On Tuesday, Verizon unveiled its plan to spend $100 million on solar panel and fuel cell installations at 19 of its facilities. Under the new plan, Verizon will produce 70 million kilowatt hours of electricity with fuel cells bought fromClearEdge Power and solar panels bought from SunPower.

The announcement marks the telecom giant's most significant move towards a more secure and clean energy future. As ClearEdge Power CEO David Wright noted, Verizon's energy plan is “a stake in the ground for other technology companies.”

As non-utility companies such as Wal-Mart start to produce their own energy, rooftop solar companies are bringing solar energy directly to consumers. And as solar becomes cheaper, more reliable and more available, utilities risk becoming a back-up option, something which NRG Energy CEO David Crane noted back in March.

Whether they create their own solar company or buy stake in an existing one, utilities need to evolve their business model and bring solar into the fold. Otherwise, they risk being bypassed by their own consumer base—which is something they cannot afford.