Are Solar Panels A Challenge To Utility Copanies

Solar panels are a commodity.

Are solar panels a challenge to utility copanies.

This is one of the biggest challenges of harnessing and utilizing solar power. The harsh reality today is that solar panels are essentially a commodity especially in the utility scale solar market where first solar operates. As solar energy installations began to grow across the globe manufacturers rushed to produce the panels and materials needed to generate the renewable electricity. At one level the problem is obvious.

But the issue is not limited to giant utility companies earnings potential. These can be a significant outlay and many panels may be required to generate useful amounts of energy. Again demand charges can be combated with solar panels that face west or southwest because producing more energy during peak times means lowering your maximum usage. Rooftop solar poses a major challenge for utilities which are used to sending electricity in one direction from power plants to homes.

Solar panels are required to be purchased and fitted in order that solar energy can be used. Yesterday the solar energy industries association filed a petition for review with the ninth circuit court of appeals of ferc order no. Even with record growth in the industry the large number of companies that jumped into the market created an oversupply of solar panels. The order eliminates the right of qfs to enter long term fixed rate contracts and arbitrarily extends the one mile.