The object of renewable energy is to kill off fossil fuels, as quickly as possible. Since these enjoy large subsidies and inflict huge external costs, there is no reason for renewables advocates and users to feel guilty about the minor advantages they do enjoy.

However I would guess that shale gas has significant load following abilities, so even without real batteries, grid might handle quite significant portion of solar panels. Especially in New Mexico where peak consumption is in mid summer due to air conditioning.

In Germany situation is far more difficult, because there are no shale gas available and peak demand is in the middle of winter.

The cost of this installation is thus borne by those that pay for electricity, mostly renters and companies. Someone has to pay for the wires and backup generation.

With wind a farm chooses between a PTC or ITC. Can’t have both.

* Solar Market Development Tax Credit (10% of cost, $ 9k max) » $9,000
* PNM – Customer Solar Large PV Program 10-100 kW: REC $ 0.05 per kWh x 7 yrs: to 2020 » $24,779 NM
* Renewable Energy Production Tax Credit » $19,113
* Federal Tax Credit (30% of Net Cost at Installation) » $64,200
* Total subsidies: $117 000

Subsidies are more significant than I thought, although also estimated $5 per watt are still quite high installation costs, so perhaps subsidies does reflect the true cost of solar, because installation costs in Albuquerque are higher than e.g. in Sydney.