Solar Site Assessment for your HomeWhy solar power will change traditional power systems and when is the big question facing electrical generation companies, transmission companies, and investors? Utilities in the power generation and transmission business have been cash cows for investors for years. Many investors are beginning to wonder if their cash dividends are at risk. The quick answer is that it depends on how the existing companies respond to this new source of power. How do they manage the environmental impact message for the new and old systems? There is no question that there is less air pollution from solar and wind farm generation compared to coal, oil, and natural gas-fired generation plants. There is a lot of pressure to have a higher percentage of generation come from these sources as time goes on.

Why Solar Power will change Traditional Power Systems

Traditional power system companies must realize that they need to invest in this new technology to protect their investments in transmission systems and retain existing customers while being seen as being progressive from an environmental perspective. Progressive companies will make this transition and therefore protect their dividend stream for investors while producing low-cost electrical power.

The real threat comes from rooftop solar power which removes bottom line revenue from the system. This drives the per unit cost up for everyone else who does not deploy a rooftop solar installation. Remote areas and high cost per kilowatt areas will be the first to convert, simply because of the economics.

An aggressive approach to generating power by traditional power generation companies will help to keep costs to the consumer down. This action will also decrease the motivation to install rooftop solar generation. The jury is still out on how this issue will evolve. However, investors in utilities would be wise to pay attention to these issues.

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