Utilities Fade in the Sun

Back in 1880 a new company called AT&T grew out of the work of Alexander Graham Bell. For almost 100 years it maintained a monopoly over telephonic communication lines until the federal government used antitrust laws to break up AT&T. Technology matured and new telephone companies were born. Even before the breakup, competition was eroding AT&T’s market share. That was thirty years ago. Now there are hundreds of telephone companies providing services utilizing state of the art fiber optic, wireless and satellite technologies.

Welcome to the solar age. The sun shines all over the world and has the potential to create unregulated, independent energy everywhere. Currently electric utilities are in control of the lines of distribution, the cost of electricity and the ability for others to interconnect with “their” electric grid.

Modern electric utilities are no different than AT&T was fifty years ago. The solar industry is a growing threat to the monopoly of centralized utility generated electrical power.

It is just a mater of time before the public demands that policies shift and there is a true free market for electricity.

Solar energy will eventually force the electric utility industry to become a team player. The environment and the consumer will benefit with cleaner air and lower costs.

The evolution of decentralize energy is happening before our eyes. Electric utilities will become another monopoly dissolved by the evolution of technology and public policy.

Net Metering is fair for everyone!

Shop Local… for Energy

You have heard the term “buy local”, but we’re not talking about vegetables this time. Like locally grown carrots, solar energy produced by your neighbor is far more efficient when you cut out the economic and environmental costs of transportation.

More than 10% of the electricity generated at a centralized power plant is lost by the time it reaches your home. This means you are being billed for 10% more energy than you are actually consuming. Solar energy fed into the local grid not only addresses the issue of wasted energy due to transport, but also provides residents with an incentive to go solar when they receive payment for this market good through a program called Net Energy Metering (NEM).

Sounds like a win-win. Here’s the problem – utility companies don’t want to pay the fair market value of energy to those creating it on top of their roofs. Currently, producers of dirty energy receive greater compensation than those individuals creating solar power at home. The price paid for electricity should be consistent, regardless of how or by whom it was generated. When a home equipped with solar panels yields more energy than it consumes, these kilowatts are pushed back into the grid and distributed locally. However, the extra 10% saved thanks to decentralized distribution is not factored into NEM pricing. Meanwhile, utilities make out like bandits off the free solar energy returned to the grid by those who have invested personal dollars in sun power.

NEM benefits everyone – customers, utility companies, and the environment. We should all be championing the efficient production of electricity by fairly rewarding those who create it locally. What can be done? An independent review determining the hidden value of local power generation is an important first step. Let your state representatives know free market energy rate start at home!