On February 25, 2014, the Rocky Mountain Institute (RMI) and partners released a new report outlining the potential for appreciable customer defection from the electric grid in major markets by 2025. The report concludes the combination of solar PV and battery storage becomes cost competitive with retail electricity rates within the 30-year economic life of typical utility investments. Key drivers include the declining cost of distributed electricity generation and storage. Underlying these price declines is the growth of solar PV and the mass production of batteries for electrics vehicles.
The pairing of solar PV and batteries provides the opportunity for customers to disconnect from the electric grid. If costs come down as suggested in this report, the changes would upend the current net-metering debate as attention shifted to “customer defections.” We expect this report to spur increased interest and discussion around the possible impact of distributed solar and battery pairing within the electricity industry
This report is part of the Clean Tech & Sustainability Minute series. To view all featured Minutes, please click here.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.