Traditional Utility Companies Could Lose Half Their Market to Solar Energy
A rise in the use of solar power in New Zealand could have electricity utilities clamoring to make competitive profits. Two utility companies, Ergon Energy and Energex, have seen a drastic change in their annual reports this year, reporting that almost half of their market has been lost due to the installation of new rooftop solar arrays across the country. While Energex has seen solar as a threat, Ergon sees the jump as an opportunity to switch gears.
The growing presence of rooftop solar arrays in Queensland has made its citizens far less dependent on the traditional grid, which both utility companies’ reports relay. Embracing this inevitable change, Ergon has diverted their focus from investing in traditional poles and wires to planting cash in newer technologies that follow the growing demand for solar.
Some utility companies, like Energex, may try to deny the impact and permanency of solar power and alternative energy, but the market has spoken—it’s clear solar power is here to stay. Citi has found the same to be true in the United States as well, noting that solar energy will only get cheaper as time marches on. Their recommendation to traditional utility companies the world over is to accept the presence of solar energy as a viable power source, and instead of fighting it, offer their customers combination packages with traditional and renewable electricity.
Via Clean Technica
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