Friday, January 24, 2014

Solar in California, Premonition of Boom or Bust?

I recently came across an article that claimed solar growth in Clalifornia was larger last year, than in the last 30 years combined. It seems like an interesting trend, but some point out that might actually be cause for some problems for utility companies that could be passed along to consumers that aren't able to get into solar (the impoverished, renters, and those with bad credit).  While solar might seem to be perfect for many of our southern states, it is unfortunate that it might also be cause for creating an energy affordability disparity between those that can afford to take advantage of it and those that will be stuck with higher utility prices. From what I understand, the issue for utility companies boils down to the infrastructure costs and peak energy demand not scaling down along with the decrease in dedicated consumers, which leads to a need to increase the per kilowatt hour prices to maintain the infrastructure necessary to meet peak power demands. So, the more people that switch to solar, the more the price per kilowatt hour will rise for those without, unless solar consumers are stuck with a higher surcharge for being connected to the grid (or go completely off grid and invest in battery banks - which leads to plenty of issues when it comes time to dispose of the batteries). Overall, it seems like (barring advancements in battery technology) we might still have some tough policy decisions that will need to be made on utility pricing in light of potential solar booms. Just something I found interesting enough that I thought might be worth sharing here. It is strange to consider the awkward implications of increased economic disparity potentially becoming linked with this ecologically sound energy resource.

*The above picture is of an "earthship" in Northern New Mexico. Source link.

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