Vitamin D is Out, Vitamin B(lockchain) is In: A look at how the solar energy industry is being revolutionized
Oana Jurjica, Adrienne Adjeleian, Henry Kim
Schulich School of Business, York University, Toronto, Ontario Canada

Aim
Although the energy sector stands to benefit from technological advancements, the industry has seen very little growth over the past few decades, remaining almost completely stagnant. While the era of prosumers and sustainable living is well underway, the industry has not made the appropriate adjustments to reflect the shift from non-renewable to renewable resources. As blockchain begins to disrupt a multitude of sectors, ranging from finance to supply chain, this has paved the way for many start-ups to begin exploring the potential this technology has with respect to solar energy. After analyzing recurring pain points in this industry, several applications were identified which aim to mitigate the issues, in order to meet global sustainability targets. These applications help prove that blockchain can eliminate international barriers, eradicate intermediaries, and significantly increase the efficiency of energy distribution, while reducing expenses for all parties involved.

Method
The applications brought forth were a result of identifying current pain points that exist within the solar energy industry. Amongst these, a few key areas were selected for careful analysis: the inability to match supply and demand, the difficulty of storing excess energy supply, the time it takes for consumers to switch energy providers and receive bills, the problem with lumping renewable energy in with non-renewable energy, and the costly and inaccessible nature of renewable resources. Extensive research was then done to select the current ventures which have the potential to significantly mitigate or eliminate the existing inefficiencies. Academic sources, corporate profiles, blockchain and energy forums, and news articles were used to compile the data presented.

Results
Blockchain-based application solutions which were highlighted include: smart-metering, peer-to-peer energy trading, electric vehicle charging and sharing, renewable cryptocurrencies, wholesale trading and settlement, and easing/improving access to energy. In addition, energy labs and blockchain research institutes, as well as platforms that group together various energy applications were also discussed. Within each application, a multitude of use cases were identified, from start-ups to mature initiatives. Important features were extrapolated to be applied to the respective pain point, which were then tied together at the end of each section.
The paper then explored the different challenges that exist within the space of blockchain and energy, particularly the limitations of the technology. Some of the weaknesses discussed include the technology not being 100% secure, the inability to alter information once it is recorded, loopholes within data ownership and protection policies, challenges of mass data storing, and other legal considerations.

Conclusion
The paper concluded that the deployment of blockchain in the renewable resource space will completely revolutionize the way in which individuals will consume electricity. Customers can now connect directly with energy providers and benefit from full transparency on their usage and fees in real-time. People living at the bottom of the income pyramid finally have a method of powering their homes with a clean, reliable source of energy, and those living in developed cities can create self-sustained micro-grids by installing solar panels on their roofs and sharing excess power with neighbours. After thoroughly analyzing all the different initiatives and their implications, a few key takeaways were outlined, as seen below:
➢ Even with the various prospective blockchain applications, it will likely be over a decade before any large-scale progress is made in the renewable energy sector. Due to the novelty of the technology, there is a lack of consumers who actually understand how blockchain works. This can also lead to a resistance to the change brought forth by these platforms.
➢ Comprehensive, research-backed pilots of blockchain applications are essential in proving value creation for solar energy market participants. Studies need to be thorough, with the majority of time being spent on ensuring the resilience of the core technology. This will allow application developers to establish a strong presence in the blockchain community and show their commitment to revolutionizing the solar industry.
➢ The most widespread use-cases currently being developed include smart-metering and peer-to-peer platforms. While most projects are still in the conceptual phase, LO3’s Brooklyn Micro Grid Project is the first of its kind to actually carry out a P2P marketplace for solar producers and consumers. The value potential of these applications can be realized through the increase in platform providers, which can also be attributed to the fact that these use-cases are easier to scale.
➢ Energy storage acts as both the most challenging issue, yet the simplest solution for taking advantage of excess energy supply and smoothing out the duck curve. With the price of lithium-ion batteries expected to decrease in the future, the challenge of cost-efficient storage is reduced, allowing solar energy providers to retain their energy to meet peak demands, regardless of whether the sun is shining or not.

The existing use-cases on blockchain and energy can be used to identify both areas of strength and improvement of implementing this disruptive technology in an industry that has seen negligible growth for the past few decades. Given the novelty of blockchain, and the uniqueness of its functionality, there are several threats that must be understood before becoming reliant on its features. Nevertheless, the energy sector is just one of the many industries that is being graced with blockchain’s promising capabilities, and adequate preparation can pave way for a completely transformed industry.