Boston, MA 04/23/2014 (wallstreetpr) – SolarCity Corp (NASDAQ:SCTY) is $5.6 billion company that provides solar energy solutions through the production and sale or lease solar panels to residential and commercial customers. The company also distributes electricity from solar energy systems.
The company intends to provide its customers with solar energy storage systems to enable them keep excess solar power for future use. Therefore, the company plans to supply its customers with batteries. However, the move can be seen generating more heat than light as utility operators are up in arms. Utilities claim that SolarCity’s plan could kill their business as energy consumers are likely to abandon the grid.
As such, the utilities intended to impose higher connection fees for SolarCity Corp (NASDAQ:SCTY) perhaps to curb its efforts in supplying solar-power storage solutions. However, the California regulators came to the rescue of the company by stating that they are exempted from the utility fees.
Nonetheless, that does not mean that utilities are ready to put their guns down. They insists that if SolarCity should go ahead with its battery connection plan, and then its utility fees exemption should be only on a trial basis and to residential customers alone.
Misconception
While utilities are worried about SolarCity Corp (NASDAQ:SCTY)’s plans, the company said it does not intend to lead people away from the grid. Instead, it believes its efforts will strengthen the grid especially during peak demand periods.
The storage system will come on a 10-year contract and is expected to lead to a significant saving on energy for consumers. Moreover, it is expected to lead to better utilization of clean energy as power wastages will be curbed.
Utilities can also tap into the system to cut their energy generation costs.
Clean business
SolarCity Corp (NASDAQ:SCTY) is trying to come up with innovating ways to ensure that its clean energy business not only enhances customer experience, but generates higher and sustainable revenue. The company is regarded as the U.S. largest solar energy provider in terms of market value.
