Blockchain technology is making the world a little greener and incentivizing the process. More renewable sources of energy such as solar, wind and even tidal energy have been gaining popularity. Individuals that install solar panels on their roofs, often give the excess energy they create back to the government, and receive a subsidy from the government for the electricity given.
Power Ledger, an Australian start-up and Clean Energy Blockchain Network are using the blockchain network to collect and digitize electricity related data of consumers. Consumers who want to share excess energy from their solar panels can utilize their blockchain platform for peer-to-peer trading with other consumers in need.
The existing method of tracking and billing electricity is cumbersome and solar power is wasted more often than not. Michael Powers, SunPower Stellar Soar’s founding partner said –
“Right now, solar producers are paid at regulated net metering rates, which are actually being reduced by regulators and the utility industry and across the U.S.”
Blockchain technology can make the electricity distribution more efficient. The peer-to-peer system is not currently viable when using the existing governmental platforms. Blockchain technology will ensure that the excess electricity is directly going to the people that need it, and will also ensure efficient payment to those that provide it. Using blockchain technology platforms will eliminate all intermediaries that currently exist.
Powers also added,
“With the free market system, solar producers will find new energy users who are willing to pay more for clean energy if they can’t deploy solar panels themselves. If the energy blockchain makes that possible, why wouldn’t we do it?.”
Blockchain technology has provided the energy sector with a way to develop the free market without interference from the government. Moreover, this will promote the use of alternative, renewable sources of energy in an incentivized format, which could mean that more individuals might consider setting up solar panels and producing solar energy.