Does solar power need a blockchain?

What does a blockchain actually do?

Strip away the jargon and a blockchain is a record book that many computers keep copies of. New entries are added in batches, and the rules of the network make it hard to quietly edit old ones. Its one real advantage is that people who do not trust each other, and have no common referee, can still agree on what was written.

That advantage costs something. These systems are slower, more complicated and harder to fix than a normal database, and some designs use a lot of electricity to stay secure. So the question is never whether the technology is clever. It is whether the problem needs a record with no central keeper.

Where would a ledger help a solar project?

The honest candidates are narrow. One is a registry where several independent parties, with no single trusted operator, need to record who owns a unit of generation or a claim about it. Another is automated settlement between parties who really do deal directly with each other, if a regulator allows it. A third is an audit trail that is meant to outlive any one company.

Even in these cases, a shared database managed by an industry body or regulator often does the job at lower cost. The ledger earns its place only when nobody can or should play that role. Claims about tokens and certificates are covered in renewable energy certificates and tokens explained.

Where is a plain database enough?

Most of what a home or community solar system needs is ordinary bookkeeping. Meters measure production and use. A utility or operator records it, bills it and keeps the history. Everyone already accepts that operator as the referee, because they are regulated, insured and answerable.

Look at a system where the sharing was done by good engineering rather than clever software. At Drake Landing Solar Community, 52 homes drew heat from one district loop fed by 800 flat-plate collectors and a field of 144 boreholes about 35 metres deep. Heat was measured, allocated and monitored by the project's operators. The results, including a solar share of 97% by 2012 and 100% in the 2015-16 heating season, came from collectors, storage and controls, not a ledger. See the project's performance results.

How can you test a blockchain claim?

Ask five plain questions. Who are the parties, and do they really distrust each other? Who runs the meters, and could that person falsify a reading before it ever reaches the ledger? What happens when a record is wrong? What does the system cost to run, in money and electricity? And what would the same service look like on an ordinary database?

The meter question matters most. A ledger can make sure a number is not changed after it is written. It cannot make sure the number was true when it went in. If the sensor is wrong or the owner is dishonest, the permanent record is permanently wrong. Good monitoring, covered in solar system monitoring: what to track, does more for your system than a token ever will.

What should a homeowner do?

Do not pay extra for a solar product because it mentions blockchain. Judge it on panels, inverter, installer, warranty and the credit or buyback your utility actually provides. Start with what solar panels cost in Canada. If a marketing pitch leans on a ledger, the red flags guide lists what to check. Rules for connecting and selling power vary by province and utility, so check your provincial regulator and your utility.

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