US Utility Business Model Woes
When it’s just a quarter or a half of one percent of a utility’s customers that have their own PV and are selling their solar power to the grid at the retail rate, the utility doesn’t care. But energy storage and PV panel costs are dropping, and once that percentage of utility customers’ that are zeroing out their bill goes to 5, 10 or 15 percent then “it’s a big deal” said Chu.
Chu said he told utilities that PV and energy storage is going to come and they should “form a new business model” NOW so that what today is a potential revenue loss, could become an area of growth for them in the future. Plus, he said this model would eventually lead to a more stable grid for us all.
TSEA’s suggested micro-investment model suggested for TVA would complement the distributor’s suggested model, supplying solar energy at the most affordable prices with ownership of large solar farms in the hands of the ratepayer investors. The TSEA model avoids having to loan money from banks; instead, it will earn interest on the monies deposited in investments increasing the income the ratepayer investors make. The question is whether TVA and its distributors will accept these business model changes.