn't pushing for renewables and energy
               | storage at this point is actively working against it's
               | citizens.
        
               | jillesvangurp wrote:
               | Batteries are dirt cheap already and getting cheaper all
               | the time. Pakistan would be buying them at the Chinese
               | prices without a lot of tariffs or nonsense that might be
               | misleading you into believing otherwise.
               | 
               | Think a bandwidth of 50-80$ per kwh cost levels for the
               | manufacturer with a margin on top in a market where
               | there's over production and prices are still trending
               | down and margins are probably under quite a bit of
               | pressure. That's the widely publicized cost levels for
               | Chinese manufacturers that dominate the world supply
               | currently. Some of the sodium ion batteries that are
               | coming to market now are already at the lower end of that
               | price bandwidth and could go to 10-20$/kwh over the next
               | 5-10 years; maybe faster.
               | 
               | At those prices, anyone can afford plenty of battery to
               | survive the sun not shining for days/weeks. Which in
               | places like Pakistan would be redundant. It's far south
               | and you can count the number of days that you shouldn't
               | be wearing sunglasses outside per year on the fingers of
               | one hand. Even when it's cloudy, there's plenty of light
               | filtering through in that part of the world..
               | 
               | Prices you might be seeing in the US tell you more about
               | the local politics there than the economics of batteries.
               | The US has it self to blame for bad economics like that.
               | Places like Pakistan aren't going to slow down because
               | the US can't figure out all this new stuff. For them this
               | is economic growth unlocked by vastly more energy than
               | they've ever had access to. All they'll ever need
               | basically.
        
               | triceratops wrote:
               | Batteries are cheap in developing world prices, cheap in
               | rich country prices. They continue to become cheaper
               | every year.
        
           | davyAdewoyin wrote:
           | I think I can answer that, though I'm not a Pakistani but as
           | a Nigerian in a developing country, you might also have a
           | petrol generator for night times. But for the majority of
           | people just having your phone and power bank charged for the
           | night is pretty ok, a plus if you can keep a handful of bulbs
           | on also.
        
           | kragen wrote:
           | At night, what people will do is wait until the morning to
           | run the washing machine.
        
         | _trampeltier wrote:
         | I think in most countrys, you already pay one bill for the grid
         | and one for the used electric power.
        
         | ghc wrote:
         | Commercial and industrial use already makes up a large portion
         | of demand. While the model will change to cater less to
         | residential needs, overall demand for stable, high voltage
         | generation is not going to go down.
        
           | jasonsb wrote:
           | Commercial properties often have enough roof area to meet
           | most of their daytime demand on-site. And industrial
           | consumption in Western countries has been flat or declining
           | for years, so "stable, high-voltage generation" may face less
           | demand than assumed.
        
         | PunchyHamster wrote:
         | if the same solar also had enough battery capacity, sure. But
         | they do not, they still need to buy at out of solar peak and
         | that just causes problems for both sides.
         | 
         | I think grid should start moving into selling storage as a
         | service. Just put a bunch of bulk storage at every transformer
         | station and buy solar from consumers at solar peak, sell them
         | back say 80% of it (or whatever margin is required to pay for
         | it) off peak.
         | 
         | That way utility no longer have to haul megawatts all the way
         | from the power plant all the time, any peak can be hauled from
         | the batteries and let the other types of power plant more time
         | to spool up, and the grid is more resilient to outages
         | (assuming you were lucky and battery bank local to you still
         | had some charge
        
           | toomuchtodo wrote:
           | LFP chemistries are approaching ~$50/kWh, and CATL's sodium
           | chemistry is supposed to be ~$40/kWh (per CATL); soon it will
           | be more expensive to ship the battery storage than the
           | storage itself.
           | 
           |  _" Watershed moment:" Big battery storage prices hit record
           | low in China auction_ -
           | https://news.ycombinator.com/item?id=44504630 - July 2025 (4
           | comments)
           | 
           |  _IEA: The battery industry has entered a new phase_ -
           | https://www.iea.org/commentaries/the-battery-industry-has-
           | en... - March 5th, 2025
           | 
           |  _Naxtra Battery Breakthrough & Dual-Power Architecture: CATL
           | Pioneers the Multi-Power Era_ -
           | https://www.catl.com/en/news/6401.html - April 21st, 2025
           | 
           |  _China Already Makes as Many Batteries as the Entire World
           | Wants_ - https://about.bnef.com/insights/clean-
           | transport/china-alread... - April 19th, 2024
        
             | kragen wrote:
             | Currently "Sodium Battery Cell" is priced at US$50-70/kWh
             | on the Shanghai Metals Market, which gives every appearance
             | of being a real thing: https://www.metal.com/en/markets/43.
             | They list LFP batteries currently at US$38-52/kWh:
             | https://www.metal.com/en/markets/42
             | 
             | I think you may be dramatically overestimating how much
             | container shipping costs.
        
             | sagarm wrote:
             | Sodium batteries have significantly lower round-trip
             | efficiency, so they have to be cheaper to win against LFP.
        
         | triceratops wrote:
         | In most places in the developed world utility-scale solar is
         | much cheaper to build than rooftop solar. And there's value in
         | having a stable grid to fall back on. I think the demand
         | destruction story is overrated.
        
           | kragen wrote:
           | Balcony solar is even cheaper to build than utility-scale
           | solar.
        
           | cheema33 wrote:
           | Utility-scale solar needs land and has to deal with line
           | losses. Rooftop solar does not have to deal with either.
        
         | testing22321 wrote:
         | > _solar is increasingly threatening the electric utility
         | business model_
         | 
         | The writing is on the wall that the electric utility business
         | model is a dying business like the career of bus or truck
         | driver. Some countries will take a while to realize due to head
         | in the sand , tariffs and corruption.
        
       | ZeroConcerns wrote:
       | Excellent results, even if the source article is a bit
       | government-optimistic-press-releasy. The less-good news is that,
       | even with abundant solar, you still need a functional grid (even
       | more so than in traditional top-down energy distribution schemes)
       | in order for everyone to take advantage of it, but this is a
       | problem that lots of rich nations are working through right now,
       | so affordable off-the-shelf solutions are bound to appear in the
       | near future.
       | 
       | And I wish Pakistan the best in taking advantage of those and/or
       | their home-grown ingenuity!
        
       | abdullahkhalids wrote:
       | I would encourage people to go look at satellite view of random
       | "rich" neighbourhoods in Pakistan, and note how many solar panels
       | there are on rooftops. Here is the first one I scrolled to in
       | Lahore [1], and one in Karachi [2]
       | 
       | Pakistan's grid prices tripled or more since the start of the
       | Russia-Ukraine war, because the extremely mismanaged and poorly
       | designed electricity system+economy could not handle the energy
       | price shock. This spiraled into rich people just buying rooftop
       | solar systems, which exacerbated the grid problems even more.
       | 
       | [1]
       | https://www.google.com/maps/@31.3611237,74.2493456,357m/data...
       | 
       | [2]
       | https://www.google.com/maps/@24.8014179,67.0460688,415m/data...
        
         | riku_iki wrote:
         | > rich people just buying rooftop solar systems, which
         | exacerbated the grid problems even more.
         | 
         | how it exacerbated problems exactly?..
        
           | saidinesh5 wrote:
           | I'm guessing: fewer people buying from the power
           | companies/grid => the fixed costs of these companies are
           | pushed onto the poorer customers, who already couldn't afford
           | much.
        
             | gus_massa wrote:
             | Don't they charge a minimum just for keeping the wires
             | connected?
        
               | bee_rider wrote:
               | I think most places the service is priced under the
               | assumption that usage is enough to pay for the grid...
               | 
               | I've only ever rented though. Are connection fees
               | something that homeworkers think about?
               | 
               | Possibly we will have to see changes to account for this
               | sort of stuff at a more granular level, as the grid
               | becomes more dynamic. But, that's a future we should be
               | actively looking to design for, as the energy supply mix
               | is going to change whatever anybody thinks about that.
               | Can't beat energy falling from the sky, on price...
        
               | namibj wrote:
               | In a random German apartment usage tends to be on the
               | order of 30-ish EUR per person, and the connection fee is
               | typically around 10 EUR per month.
        
               | apelapan wrote:
               | Is the EUR30 usage fee going directly to the producer of
               | electricity, or is part of it a variable transmission fee
               | that goes to the network operator?
               | 
               | My monthly electricity bill in Sweden, averaged over a
               | year to 1600KWh/month, is approximately EUR90 production,
               | EUR50 transmission fee, EUR25 fixed connection-size fee
               | (25A, 400V), EUR70 national electricity tax and EUR50 VAT
               | for a total of EUR285/month.
               | 
               | We'll be moved to yearly-peak-based transmission tariff
               | in 2027 (European law), but for now I don't need to worry
               | about plugging in the car to chargeon cold days or taking
               | shower when someone is cooking.
        
               | namibj wrote:
               | Both, currently; notably it's mostly not what goes to
               | your local grid, but rather mostly to the larger scale
               | grid. It's about a 60/40 to 70/30 split between
               | production/"grid-usage-fee" ("Netznutzungsentgelt").
               | 
               | It basically pays off the grid stability provision bids
               | for fast-response power, and the transmission itself.
               | 
               | It'd likely be helpful if the peak part could be
               | regulated in a way that's more condusive to match the
               | actual impact you create on transformer sizing, not the
               | worst-case impact you might have. Because there's a
               | difference between a mostly-uncorrelated peak of
               | shower+cooking vs. the car+cold day, because your
               | neighbours don't shower the same time, but the several
               | hours of charging do often overlap and the cold is the
               | same across a neighbourhood that shares a local
               | substation.
               | 
               | But yeah, for the most part, transformer size isn't that
               | large of a contributor to overall electricity provision
               | expenses, so I don't expect that to be a significant
               | problem by that 2027 law.
        
               | manmal wrote:
               | Usually that's included in per-kWh fee, so indeed usage
               | dependent.
        
               | phkahler wrote:
               | When they start charging that way, the rich will buy
               | batteries and disconnect from the grid entirely.
        
               | gus_massa wrote:
               | It's good until a Wednesday afternoon your home system
               | dies and you have no electricity until Monday. I guess
               | more people would prefer to pay a $10 or $20 monthly fee
               | just in case.
        
               | abdullahkhalids wrote:
               | I heard that they are trying to restructure the billing
               | in this way for next fiscal year (July 2026- ), but its
               | really difficult to find a non-regressive scheme.
               | Electricity per-unit prices in Pakistan are set by the
               | government, they vary depending on how much you consume
               | [1], and they play a pretty significant role in
               | government popularity.
               | 
               | [1] There is a price for the first 50 units you consume,
               | then a higher price for the next 150 units, etc. Similar
               | system to income taxes.
        
               | namibj wrote:
               | Grids in Germany if you're not a "typical
               | household/office" with therefore atypical grid usage bill
               | for peak power and energy separately; the billing related
               | peak power is measured by averaging power over 15 minute
               | chunks, and taking the worst one of a year.
               | 
               | Alternatively it's also practical for such solar
               | situations to bill for market rate price of the energy in
               | each 15 minute chunk separately; this doesn't correctly
               | attribute transformer and other transmission equipment
               | expenses between solar houses and non-solar houses, but
               | it's still handling the grid tie solar load on the grid's
               | power plants during periods of very little sun.
        
               | andyferris wrote:
               | > averaging power over 15 minute chunks, and taking the
               | worst one of a year.
               | 
               | What an interesting metric. Wouldn't even a very cheap
               | and small battery (definitely small enough to keep inside
               | an appartment) provide enough smoothing to, like, halve
               | this peak number? You could rig it to not even output
               | energy until you are beyond the current year's peak
               | usage... How much money would you save this way?
               | 
               | I just feel this number is so prone to small mistakes
               | (grandma plugs in the wrong things at the wrong times)
               | and hacks (like the above) that the relationship between
               | users' reward/punishment and the grid's health seems
               | wildly disproportionate.
               | 
               | > market rate price of the energy in each 15 minute chunk
               | separately
               | 
               | I am currently on a plan with 5 minute market rates, can
               | buy and sell in (sell prices can go negative - as can
               | buy, actually), all automated. At least I feel we am
               | working with the grid, not against it, and we make a
               | small net profit (before depreciation).
        
               | distances wrote:
               | > Wouldn't even a very cheap and small battery
               | (definitely small enough to keep inside an appartment)
               | 
               | Like namibj mentioned, this does not apply for
               | residential contracts.
        
               | namibj wrote:
               | I don't think it's necessarily impossible to get that
               | billing model as a household; it's just not an
               | interesting one to have as it's not competitive for the
               | usage patterns of a household.
        
               | Tuna-Fish wrote:
               | > relationship between users' reward/punishment and the
               | grid's health seems wildly disproportionate.
               | 
               | It's still much closer to the real costs for the grid
               | operator than $/kWh. The fundamental problem that rooftop
               | solar has revealed is that people think they are paying
               | for the electricity, but they are not. Electricity is
               | dirt cheap. Most of what they are paying for is the
               | maintenance of the grid, and simple usage based billing
               | crushes the system because of freeloader problem once
               | rooftop solar is added.
               | 
               | Long term, the likely thing you pay for will be the size
               | of the main fuse that connects you to the grid. Because
               | that's the thing that scales with the costs you impose on
               | the operator.
        
               | namibj wrote:
               | Actually the local cost is not the fuse size, but how
               | much smaller the first transformer after you could be if
               | you weren't there. Though it's often more fair to
               | determine such for each user; then take those as a
               | relative scale, then split the transformer's actual TCO
               | by the determined share sizes between the users. Because
               | the first user needs the transformer to it's peak size;
               | the second only by the instantaneous-added peak size,
               | which is lower as they won't use it peak at the same
               | time.
        
               | namibj wrote:
               | It's legacy tactics; against the hacking the comparable
               | thing for internet connections has historically been iirc
               | 5 minute chunks and then taking the 95th percentile
               | (like, charging not the highest, but the one 5% away from
               | the highest). Not sure about the 5 min aggregation tbh.
               | 
               | The 15 minute chunks are due to the German and much of
               | the European grid market being in that chunk size.
        
             | riku_iki wrote:
             | its easily fixable, utility company can charge fee for
             | fixed cost those who connected to the grid, and if all rich
             | decided to disconnect, then they disconnect neighborhood
             | eliminating fixed cost.
        
             | abdullahkhalids wrote:
             | This is correct.
             | 
             | But there is a bit more. Almost all power plants in
             | Pakistan are built with state-backed dollar-denominated
             | loans (reason govt incompetence+corruption). This means if
             | grid demand goes down, power plants don't go out of
             | business like they would in a market based system. Instead,
             | they keep collecting dollar-denominated interest paid by
             | the state, even if they produce zero power.
             | 
             | The state mitigates this by increasing electricity prices
             | (in rupees). I have forgotten how this helps.
        
               | jstanley wrote:
               | So the power plants lend dollars to the state so that
               | they can pay to build the power plant?
               | 
               | Or else I don't see how the power plants are collecting
               | the interest?
        
               | abdullahkhalids wrote:
               | Usually there are three parties in these agreements.
               | 
               | 1. State of Pakistan
               | 
               | 2. Someone with dollars (the investors)
               | 
               | 3. Local businessman who are willing run the power plant.
               | 
               | The three parties come to an agreement on what the
               | minimum returns should be on the investment. Say 10%
               | annual. Then the investors give money to the businessman,
               | who then import the power plant equipment and start
               | operating it. The state-run electricity distribution
               | companies buys from the power plant as needed and pays
               | them the unit price set by the State of Pakistan. Part of
               | this is converted into dollars at some pre-agreed rate
               | and transferred to the investors.
               | 
               | In all this, if the total returns to the investor are
               | above 10%, then all is good. However, if the grid demand
               | has fallen, and the distribution company didn't buy a lot
               | of units from the power plant, then the State of Pakistan
               | has to step in and give the investors the difference to
               | make up the 10% returns.
               | 
               | Yes, it is an insane system.
        
               | bofadeez wrote:
               | State capitalism like you described totally undermines
               | the price system by replacing profit-and-loss-guided
               | entrepreneurial calculation with political allocation of
               | resources, thereby rendering economic calculation
               | increasingly impossible and eroding the coordinating
               | function of the market process.
        
               | kragen wrote:
               | Yes, but nobody has found a more effective way to build
               | infrastructure in poor countries. State capitalism as
               | described is how infrastructure development happened in
               | Indonesia, Malaysia, Taiwan, Hong Kong, Korea, Japan,
               | Vietnam, Thailand, etc.
        
               | bofadeez wrote:
               | The fact that infrastructure was built under state
               | capitalism does not demonstrate the superiority of
               | central planning, only that capital accumulation occurred
               | despite intervention, often financed by prior scarcity,
               | foreign savings, or coerced transfers; absent market
               | prices and entrepreneurial profit-and-loss, the state
               | cannot know whether the infrastructure created was the
               | most value-productive use of scarce resources, only that
               | concrete and steel were poured.
        
               | kragen wrote:
               | I think it demonstrates the increased variance of central
               | planning. The Congo Free State was also centrally
               | planned, and so was the Holocaust, the Holodomor, the
               | Armenian Genocide, Suharto's mass murder of suspected PKI
               | sympathizers, etc. But the _expected_ outcome for poor
               | countries is that they stay poor and don 't develop into
               | industrialized export giants the way my laundry list of
               | countries did.
        
               | toomuchtodo wrote:
               | It is unfortunate that the government of Pakistan and
               | their investors (China and the IMF) made poor investment
               | decisions. They should feel free to go back to debt
               | holders to renegotiate the debt, or default on it and
               | hand the stranded assets back to creditors. The death
               | spiral is of their own making, and will only accelerate
               | as solar PV and battery cost declines continue.
               | Electricity consumers will simply go off the grid. Such
               | is the risk of unsophisticated investors not
               | understanding the market in which they invest. Capital
               | being at risk is an inherent component of investment.
               | 
               | My condolences and sympathy to the people of Pakistan
               | caught in the mess. The global energy transition will be
               | volatile.
               | 
               |  _Solar electricity every hour of every day is here and
               | it changes everything_ - https://ember-energy.org/latest-
               | insights/solar-electricity-e... - June 21st, 2025
               | 
               |  _Stranded fossil-fuel assets translate to major losses
               | for investors in advanced economies_ -
               | https://www.nature.com/articles/s41558-022-01356-y |
               | https://doi.org/10.1038/s41558-022-01356-y - May 26th,
               | 2022
               | 
               |  _Rethinking Energy -- 100% Solar, Wind and Batteries Is
               | Just The Beginning_ -
               | https://www.youtube.com/watch?v=PM2RxWtF4Ds - January
               | 2021
               | 
               | Who owns the distressed fossil generation collateralized
               | debt? China. Where is Pakistan importing cleantech from?
               | China. There is some IMF debt in there as well, for
               | accuracy.
               | 
               |  _How Chinese loans trapped Pakistan 's economy_ -
               | https://www.dw.com/en/how-chinese-loans-trapped-
               | pakistans-ec... - August 2nd, 2024
               | 
               |  _Emeber Energy: China Cleantech Exports Data Explorer_ -
               | https://ember-energy.org/data/china-cleantech-exports-
               | data-e... (updated monthly)
        
               | elzbardico wrote:
               | The reason power plants in Pakistan probably require this
               | kind of financing is because Pakistan doesn't have the
               | industrial capability to make the equipment that you need
               | to build a power plant, so, dollars are a requirement.
               | 
               | Power companies in Pakistan also don't have easy access
               | to international money markets, and thus, it makes sense
               | for the government to back those strong currency loans as
               | a subsidy on infrastructure.
               | 
               | This is not exclusive to Pakistan, this is the routine of
               | infrastructure financing on developing countries. J.P.
               | Morgan is not really eager to lend money for PakiPower
               | Incorporated, but it is willing to lend to the
               | government.
        
           | kieranmaine wrote:
           | The following isn't a grid problem (more of a demand issue),
           | but maybe they're referring to this:
           | 
           | > But 45 percent of Pakistanis live below the poverty line,
           | according to the World Bank, putting solar panel systems well
           | beyond their reach. The pool of customers for the national
           | grid has gotten smaller and poorer, and the costs of
           | financing old coal-powered plants have increasingly been
           | passed on to those who can least afford it. [1]
           | 
           | 1. https://www.msn.com/en-us/news/world/how-pakistan-s-solar-
           | en...
        
           | ZeroConcerns wrote:
           | Previously, pretty much everyone (not just 'rich people',
           | although, well, 'rich' is relative here, of course...) had
           | diesel generators, which were not connected to the grid,
           | since that would be seriously expensive, plus syncing would
           | be pretty much impossible anyway.
           | 
           | With solar, you can feed back into the grid much more easily,
           | to the point that this is the default. This sort-of doubles
           | the load on the grid (not exactly, but you get the idea),
           | since both 'consumption' and 'production' need to cross the
           | same wires.
           | 
           | This is a problem even in, like, Germany, where the grid
           | operator can send a "kill signal" to local solar inverters to
           | shut down. In Pakistan, I can't even imagine...
        
           | elzbardico wrote:
           | Because storage is incredibly expensive and thus, for every
           | GW of installed solar capacity you need and an exact another
           | GW reserve capacity from other sources for the rare times
           | when the sun doesn't shine (like, for example, during the
           | night or during large spells of bad weather).
           | 
           | Besides being intermittent, solar and wind are not really
           | dispatchable, that is, the grid operator doesn't have many
           | levers to control the power output of a plan, and thus this
           | imposes more stress on the other dispatchable power sources.
           | 
           | Some of those backup sources are not very flexible and take a
           | long time to turn on and off, like coal based, and a lot of
           | nuclear plants. Others, can be brought up online, ramped up
           | and down faster, like gas turbines and hydro.
           | 
           | But other than gas turbine, most other firm sources economics
           | are based on a predictable demand and a minimum duty cycle. A
           | nuclear plant is very capital expensive, have an excellent
           | capacity factor, but, it can't pay itself and its investor if
           | it is not going to be run most of the time.
           | 
           | Base load is cheaper, because you dilute fixed costs, peak
           | load is more expensive, because you sell less units to dilute
           | your fixed costs.
           | 
           | Despite whatever the renewable lobby says, experience has
           | shown over and over, that after a certain proportion of
           | intermittent generation in a grid, large frequency
           | excursions, deteriorated economics and frequent load shedding
           | events are rather the norm than the exception.
           | 
           | AC grids are stupidly complex beasts. Most politicians,
           | journalists and investors that drive our current discourse on
           | the grid don't have even the most basic pre-requirements to
           | understand it.
        
             | k1musab1 wrote:
             | This exact issue lead me to follow the grid orchestration
             | research out of the Oak Ridge Laboratory. The building
             | blocks already exist to enable this. An interconnected
             | smart network of renewables can become a stabilizing force
             | in the overall grid. Off-peak storage would still be
             | required, but would no longer need to be "stabilizing"
             | (turbine or other similar generator), and can be simple
             | batteries.
        
             | londons_explore wrote:
             | All these problems become solved if you have realtime
             | market pricing.
             | 
             | Nobody would bother to install rooftop solar if daytime
             | power was super cheap on every sunny day, yet expensive at
             | night when their solar isn't working.
        
               | kryogen1c wrote:
               | Wouldn't this model price out poor people? Doesn't that
               | mean the most vulnerable people cant afford the services
               | when they need them most, ie max hot/cold?
               | 
               | Changing the utility to a market sort of defeats the
               | point of trying to optimize the utility.
        
               | londons_explore wrote:
               | A typical user still pays the same on average in a
               | market.
               | 
               | Just they might pay more in some hours and less in
               | others.
               | 
               | Some market systems have gotten bad press over huge bills
               | (eg. Texas), but that only happens when only a small
               | chunk of users participate in the market, whilst others
               | are on fixed pricing and therefore don't care about
               | usage.
               | 
               | When everyone participates, supply and demand make sure
               | the price never goes super high, simply because there are
               | enough people who will turn off stuff to save money.
        
             | gpm wrote:
             | This is all true except for the fact that storage is not
             | incredibly expensive anymore, which invalidates every
             | single conclusion you reach. Storage is now reasonably
             | affordable, and the trend suggests it will soon be
             | incredibly cheap.
        
               | spwa4 wrote:
               | Which will make the problems of the rich disappear and
               | the problems of the poor and the state ... worse.
               | (because the costs of the state are paying off loans for
               | expensive generation, costs which they recover from the
               | poor)
        
               | triceratops wrote:
               | The state can default on the loans too. It sucks and it
               | will make future financing more difficult. But it remains
               | an option. No such thing as risk-free lending.
        
         | tibbydudeza wrote:
         | Price of Chinese PV panels and inverters and batteries have
         | dropped so much and there has been financing schemes available
         | where you get the installation for free and pay per usage
         | cheaper than what the utility company charges and it is more
         | realiable.
        
         | Havoc wrote:
         | Did whoever named those streets have a stroke?
         | 
         | 20, 23, 25, 27, 28, MDR 7, 32, 33, no name at all, 39, 40
         | 
         | And they're not even unique...they recycle them a kilometer
         | further. WAT
        
           | ssl-3 wrote:
           | It appears that the recycled street numbers each appear on
           | different blocks.
           | 
           | Street 6, for instance: I've found it twice so far.
           | 
           | But they're still distinct, in that one Street 6 is within
           | Block M 3 B, and another is within Block M 7.
           | 
           | Which appears to suggest that blocks are more important at
           | identifying an address than a street name is, and if that's
           | the case then that works just fine.
           | 
           | And indeed, a distinct address appears to be something like
           | this: _Plot 15, Block M 7 Lake City, Lahore, Pakistan_. Plug
           | that into Google Maps and you 'll see what I'm seeing (and
           | note that the string doesn't include a street name at all).
           | 
           | It does seem weird to my wee little Ohio-trained brain to
           | identify a building by what block it is on more than the
           | street it is facing, but then: Canadian post codes and
           | Hungarian addresses also look weird to me, and also work fine
           | in the places where they're used.
        
             | abdullahkhalids wrote:
             | That's correct. In Pakistan, typically cities are broken up
             | into housing societies. Each society is broken up into
             | sectors/blocks, which are typically indexed by the
             | alphabet(A, B, C, ...), but occasionally, one will see
             | block M7 or sector B2 etc. In each such sector, each house
             | has a unique numbered address.
             | 
             | Some larger societies are first broken up into "phases" and
             | then into sectors/blocks.
             | 
             | Street numbers are typically not required in an address,
             | but are often provided as helpful guidance.
             | 
             | Not a great system, but still better than Calgary's system
             | (where I studied), which might be the worst system I have
             | ever seen. You can't navigate at all without a map.
        
           | purerandomness wrote:
           | Reminds me of "Falsehoods programmers believe about
           | addresses" [0]
           | 
           | [0] https://www.mjt.me.uk/posts/falsehoods-programmers-
           | believe-a...
        
           | SECProto wrote:
           | You have an inbuilt assumption about the purpose of a street
           | name. Compare it with addresses in Japan [1], where some
           | streets don't even have names. I don't know anything about
           | Pakistan, but i wouldn't be surprised if the street name is
           | solely to differentiate within some small geographic area.
           | Looking at street view[2] from a nearby real estate
           | development supports this
           | 
           | [1] https://en.wikipedia.org/wiki/Japanese_addressing_system
           | 
           | [2] https://maps.app.goo.gl/sfoKSP5yRU41yS8w5
        
       | bitxbitxbitcoin wrote:
       | How many years before this happens in parts of the United States?
        
         | hamdingers wrote:
         | In California, grid-tied rooftop solar was putting energy
         | prices into the negative so often that they reconfigured the
         | NEM to discourage export back to the grid and encourage battery
         | storage.
        
           | Animats wrote:
           | It seems to have worked, too.[1]
           | 
           | Batteries are the invisible change in the power business.
           | They don't take up much land area. They're not visible to the
           | public. Just being able to charge batteries during low power
           | cost periods changes the whole economics of the industry.
           | 
           | Whether battery banks should be allowed to sell back to the
           | grid is a tough question. Texas says no.[2] It's potentially
           | "dispatchable" power, but only until the battery runs down.
           | 
           | [1] https://www.latimes.com/environment/story/2025-10-17/cali
           | for...
           | 
           | [2] https://www.ercot.com/mktrules/keypriorities/bes/ktc8
        
           | _whiteCaps_ wrote:
           | And it's messing with our utilities in BC because we were
           | buying the daytime oversupply in California and selling the
           | hydro generated power back at night. They've had to adjust
           | plans as battery storage comes online.
        
         | newsclues wrote:
         | Already does in some cases but the utility companies have
         | fought back and they can buy laws and regulations to slow down
         | the process and protect profits.
        
         | jillesvangurp wrote:
         | Up to the locals in the US. Depends what their pain threshold
         | is for falling behind and looking a bit behind the times. I
         | think FOMO is going to be a big driver in a few years. This is
         | not a left vs right topic. It's a money topic. And my
         | impression of the US is that they love getting stuff on the
         | cheap. Solar energy should be such a thing and it's getting
         | painfully obvious that the US is paying a steep price where the
         | rest of the world isn't. If I'm reading the situation correct,
         | that is already annoying the hell out of a lot of traditionally
         | republican leading states and not because they are tree-
         | huggers.
         | 
         | The right question to ask is whether places like Mexico are
         | going to politely wait for the US to get its act together or
         | whether they'll just go ahead and start electrifying their
         | country and industry and reducing their cost levels. The
         | current isolationist policy works both ways. Very sunny place,
         | Mexico. Great place for solar and batteries. And once you have
         | those, Chines EVs produced locally might work very well. And
         | they can export those further south.
        
           | kragen wrote:
           | Mexico could start producing synfuels with abundant solar
           | energy and exporting them to the US, but that is far from the
           | course plotted by President Sheinbaum, even though (or
           | perhaps because) her doctorate is in the use of energy.
           | Instead she's doubling down on oil drilling.
        
       | neebz wrote:
       | We switched to solar in 2021 expecting a 3.5-year payback.
       | Electricity prices rose so fast that we recovered the investment
       | in under two years.
       | 
       | Also the national grid is notorious for it's frequent blackouts
       | (load-shedding) since the early '90s. Solar allowed us to have
       | uninterrupted supply in the mornings and longer backups during
       | night.
        
         | toomuchtodo wrote:
         | Rough location (if you feel comfortable sharing ground truth)?
        
           | tibbydudeza wrote:
           | South Africa - load shedding is a curse word here :).
        
             | toomuchtodo wrote:
             | Great to hear about the fast payback period, wishing you
             | reliable power :)
        
               | kragen wrote:
               | tibbydudeza didn't post about a fast payback period.
               | Maybe neebz is his wife?
        
               | toomuchtodo wrote:
               | Broadly speaking, payback period in South Africa is very
               | fast due to similar grid economics to Pakistan.
        
               | kragen wrote:
               | But neebz may not be in Pakistan either. Oh, they are:
               | https://news.ycombinator.com/item?id=43622584
        
           | phreeza wrote:
           | https://news.ycombinator.com/item?id=43622584
        
         | testing22321 wrote:
         | We got roof top solar 1.5 years ago in Canada. Payoff will be
         | 6-7 years, but we got an interest free loan to cover it.
         | 
         | So we'll just pay what we would have for power for those years
         | ~$1000 a year, then we'll have free power for 20 more, saving
         | something like $20,000 for $0 investment.
        
           | applied_heat wrote:
           | Where in Canada?
        
       | woodpanel wrote:
       | Imagine being the CCP and you've managed to turn your industrial
       | capacity into the world's single largest renewable energy source.
       | PV's Saudi-Arabia.
        
         | infinet wrote:
         | There were similar comments on HN. The argument goes that since
         | it takes energy to produce PV panels and wind turbines, China
         | effectively is an energy exporting country. What's even better
         | is some of the PV and turbines are produced with renewable
         | energy. And unlike oil and gas, which are used only once, PV
         | panels and wind turbines generate power for many years.
        
       | unglaublich wrote:
       | Great, you can easily switch them off or even better, store heat
       | under ground for the winter.
        
         | kragen wrote:
         | Lahore doesn't really have a winter as such:
         | https://en.wikipedia.org/wiki/Lahore#Climate
         | 
         | Air conditioning is, however, life-changing.
         | 
         | Thermal energy storage can potentially power air conditioning,
         | but it isn't a very well developed technology.
        
       | SackSolStr wrote:
       | The payback periods get me confused. A relative set up solar a
       | year ago in one of the sunniest places in Europe, the Canaries,
       | cost EUR7,000 for 6KW. He just ran the math on it and found out
       | that the payback period is 15 years. The only way to make it
       | profitable is government subsidies. How can it be profitable to
       | install solar in continental Europe where taxes and labor costs
       | are much higher while having much less sun? Why are we using
       | taxpayers' money to subsidize such negative NPV projects?
        
         | kragen wrote:
         | Your comment appears to be unrelated to Pakistan and, due to
         | the confusion of units, has been reduced to nonsense. Moreover,
         | your implied calculations don't work out.
         | 
         | If we assume that you meant EUR7000 for 6 kilowatts peak (not 6
         | kelvin wurtzite henries or 6 kilowatt hours, neither of which
         | is sensible) the probable answer is that your relative paid 25x
         | the current market price for their solar panels and therefore
         | got 25x the payback time. However, if we assume EUR0.12/kWh and
         | a 20% capacity factor, 6 kilowatts peak would average 1.2
         | kilowatts, which is 10520 kWh per year, which works out to
         | EUR1260 per year, which would be a payback time of 6 years, not
         | 15 years.
         | 
         | Moreover, another way of saying that the payback time on a
         | durable investment is 15 years is that the investment returns
         | 6.7% per year. That would be a highly profitable investment,
         | even without government subsidies.
        
           | testing22321 wrote:
           | > _You seem to have created this account just to troll_
           | 
           | I find it fascinating that someone is willing to pay for
           | accounts to swing opinions or seed FUD on a topics like solar
           | panels.
           | 
           | It's happening here, it's clearly happening everywhere on
           | every topic.
        
             | kragen wrote:
             | HN accounts don't require payment.
        
               | testing22321 wrote:
               | Someone is paying either real people to do this kind of
               | thing, or for bots or LLMs to do it.
               | 
               | Someone wants to sway opinions, and they think it matters
               | enough.
        
             | SackSolStr wrote:
             | Or someone who lurks here, but never posts. Not everybody
             | has an account here. I was just curious because I was
             | talking my friend who has the solar just earlier today and
             | he was a bit upset when he ran the numbers.
        
             | kragen wrote:
             | (Accusation removed from parent.)
        
           | SackSolStr wrote:
           | sorry yes. He told me, installation is 6,000 W and is about
           | 91% efficient at peak. 12 460W panels. panels point in
           | optimal direction. In spain he sells excess to grid at
           | EUR0.04 per KHW. Lowest cost of importing is EUR0.085 for KHW
           | at night, about EUR0.22 at peak hours. He ran the numbers on
           | power not bought (self consumption) + power sold, over a
           | year. He said it comes to about EUR500 for the year. He added
           | this really surprised him and he started asking around, and
           | this seems to be typical for rooftop solar in the Canarias.
        
             | kragen wrote:
             | That's a 7% yearly ROI, which is a pretty decent number,
             | better than you'd do on average in the stock market and
             | more predictable. If he had a little storage so he didn't
             | have to sell any, it would improve further. But also 6000W
             | of panels in the low-cost category now costs EUR300:
             | https://www.solarserver.de/photovoltaik-preis-pv-modul-
             | preis...
        
               | SackSolStr wrote:
               | You need more information to calculate the ROI. I gave
               | you the peak efficiency, Which comes from clean panels
               | and no clouds. The average efficiency is closer to 70%.
               | While the canaries are pretty sunny, the panels get dirty
               | very quickly (fine dust from Sahara), Actually, if you
               | count cleaning costs, the ROI goes down even more. And
               | also consumptions is at its peak in the evening when
               | there is no sun. He was thinking about getting storage, A
               | Tesla Powerwall 3 installed is about EUR11,000, No way
               | that is worth it. My impression is that places where ROI
               | is much better is also places where you get more than
               | EUR0.04 per KWH.
        
               | kragen wrote:
               | That isn't the efficiency, which is a number somewhere
               | under 23%, dividing the number of joules of light into
               | the panel by the number of joules of electrical power out
               | of it. Maybe you mean that at peak he gets 91% of the
               | advertised 6kW, i.e., 5500W?
               | 
               | Anyway, you said they paid EUR7000 and get back EUR500
               | per year, which is enough to calculate the ROI at 7.1%
               | per year.
               | 
               | Powerwalls are indeed extremely overpriced. But battery
               | prices are down to below US$70/kWh (US$19/MJ, EUR17/MJ);
               | if we assume the maximum production in a day is about
               | 25%, that's 36 kWh (130MJ), so it would be about US$2500
               | for that amount of battery. But probably even EUR500 of
               | battery (7.2kWh) would make a big dent. That would be
               | 1800 watts for four hours in the evening.
               | 
               | Depending on the type of evening consumption, it might be
               | possible to ameliorate it dramatically with various kinds
               | of thermal storage, or even plugging the washing machine
               | into a timer. Those are much cheaper than batteries.
        
           | magicalhippo wrote:
           | > the probable answer is that your relative paid 25x the
           | current market price
           | 
           | Where do I get 450W panels for $12 each?
        
             | kragen wrote:
             | pvXchange, but they're EUR23 because you fucked up the
             | math: https://www.solarserver.de/photovoltaik-preis-pv-
             | modul-preis...
             | 
             | EUR12 would be 44x cheaper (7000/6000/(12/450) [?] 44).
             | Maybe in a couple of years.
        
               | magicalhippo wrote:
               | I assumed 7k installed, so roughly half for the panels.
               | 
               | So how many do you need to buy to get that EUR23 price?
        
         | testing22321 wrote:
         | Those numbers sound wrong.
         | 
         | I have 7.8kw in Canada, and if I paid out of pocket payback
         | would be 6-7 years.
         | 
         | We pat $0.13 per kWh from the grid, get a one for one credit on
         | anything we feed in. System makes 7.8Mwh in a year.
         | 
         | What are your friends numbers?
         | 
         | Grid price is also pre-approved to increase not less that 5% a
         | year forever, so it will only go in my favour.
        
           | SackSolStr wrote:
           | In spain he pays more than that on average, and only gets
           | EUR0.04 for sold KWH. If it was one-to-one credit offset, as
           | you have in Canada, it would certainly be very profitable.
        
             | testing22321 wrote:
             | So then just use most of your power during the day and
             | you're better off than Canada.
             | 
             | It's not hard to use heavy power appliances only during the
             | day.
        
       | mannanj wrote:
       | Unpopular opinion: this is so contentious because it's more about
       | control.
        
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