Five US States Now Ripe for Grid Defection: Study

Five US States Now Ripe for Grid Defection: Study

By Elisa Wood, Energy Changemakers

Grid defection is unusual — but it may not be for long.

Economic conditions are now favorable for electricity customers to generate their power off grid in five US states: California, Connecticut, Hawaii, Massachusetts, and New York, says a new study by researchers at Western University in Ontario, Canada.

High utility rates, falling solar and battery prices, and unfavorable net metering rules are factors creating “near term” incentives for electricity customers to cut the cord with their utility, according to the study, "The threat of economic grid defection in the U.S. with solar photovoltaic, battery and generator hybrid systems," by Seyyed Ali Sadat and Joshua Pearce.

While grid defection is rare, it has been growing —?and not just among the off-grid counter-culture. Wineries in California and a large hotel in New York City have defected in recent years, citing high costs and grid interconnection hassles. An upcoming episode of the Energy Changemakers podcast looks at an eco-conscious apartment building in Michigan being built off-grid in an urban setting.

Wider-scale grid defection is likely to re-invigorate concerns about the utility death spiral...Continue reading on Energy Changemakers.

Joseph Wiedman

Cleantech Advocacy - Climate Results

3 周

Grid defection has been on my mind lately as costs for alternatives to utility power continue to plummet. It’s been in the conversation mix for nearly my entire career. It’s creeping closer and closer to broader viability (economics don’t lie), but…there are serious practical hurdles to defection if your undergoing electrification. Two EVs, electric kitchen, electric HVAC, normal household load and suddenly one has a level of energy demand that solar + storage really cannot serve (yet) given the space available on a typical home/biz. IMHO, we definitely need to double down on regulatory reform to unlock DG cleantech. I’ve not seen a serious study (yet) that doesn’t show massive savings to consumers/society from smart deployment of DG technologies, but the regulatory state is far behind on undertaking the hard work needed to move with purpose towards the future.

Richard McCann

Energy, Water and Environmental Policy and Economics Senior Consultant

3 周

I've looked at both PG&E and SDG&E and its now beneficial for customers to defect. This unfortunately will lead to less well off customers being left with the remaining utility costs. This situation requires that the CPUC figure out how to reduced utilities' revenue requirements. Here's the analysis for PG&E: https://mcubedecon.com/2022/03/17/are-pges-customers-about-to-walk/

thank you for this article -- I've been thinking about this topic lately :)

Ken Urkosky

Working to Retirement

1 个月

The way politicians are messing up the grid, if you have the room you may want to consider it but be warned it is not cheap.

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José Ignacio Mora

Consultant & Speaker, Lean Quality Systems, Design Control, Process Validation, and Lean Manufacturing at Atzari

1 个月

How about a capitalist free market instead?

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