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.