Why Utilities Don’t Invest More In Solar (VIDEO)

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

The threat solar power poses to utilities has been discussed time and time again. In the US, the Edison Electric Institute (EEI) — the association that represents US investor-owned electric companies — has even warned its constituents about the potential “utility death spiral” that could come from solar and energy storage. But then the question rises: “So, why don’t utilities themselves invest more in solar?” There are various parts to the answer, but I think the most important one is highlighted very well (and in a very funny way) by Philip Alexander Hiersemenzel of Younicos in the video below. (Note that this is not necessarily the opinion of Younicos, but is Philip personally speaking about the matter.)

I didn’t want to spoil the answer/joke for anyone, but if you don’t do videos for some reason, the point (specifically in reference to German solar and utilities) was: Utilities have complained about homeowners and businesses making outrageous profits, 15% IRR guaranteed, from solar power. But they didn’t invest in solar more themselves because 15% IRR wasn’t enough for them… they require 20% IRR and up.

Ah, the tough life of a monopoly under threat.


Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video


Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Zachary Shahan

Zach is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director, chief editor, and CEO. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao. Zach has long-term investments in Tesla [TSLA], NIO [NIO], Xpeng [XPEV], Ford [F], ChargePoint [CHPT], Amazon [AMZN], Piedmont Lithium [PLL], Lithium Americas [LAC], Albemarle Corporation [ALB], Nouveau Monde Graphite [NMGRF], Talon Metals [TLOFF], Arclight Clean Transition Corp [ACTC], and Starbucks [SBUX]. But he does not offer (explicitly or implicitly) investment advice of any sort.

Zachary Shahan has 7324 posts and counting. See all posts by Zachary Shahan