Cato Daily Podcast Is Rooftop Solar a Threat to Stable Electricity?
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Apr 3, 2025 Lynne Kiesling, Director of the Institute for Regulatory Law and Economics at Northwestern University, dives into the intricate balance between rooftop solar and traditional energy sources. She discusses how small-scale solar challenges the stability of the grid, raising questions for regulators. The conversation highlights Hawaii's unique energy landscape and innovative ideas like balcony solar installations. Kiesling also explores the potential of regulatory sandboxes to foster new electricity models, making the case for a modernized approach to energy regulation.
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Electricity's Infrastructure Challenge
- The electricity industry faces a challenge in modernizing its 130-year-old infrastructure.
- Early 20th-century policy viewed electricity as a commodity requiring affordability, safety, and reliability.
Reliability vs. Threat
- Homeowners with solar and storage view it as reliable, while utilities may see it as a threat.
- Utilities worry about cost recovery if customers generate their own power, potentially raising costs for lower-income individuals.
Consumer Choice vs. Infrastructure Costs
- Consumers should make as many energy trade-offs as possible because electricity serves them.
- However, the high upfront infrastructure costs for reliable electricity are a major factor.