On a blog I read occasionally I saw this proposal for moving the country to more sustainable energy use:

My proposal is that electric utility companies currently heavily invested in their own coal-fired generation consider adopting the model used by Bell Telephone in the 1950’s. In exchange for a modest installation fee (say a few hundred dollars that could be prorated over a period of time) well within the budgets of middle and working class families with “green values,” the utility company would deliver and install solar panels on the consumers home — but, and here’s what I think is a new idea (at least as applied to electricity generation) the utility company would retain ownership of those panels in perpetuity, and charge the consumer a monthly fee for the electricity consumed from those panels.

Here’s the details — the one’s that I think would make this idea appealing to both the consumer and to the utility company. The individual solar installations would 1) be large enough to provide for ordinary, peak daylight hours electricity use and 2) would be tied into the grid allowing for both inflow and outflow. The utility company would benefit, because all excess electricity generated would flow into the grid for use by other customers (and unlike the situation where a household customer owns the solar installation, the utility company would own that excess flow outright and not be paying the customer with the installation for it). With each household or business that added solar generation, the electricity generating capacity of the entire grid would be expanded. The capitalization costs would be spread out over time — no huge up-front investment in generation capacity years before any new power can be generated. Moreover, following current phone company and cable company practices, the utility company could charge a very small (a few dollars) monthly maintenance fee to consumers, to cover costs of periodic maintenance and repair.

The consumer would benefit in two ways: they would have the assurance that in the absence of sunlight they would still have electricity, and conversely, during widespread power outages due to downed transmission lines they would also still have their locally generated power. Indeed, if several households in a neighborhood had contracted with the utility for solar panels, the entire neighborhood circuit might be protected from electricity loss during a widespread outage….From the utility company’s perspective, they are able to gradually expand their generating capacity, using “green” sources, with small, periodic expenditures of capital that can be partially charged to the customer (installation fees), and also recouped by feeding all excess electricity generated into the grid. Customers without the panels who depended solely on the grid would pay the standard rate for their electricity. By dispersing solar generation through out the households served by a utility, there would be a substantial increase in efficiency, as electricity would be consumed closer to where it was generated, reducing the losses to long distance transmission. Most of all this idea allows utility companies to make the transition to renewable electricity generation gradual and incremental, and thus less painful and more acceptable.

Intriguing idea, particularly since it lays the ground work for a far more radical shift. Once solar installations had penetrated a significant percentage of housing units, the citizens could stage a take-over of power-generation. Instead of “nationalizing” the power industry, we could “communitize” the power industry. Okay, I made that term-up by what I mean is transferring ownership of means of production to community or neighborhood groups. So even though this proposal, on the surface seems to expand the power and reach of utility companies, it does have within it the seeds for a more radical, decentralized energy economy.

Advertisements