Why aren’t the energy companies/providers asking to install solar panels for you on your roof?
Major energy producers across the country are grappling with
the pros and cons of residential power customers adding solar panels to their
roof tops. The solar panels
connect directly to the grids controlled and maintained by companies like
PG&E and Southern California Edison here in California. The pros include relieving stress from
over taxed grids and allowing companies to focus more on their big corporate
customers, the cons include losses from those smaller customers that are no
longer paying costs to maintain the grid.
So here’s a good question, why are these major energy producers letting
upstarts like Solar City and Sun Run make off like bandits in the solar
installations and leasing programs?
In It to Win It
It’s seems this simple: you have the names, addresses, and
energy consumption information of EVERY resident/customer. If I was SCE, I’d be leasing solar
panels to anyone who wanted them.
Much like some companies are doing now by going to big box retailers
like Wal-Mart and installing solar on expansive roofs, energy producers should
go to builders of new tracks of homes, and existing neighborhoods and turning
them into solar farms. SCE would
still be making all the money off of energy production and sells, while
greening the grid and cutting out the middle man. Instead of paying companies to build huge solar arrays out
in the desert that take years to get through EIRs (environmental impact
reviews), we can cut the time and costs on these projects in big ways, and
spend less on transmission lines.
Major energy companies have huge resources to be able to buy
large quantities of solar panels and receive mass discounts from bulk
purchases. One of the major pros
of having residential solar, is having energy produced in exactly the same
place it is being used, mitigating any loss of energy in transmission of power
that occurs at any energy production facility (nuclear, natural gas, coal,
etc.) Yet again, I don’t
understand why energy providers aren’t falling over themselves to enter into
residential solar. There are
several legal avenues through property law they could even take advantage of,
including granting of easements on roof tops to energy companies. Perhaps energy profits from residential
purchasers will drop as solar costs plummet below any other competitor, but at
least energy companies will be making that money and not third parties like
Solar City.
The genius behind Solar City and their brethren is that they
enter into lease agreements with their customers for 10 years. That’s guaranteeing you have these
customers for 10 years! Not one
time purchasers that fluctuate. Years
of revenue practically guaranteed.