The challenging economics of US residential grid defection

Eric Hittinger and Jawad Siddiqui

Utilities Policy, 2017, vol. 45, issue C, 27-35

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.

Keywords: Grid defection; Economic analysis; Solar; Energy storage (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:45:y:2017:i:c:p:27-35

DOI: 10.1016/j.jup.2016.11.003

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