| ID | 150754 |
| Title Proper | Emerging economic viability of grid defection in a northern climate using solar hybrid systems |
| Language | ENG |
| Author | Kantamneni, Abhilash ; Winkler, Richelle ; Gauchia, Lucia ; Pearce, Joshua M |
| Summary / Abstract (Note) | 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. |
| `In' analytical Note | Energy Policy Vol. 95, No.95; Aug 2016: p.378–389 |
| Journal Source | Energy Policy 2016-08 95, 95 |
| Key Words | Energy Policy ; Solar energy ; Distributed Generation ; Photovoltaic ; Electric Utility ; Off-Grid |