Selling Energy vs Mining Bitcoin

Just a mind exercise here, but hear me out. If a company sets up renewable energy like solar or wind, why not just sell that power back to the grid instead of mining? I know people with solar panels can do that if they generate more than they use. But like, what if mining could make more money? What stops big utility companies from just mining instead?

In the US, there are rules in place for this kinda thing. Each state has Public Utilities Commissions limiting self-generated power. They basically work with utility companies to manage how much power you can sell back. So, even if you generate a ton, there are caps based on your historical usage.

And it’s not just state regulations that matter. The rates for selling power back to the grid differ across states. I've got solar in New Jersey and trust me, the payouts are pretty low. Most are around 4 cents per kilowatt. I mean, if I have a 100 kW setup and get 5.5 hours of sun, that's like 550 kW daily. If I'm using 7.9 for my business and 15 for mining, I'm only left with like 360 kW excess. Selling that might get me $14-$28 depending on the rate... not super appealing.

Yeah, it’s wild to think about how timing is everything in these deals. A developer I know had a sweet setup with a major ice cream company. But when they left, the guy was stuck with commitments on power usage. So then he teams up with a solar company and bam, they’re both in a better spot now.

I was almost in a similar deal with a guy who owns some heavy transformers. But he just didn’t get Bitcoin. He wanted cash guarantees instead of something risky, which my partner and I couldn’t swing. So yeah, we ended up with a smaller setup and kinda missed out on a bigger opportunity because he’s stuck in old-school thinking.

Looking back, it’s all pretty magical. I’m 64 and never thought I’d be close to doing okay financially. If things keep rolling, I might actually hit that 1 MW mark with a few projects. But yeah, the key is to think long-term. Like, my partners range from mid-20s to 64. We’re kind of diversifying our sources and it’s been working.

But businesses don’t just flip their models on a whim. Utilities have investors and boards. They’re all about long-term plans, not chasing every new trend. Just like back in the gold rush, the guys selling the shovels didn’t stop their businesses to start mining. It’s just not how it works.