DV-80-01-1 -- Barrier or Incentive: Should Public Utilities Be Involved with Solar Energy? PDF

The role of public utilities in solar energy is being molded by often-contradictory legislation and regulatory edicts without an understanding of their impacts. Dispersed solar energy systems should not have a noticeable impact on utilities' energy distribution systems, especially gas distribution systems, for the next several years. Nonetheless, solar systems must be designed with consideration given to the operation of the entire energy network.
An analysis of the capital cost of various energy options shows that the system costs of solar will have to be reduced to $15/ft2 before it is competitive with even the next most expensive energy option.

Opponents to utility participation in solar fear their monopolistic control or other anti-competitive practices. Supporters point to the fact that utilities' actions are regulated and that they are in a good position to judge the relative merits of various energy supplies.