The Changing Reality For #Electric_Utilities RSS Feed

The Changing Reality For Electric Utilities

The electric utilities are starting to feel mounting pressures due to the decentralized generation movement. As many already know, distributed generation represents perhaps the largest threat to the centralized utility business model. Many industry analysts are starting to view the coming electric utility disruption as inevitable, with PricewaterhouseCoopers recently stating that “We are witnessing considerable disruption in the power sector arising from a combination of policy, technological and customer change.” While the idea of the electric utility model being severely disrupted seemed ludicrous just a few years ago, this view is now widely subscribed

While the fight between utilities and rooftop solar companies have been extremely bitter over the past few years, the rooftop solar industry has recently started to take a more conciliatory tone. Given that solar+storage is currently much less economical than grid-connected solar, this recent disarming tone of rooftop solar companies only makes sense. Despite the current power that major electric utilities like Southern Company (NYSE:SO), Public Service Enterprise Group (NYSE:PEG) and Edison international (NYSE:EIX) hold over rooftop solar companies like SolarCity (NASDAQ:SCTY), collaboration will be optimal for both industries.

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