Here’s a dirty little secret no one wants to admit: Capitalism doesn’t have the solution to all of humanity’s problems.
Let’s say a efficient utility has 1000 customers and needs $1.2 million dollars a year to keep wires on the poles, buy utility trucks, etc..
Math says, on average, every customer pays $1200 a year, or $100 a month. The books balance.
Now, 50% of the customers install LED lightbulbs, or puts solar panels on their roof, etc.. and their usage goes down 50%.
The utility still needs $12 million dollars a year for the wires, poles, trucks, workers, etc...
What is capitalism’s answer: 1) Customer’s bills are 1/2 of what they use to pay? Or:
2) Energy rates double?
The answer is #1 (at first) , then #2 (eventually).
Now imagine 999 customers went solar and you’re the last customer on the line. Your bill has to be $12 million or else the utility company goes broke.
Obviously, it’s a bit more complicated than these examples (as people still stay connected with less usage), but the principle is the same. It’s like when the nation gets a salary raise at work, then discovers that the price of everything goes up. Good ole supply and demand.
www.hawaiianelectric.com
cleantechnica.com
www.macrotrends.net
