this post was submitted on 07 Feb 2025
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I would imagine it's something like this:
Say your electric company has a fixed budget of $1,000,000,000 and they have 500,000 customers.
Comes out to about $2,000 a year or $166 a month.
If 10% of their customer base goes solar, the companies fixed costs don't change, so $1B/450K is now $2,222 per year or $185 a month, an increase of $19/mo.
Budget goes up? They need to increase subscribers or increase rates.
Subscribers go down? They need to cut their budget or increase rates.
They’d better figure out a new business model. Solar and back up batteries aren’t going anywhere.
There's incentive to move to solar and batteries to avoid the rate increases due to solar installations reducing billable power delivery.