Source
- Abhilash Kantamneni, Richelle Winkler, Lucia Gauchia, Joshua M. Pearce, Emerging economic viability of grid defection in a northern climate using solar hybrid systems. Energy Policy 95, 378–389 (2016). doi: 10.1016/j.enpol.2016.05.013 free open access
- Summary: J. Pearce. Consumers Can Profit from Leaving the Grid. Huffington Post Green 5.31.2016.
Abstract
High demand for photovoltaic (PV), battery, and small-scale combined heat and power (CHP) technologies are driving a virtuous cycle of technological improvements and cost reductions in off-grid electric systems that increasingly compete with the grid market. Using a case study in the Upper Peninsula of Michigan, this paper quantifies the economic viability of off-grid PV+battery+CHP adoption and evaluates potential implications for grid-based utility models. The analysis shows that already some households could save money by switching to a solar hybrid off-grid system in comparison to the effective electric rates they are currently paying. Across the region by 2020, 92% of seasonal households and ~75% of year-round households are projected to meet electricity demands with lower costs. Furthermore, ~65% of all Upper Peninsula single-family owner-occupied households will both meet grid parity and be able to afford the systems by 2020. The results imply that economic circumstances could spur a positive feedback loop whereby grid electricity prices continue to rise and increasing numbers of customers choose alternatives (sometimes referred to as a “utility death spiral”), particularly in areas with relatively high electric utility rates. Utility companies and policy makers must take the potential for grid defection seriously when evaluating energy supply strategies.
Keywords
Energy policy; Electric utility; Photovoltaic; Distributed generation; off-grid; Solar energy
See also
- Levelized cost of electricity for solar photovoltaic, battery and cogen hybrid systems
- Performance of U.S. hybrid distributed energy systems: Solar photovoltaic, battery and combined heat and power
- Review of solar levelized cost
- PV and CHP Hybrid System
- Hybrid photovoltaic-trigeneration systems
- Simulations of Greenhouse Gas Emission Reductions from Low-Cost Hybrid Solar Photovoltaic and Cogeneration Systems for New Communities
- Photovoltaic plus combined heat and power
- PV and CHP Literature_review
- Vermont Utility helping customers leave the grid for fixed monthly fee
- Examining interconnection and net metering policy for distributed generation in the United State
In the News
Would You Live Off the Grid? - TV6 & FOX UP |
- Leaving the Electrical Grid in the Upper Peninsula- MTU News, Science Daily, Science News Online, ECN Magazine, Phys.org, Home Land Security, E Science News
- Leave The Grid In The UP? Michigan Tech Team Finds It Feasible - Tech Century
- Solar and Cogeneration is the Answer for Cold and Cloudy Climates - Solar Thermal Magazine
- Net metering changes could drive people off grid, Michigan researchers say - MidWest Energy News
- Off the Grid in the Upper Peninsula - ASME
- Report: Distributed resources to impact grid-based utility supply strategies - Smart Grid News
- How Utilities Are Fighting Back on Solar Power - Consumer Reports, Yahoo News
- State Senate bill may change solar power credit rules - TV6 Fox UP
- Subsidizing coal and nuclear power could drive customers off the grid -- The Conversation, Chicago Tribune, Lincoln Journal Star, Washington's Top News LaCrosse Tribune, Los Angeles Post ,Cache Valley Daily, Phys.org, The Daily Times (Blunt County)TN, Rapid City Journal, Independent Record