Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Want a daily digest of the top Nashville news?
Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.
Want a daily digest of the top Columbus news?
Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.
Want a daily digest of the top Dallas news?
Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Photo: Michele Eve Sandberg/AFP/Getty Images
The risk of wildfires in California prompted what may be the largest deliberate power cut in U.S. history. The growing frequency of such precautions could incentivize residential and commercial customers to turn to on-site power generation.
Why it matters: Such a shift could mean a boon for solar energy systems, but also a comeback for gas-powered generators in areas bearing the brunt of extreme dry weather exacerbated by climate change.
What's happening: The fires and power cuts are intertwined due to a complicated mix of factors, including ineffective management by energy companies, insufficient regulatory oversight, climate change, poor urban planning and suburban sprawl.
- As PG&E considers power cuts over the next decade, people and businesses in California are looking at alternatives, whether solar and storage systems or more “traditional” generators that run on gasoline, diesel, liquid propane or natural gas.
Between the lines: Gas-powered generators are priced at roughly $100 per kilowatt, making them a relatively affordable, and easy-to-source, fallback.
- Many also have multiple fuel options, making them resilient to shortages or price fluctuations.
- Solar energy systems might also get a boost from power cuts, but the upfront costs of a solar system (especially with battery storage) can be significantly higher than those of a generator.
What to watch: Because a solar energy system requires no fuel, the equipment's lifetime cost is lower than a generator's.
- However, the upfront cost of a solar energy system could still be more than most people or businesses are able or willing to cover when facing imminent power cuts.
Morgan Bazilian is a professor of public policy and director of the Payne Institute at Colorado School of Mines.