The $4 Hamster

After returning recently from a birthday party sleepover, my pre-teen daughter raved about the two new pets her friend owned: dwarf hamsters. They were so small and cuddly, she reasoned, leading inexorably to the dreaded question, “Can we buy one?” The answer was, of course, no. After emotional tactics failed, she tried an economic approach. “But they are only four dollars,” she replied. I was still not convinced.

The problem with hamsters is this. It takes more than buying a hamster to own a hamster. At a minimum, you need a cage, a wheel inside that cage, and ways for the animal to eat and drink, not to mention the daily maintenance of owning a living, breathing pet. A dwarf hamster might cost four dollars, but owning one costs a lot more.

It is puzzling why the same logic hasn’t dawned on solar power companies who are crying foul over a failed bill in Georgia. If the legislation had passed, solar power providers would have been able to install and finance solar PV systems for electricity customers, selling the power for fixed rates over the life of the contract. That arrangement, however, runs afoul of the state’s 1973 Territorial Act.

A recent article in the Atlanta Journal-Constitution does a good job explaining the politics of what is happening in Georgia, but glosses over the fundamental point that providing power to the public takes more than simply creating an energy source. It requires backup power to serve solar customers when the sun isn’t shining, expensive transmission systems that tie the grid together, and a host of other infrastructure that doesn’t change when a few hundred customers decide to ‘go green.’ Bottom line: you can’t just buy the hamster.

It’s no secret that major power providers didn’t like the proposal. Why would they? As a spokesman for Georgia Power explained, “So our revenues go down, and our fixed costs remain the same.” Consider, too, that almost all utilities have renewable energy initiatives that make financial sense on their terms and that distribute costs equitably among their customers. It’s easy to see why utilities large and small would oppose the bill.

The better question is “Why shouldn’t electricity customers like the proposal?” The answer is simple. The rest of us, the ones who don’t choose to finance $30,000 for solar panels, pay more for the fixed costs of our utility. As power customers of a regulated utility, the high cost of maintaining a system of generation and transmission is built into our power rates. The money comes from somewhere. In the case of Hawaii, the proliferation of solar meant as much as $10 more per month for customers who couldn’t afford to install solar.

There’s nothing wrong with wanting to use solar power, just like there is nothing wrong with wanting a dwarf hamster (or two in my daughter’s case). But let’s not kid ourselves. Beyond the warm and fuzzy feeling that both provide is a toll that someone has to pay. In other words, get a hamster if you want. Just don’t ask me to buy the cage.