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.
For more solar power solutions and ideas, click here.
Save