Utilities Tech Outlook Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Utilities Tech Outlook
Utility-owned rooftop solar power installations have the potential to significantly boost the adoption of solar energy. Customers tend to trust utility companies more, as they ensure the longevity of such projects.
Fremont, CA: The solar rooftop sector has witnessed substantial growth in the past decade, reshaping the solar industry landscape. The rapid expansion of rooftop solar has the potential to disrupt traditional business models, particularly the concept of utility-owned rooftop solar systems. This approach has gained immense popularity due to its attractive growth prospects and the financial security it offers to investors. Furthermore, utility companies are well-positioned to play a crucial role in facilitating the transition to clean energy, promoting solar utilization, and making it accessible to a wider audience.
The involvement of policymakers and regulators in fostering and overseeing utility-owned rooftop solar systems is pivotal. It is essential for the government to take necessary steps to eliminate barriers to accessing solar energy through utility-owned rooftop solar systems, ensuring a cost-effective and user-friendly model that instills confidence among consumers. Let's explore some of the key benefits of utility-owned rooftop solar systems:
Mutual Financial Advantages:
Allowing utilities to acquire and manage rooftop solar systems brings financial benefits to both the utility companies and landowners. This strategy can boost shareholder earnings by up to 5 percent over a ten-year period when compared to non-utility entities or traditional ownership structures.
Market Expansion Capabilities:
Utility firms can easily venture into and expand within new markets by entering into long-term contracts lasting ten years or more.
Building User Trust:
Utility-owned rooftop solar power installations inspire trust among users, leading to increased solar adoption rates. Customers feel more comfortable with utility companies overseeing these projects, ensuring their longevity.
Accessing New Markets and Customers:
Utility-owned solar systems have the potential to attract customers who haven't previously considered solar energy by offering on-bill financing plans. Additionally, the risk of users defaulting on power bills is relatively low compared to traditional ownership models.
Community Solar Initiatives:
Utility-led community solar schemes enable customers with limited roof space to access solar energy. Residents in high-rise and multistory buildings can collectively manage solar PV systems or sell the generated solar power to other occupants at a fixed tariff rate.
Customer Education and Engagement:
Utility companies serve as reliable sources of information and engagement for customers interested in the benefits of solar energy. They can play a vital role in persuading low-income groups to embrace solar power, emphasizing its cost-effectiveness, given their extensive reach among consumers.
