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The challenging economics of US residential grid defection

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  • Hittinger, Eric
  • Siddiqui, Jawad

Abstract

Declining costs for solar photovoltaics (PV) and excitement about new technologies have led to speculation that self-sufficient PV/battery storage systems will soon become competitive with traditional electricity service. We compare a grid-tied residential solar system with an off-grid solar-plus-battery system at 1020 US locations, and calculate three effects of “grid defection” for each: the private net costs to the homeowner, the change in system generation costs, and change in system emissions. For the average US location, an off-grid solar system is almost double the price of grid-connected solar, is associated with higher system generation costs, and has no emissions benefit.

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  • Hittinger, Eric & Siddiqui, Jawad, 2017. "The challenging economics of US residential grid defection," Utilities Policy, Elsevier, vol. 45(C), pages 27-35.
    • Handle: RePEc:eee:juipol:v:45:y:2017:i:c:p:27-35
    DOI: 10.1016/j.jup.2016.11.003
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    7. von Appen, J. & Braun, M., 2018. "Strategic decision making of distribution network operators and investors in residential photovoltaic battery storage systems," Applied Energy, Elsevier, vol. 230(C), pages 540-550.
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    10. Rossi, Joni & Srivastava, Ankur & Hoang, Tran The & Tran, Quoc Tuan & Warneryd, Martin, 2022. "Pathways for the development of future intelligent distribution grids," Energy Policy, Elsevier, vol. 169(C).
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