The regulated electric monopolies have entered a death spiral, as cheaper local alternatives have caused the grid to become more expensive. The high fixed costs of the grid are a primary driver for customers to save money by switching, which in turn leads to fewer customers covering the fixed costs and thus a higher rate for those remaining on the grid. Customers install solar because it is cheaper, causing less people to pay fixed costs of grid, making grid more expensive


The innovative and disruptive nature of local, clean energy positions well going forward as the stagnant nature of grid electricity will continue to fall behind more and more.

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Fact Code: g115