By Mari Hernandez | Climate Progress
The solar industry is booming across the U.S. and the numbers are staggering. Residential solar installations in 2012 reached 488 megawatts — a 62 percent increase over 2011 installations. And according to GTM Research, a solar photovoltaic (PV) system is now installed every four minutes in the U.S.
As rooftop solar and other distributed energy resources have begun to take off across the country, utility companies are becoming increasingly concerned about this “existential threat to their business.”
The threat, often referred to as the “utility death spiral,” goes like this: as customers choose to install solar panels or adopt energy efficiency measures, a utility will sell fewer units of energy and has to increase what it charges for electricity to ensure that it can still cover its fixed costs, such as grid maintenance and labor. As energy prices go up, more customers will look to energy efficiency and distributed energy resources to reduce their energy bills, which will continue to push electricity prices up and drive customers toward other energy sources and services.
Also: Report: Emerging Economies To Boost Solar Sector Capital Expenditures
A Solar System Is Installed in the US Every 4 Minutes http://www.greentechmedia.com/articles/read/america-installs-a-solar-system-every-four-minutes
If you’d like to discuss energy issues, contact Court Rich, Co-Chair of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
