Friday, December 5, 2014

Why Our Electricity Needs to be Supercharged

We are moving towards renewable energy. Period.

Whether you believe in climate change or not, we need an ever-increasing amount of energy in order to support our booming desire for more electricity and energy. In order to meet these future demands, we have to have renewable energy sources, such as solar energy.

Bloomberg reported recently on how Elon Musk and Tesla are continuing to build their 'Gigafactory' to develop high quality batteries. These batteries would be used in their cars but also have the goal of being used with SolarCity (another Musk company).

Having an efficient battery for an individual consumer is a disruptive force towards the electricity industry. Musk's batteries would allow individuals to store the energy that is not used during the day to power their homes at night.

This would destroy the utility companies.

Let's consider this. The utility company has an established infrastructure to provide a monopoly on electricity. Musk's batteries would have the ability to take people 'off the grid' and no longer rely on the utility company. As more people 'cut the cord' with the utility company, they will increase their rates. As the rates hit the middle class, they will switch to solar as well causing a vicious circle leading towards the demise of the utility company.

In another example, it would be the same situation if UPS and FedEx had to compete with a new company that could deliver via rocket ship efficiently. They can't compete.

Because of this, the electric companies are throwing millions of dollars into lobby the government to put fees on solar, to make it less inciting towards Average Joe American. Incidentally, this is another sign at how disruptive Musk's factory will be.

My hope is that in the next few years we will able to put solar panels on all homes and not have to worry about electricity ever again.

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