A trend for solar power trading in locally produced solar energy is catching on across the globe.
In the New York borough of Brooklyn, you can now purchase ‘organic local’ solar power right off your neighbour’s roof.
A Brooklyn start-up lets residents auction rooftop solar power directly to their neighbours, creating a market for home-grown clean energy.
The scheme is an example of a sharing economy, where transactions are made through online marketplaces – the same concept behind Airbnb and Uber.
Using locally produced energy is also part of the trend for sourcing ethical, clean products.
People already care about the environmental impact of the products they use and how the food they eat is produced. Now the trend is starting to include electricity.
Why the traditional power grid model broke down
The power grid traditionally operated as a ‘pipeline’ system, with electricity flowing in one direction only – from the power plant to the consumer.
When consumers stared generating home solar power and returning it to the grid, the pipeline model broke down.
The grid is now similar to the internet, as people download and upload electricity depending on their needs.
The next disruption to the grid is trading technology known as ‘blockchain’, which allows people to trade electricity directly with each other.
In essence, a blockchain is a digital ledger of buying and selling, and a regulator that moves power between participant consumers.
The blockchain is programmed to respond automatically, buying or selling solar energy based on consumer requirements.
Solar power trading systems catch on in Australia
In February this year, ARENA and energy tech start-up GreenSync launched a home-grown exchange system called deX.
deX is an Australian marketplace for energy between consumers, businesses, communities and network utilities.
GreenSync’s Mooroolbark Community Mini Grid in Victoria was Australia’s first energy mini-grid operating in an established community.
Also available in Australia, SonnenCommunity is a household battery system with a focus on storing self-generated solar power for trading within communities.
