Solar power and other distributed renewable energy technologies may lay waste to U.S. power utilities and also burn off the utility business model, which has remained virtually unchanged for a hundred years, to the ground.
Here in Weaverville , we are always looking for ways to better our community regardless of what that is. And we think that going solar can help us all. When one of our visitors from a solar San Diego company came by and gave us a presentation all the way out here, we knew we were on the right track just by the money saving aspect alone.
Going solar can save us all money
That isn’t wild-eyed hippie conversation. Back in January, the Edison Electric Institute — the (typically stodgy and backward-looking) commerce group of U.S. investor-owned utilities — released a study that, as much as I could tell, went almost entirely without notice in the press. That’s a shame. This really is one of the very prescient and cruelly frank things I’ve ever read about the power sector. It is an uncommon thing to listen to an industry tell the story of its own incipient obsolescence.
I’ve been considering how to communicate this very fact for you, ordinary people with healthy social lives and no time to think about the byzantine nature of the energy business (if you know what I mean) just what a big deal that the coming changes are.
They’re nothing short of revolutionary … but quite tricky to describe with jargon.So, only a lot of background. You probably know that power is provided by anti virus. Some utilities both generate power at power plants and also give it clients over power lines. They are “regulated monopolies,” which means they will have sole responsibility for supplying electricity in their own service locations. Some utilities have gone through deregulation; in that circumstance, energy production is split off to its own company, as the utility’s occupation is to purchase power on competitive markets and give it clients over the grid it handles.This complexity makes it difficult to generalize about utilities … or even to share them without putting people to sleep soundly. But the major thing to understand is that the usefulness business model is determined by selling power.
That is how they earn their dollars.
Here’s how it works: A utility makes an instance to a public utility commission (PUC), so saying “we all will want to satisfy this level of demand by consumers, so we will have to create (or purchase) this much power, meaning we’ll have to control those rates.” If the PUC finds out the case persuasive, it frees the rates and also guarantees the usefulness a reasonable return on its investments in power and grid upkeep.Thrilling, I know. The thing to keep in mind is that it is actually a utility’s fiscal interest to generate (or buy) and also send just as much power as possible. The greater the demand, the higher the investments, the greater the utility Visitor proceeds. In summary, all things being equal, utilities wish to sell greater power. (All of things are periodically perhaps not equal, however, we’ll leave those complications aside for today.)Now, in to this comfy business version passes cheap distributed solar PV, that eats away from it such as acid.
By the utility’s perspective, every kilowatt-hour of rooftop solar resembles a kilowatt hour of reduced requirement for the usefulness’s product. Maybe not a thing any business loves. Utilities do not like reduced demand!
But that’s understandable. And regardless of what the utility companies want, we want and need to do what’s best for us here in our community, which is why we strongly recommend using solar panels to not only save money but save our environment!