Electricity is a Natural Monopoly, but guess what? Solar is a Natural Alternative

Electricity and utilities. They are what is known as “natural monopolies”, and they are excluded and protected from all the governing laws regulating the operation of monopolies. “A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors. This frequently occurs in industries where capital costs predominate, creating economies of scale that are large in relation to the size of the market; examples include public utilities such as water services and electricity.”(1) In other words, a natural monopoly, is just as it sounds, a legalized monopoly.  However, in this case, it is quite justifiable…..


Can you imagine if there were six competing electric companies, each with their own power lines running down the street, or water pipes dug up everywhere across cities and towns? Would it be feasible, or even remotely possible to do so? Well, no. Currently speaking, a natural monopoly is more or less a necessary situation. Utility and electric companies use infrastructure that is a fixed part of  a municipality. If water companies were allowed to compete and run pipes wherever their customers needed them to be, there’d be nothing but constant excavation and construction going on. You just can’t  have an abundance of networks using this infrastructure without major changes taking place.  It works for phone services. The wires are minimal and do not require a disturbance of daily life or space.

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Yes, electricity is a Natural Monopoly, but guess what? Solar is a Natural Alternative. It’s “another way” . It’s clean, potent and sustainable. It’s source is omnipresent, and it’s here to stay. Solar Power is a decentralized, non-monopolized industry that is moving us into the future of energy at a rapid pace. Solar Energy usage is a movement that can’t be ignored, and the solar system in itself is getting better and better as technology advances. Prices for installation are dropping, and quality is rising. We have made leaps and bounds since solar was introduced. In 2010, the International Energy Agency predicted that global solar PV capacity could reach 3,000 GW or 11% of projected global electricity generation by 2050—enough to generate 4,500 TWh of electricity. Four years later, in 2014, the agency projected that, under its "high renewables" scenario, solar power could supply 27% of global electricity generation by 2050 (16% from PV and 11% from CSP). In 2015, analysts predicted that one million homes in the U.S. will have solar power by the end of 2016.” (3)

The forecast? Things are looking bright and sunny! Next time you see your electric bill, and feel the pressure of the “natural monopoly” in effect, remember that you do have a choice. In fact, you could actually generate enough electricity to sell BACK your excess power back to the grid!


If you’re thinking about upgrading your home or business with a solar energy system or other energy management products, make sure you choose a reliable team of Green Energy contractors. At Energy Management Systems (EMS) Contracting Corp, our passionate, highly experienced professionals are ready to help you take advantage of a high-quality, high-value solar energy system. From start to finish, our goal is to meet and exceed the expectations of our clients in Hillsborough, Pinellas, Pasco and surrounding counties. State of Florida License CGC1522936.

EMS was formed to offer commercial and residential clients in the state of Florida our expertise in making sense of all the technology and all of your options in this important alternative energy field. We offer state-of-the-art field-proven solar power and energy saving solutions. Our principals have over 25 years of construction technology background and have studied and utilized the latest solar power and energy saving solutions.

Contact a specialist in your area for a free consultation.

Written by Angela Christu