Rooftop solar is casting a $2 billion shadow over power generators across the eastern U.S.

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A few years ago, the Edison Electric Institute, published a document stating that Utility profits would be hit hard by solar power/energy storage getting cheaper.

Start with the increased cost of supporting a network capable of managing and integrating distributed generation sources. Next, under most rate structures, add the decline in revenues attributed to revenues lost from sales foregone. These forces lead to increased revenues required from remaining customers … The result of higher electricity prices and competitive threats will encourage a higher rate of [distributed generation consumer projects] …. These competitive and financial risks would likely erode credit quality. The decline in credit quality will lead to a higher cost of capital, putting further pressure on customer rates.

Of course Warren Buffet disagrees that all utilities will suffer – and keeps buying. If the standard electric utilities want to stay in the game – they are going to have to evolve.

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John Fitzgerald Weaver
Solar Power Plant Project Developer at Commercial Solar Guy
John Fitzgerald Weaver is a solar developer, digitally as the 'Commercial Solar Guy.' As a project developer and installer, he’s sold and managed 50+ solar projects, totalling over $25 million - with their sizes ranging from 5kW to 1500kW. He’s been involved in many aspects of the solar supply chain – as a company founder, developer, project manager, manufacturer, permit runner, salesman, contractor and financier, climbs mountains, played football, enjoys an IPA or scotch, needs to get away, and really loves this strange connection between politics, energy, finance, environment, etc in the energy world, and likes run on sentences.