Solar Power Will Kill All Utilities !11!!
From baron-waste I get this article which claims that solar panels could destroy US utilities. Basically, the argument is:
1) Solar panels will eliminate peak load requirements - the most expensive electrical power.
2) People will convert to battery systems, providing 24/7 off-grid power, much like they ditched land telephone lines.
3) This reduction in demand will result in higher prices for the non-converting customer, forcing us to convert or demand that regulated utilities reduce prices.
To which I say, most politely, bullshit. Here's why:
First, unlike telephone lines, solar power requires construction and will always be a capital project for the average homeowner. Second, the battery technology needed to go off-grid remains way too pricey for all but the way-out-in-the-wilderness crowd, and there's no indication that will change soon. But even if it does, re-engineering the average US house will take time and money, resulting in a long and slow adoption curve. Also, somebody's got to maintain those systems, so there's a market for service contracts.
But there's another fallacy here - the idea that peak power is the most profitable form of electrical power. It's not - which is why Com Ed will pay you for the right to shut your AC off. Peak power is actually the least profitable form of power, because it requires building expensive plants designed to start up quickly. These plants have to be staffed 24/7, but don't run all the time. The most profitable power is base-load power.
Lastly, not every building can generate enough solar power to meet their needs. There's only so much roof area a building has, and many buildings (most commercial buildings, high-rises) consume more power than they could generate. Not only that, but as more Americans drive battery-powered cars like the Chevy Volt, electrical power demand will go up, especially at night, as those cars are recharged.
In short, utilities will have plenty of time to adapt and plenty of customers to serve.
1) Solar panels will eliminate peak load requirements - the most expensive electrical power.
2) People will convert to battery systems, providing 24/7 off-grid power, much like they ditched land telephone lines.
3) This reduction in demand will result in higher prices for the non-converting customer, forcing us to convert or demand that regulated utilities reduce prices.
To which I say, most politely, bullshit. Here's why:
First, unlike telephone lines, solar power requires construction and will always be a capital project for the average homeowner. Second, the battery technology needed to go off-grid remains way too pricey for all but the way-out-in-the-wilderness crowd, and there's no indication that will change soon. But even if it does, re-engineering the average US house will take time and money, resulting in a long and slow adoption curve. Also, somebody's got to maintain those systems, so there's a market for service contracts.
But there's another fallacy here - the idea that peak power is the most profitable form of electrical power. It's not - which is why Com Ed will pay you for the right to shut your AC off. Peak power is actually the least profitable form of power, because it requires building expensive plants designed to start up quickly. These plants have to be staffed 24/7, but don't run all the time. The most profitable power is base-load power.
Lastly, not every building can generate enough solar power to meet their needs. There's only so much roof area a building has, and many buildings (most commercial buildings, high-rises) consume more power than they could generate. Not only that, but as more Americans drive battery-powered cars like the Chevy Volt, electrical power demand will go up, especially at night, as those cars are recharged.
In short, utilities will have plenty of time to adapt and plenty of customers to serve.