Duke Energy has a difference of opinion on consumer-generated electricity

Much of the green-utopia vision surrounding the smart grid involves decentralized power generation. Instead of a handful of power plants generating electricity on a scale of gigawatts, the smart grid talks about millions of rooftop solar installations sharing electricity laterally. This paradigm shift would make each homeowner operate like a miniature utility that sends excess power back to the grid for distribution where it is most needed. This would relegate utility companies to be responsible for generating base electricity for when the sun isn't shining, and for distributing power to where it is needed.

Duke Energy is having none of this. In an interview with Greentech media, Duke Energy CEO Jim Rodgers detailed his company's plans to own the entire grid, including the smart meter, the rooftop solar panels, and even the electricity control devices inside the home that manage energy intensive items like HVAC systems and appliances. "I'm going to own the batteries, I'm going to invest in the homes," said Rodgers of Duke Energy's vision of the smart grid. "I'm going to redefine the boundaries of the business."

Unlike Duke Energy, most other utility companies are waiting on low-cost solar power and energy control devices to become available to homeowners commercially. Rodgers says it isn't a question of profits so much as it is of capability. "I can beat Walmart in a heartbeat. I can beat Home Depot. I have a lower cost of capital, [so] why not own every piece of it?"

Duke Energy is hoping that by internalizing the entire smart grid, they can create more cost effective and energy efficient systems than an amalgamated effort from utilities and manufacturers of smart devices and consumer renewable energy products.