The underlying costs of transmitting and distributing (T&D) electricity from distant sources are massive. The vast, centralized power grid, a remarkable feat of engineering, imposes a tax on businesses through substantial energy losses and infrastructure expenses. This article aims to analytically dissect these costs to illustrate why localized energy solutions o ffer a compelling pathway for small and medium-sized enterprises (SMEs). Economic Factors The journey electricity takes from a distant power plant to your business is laden with significant financial costs. These are ultimately recovered through your electricity rates. 1. Capital Expenditures Building and expanding the massive transmission and distribution network requires immense capital investment. These investments directly impact your electricity charges. Transmission Line Costs: The cost of transmission lines is influenced by numerous engineering and logistical factors [1, 2, 3]: Distance and Terrain: Longer distanc...