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The Economics of Grid Defection

What happens when solar and batteries join forces? Together they can make the electric grid optional for many customers—without compromising reliability and increasingly at prices cheaper than utility retail electricity.

 

WHY IT MATTERS

Though many utilities rightly see the impending arrival of solar-plus-battery grid parity as a threat, they could also see such systems as an opportunity to add value to the grid and their business models. The important next question is how utilities might adjust their existing business models or adopt new business models—either within existing regulatory frameworks or under an evolved regulatory landscape—to tap into and maximize new sources of value that build the best electricity system of the future at lowest cost to serve customers and society.

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OTHER REPORTS OF INTEREST

The Economics of Load Defection

Grid-connected solar-plus-battery systems are coming, and soon could supply the majority of customers' electricity needs.

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The Economics of Battery Energy Storage

Most batteries deliver a single, primary service. Yet customer-sited, multi-use batteries can deliver the most services and value to customers and the grid.

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The Economics of Demand Flexibility

Utility customers have had three options for meeting their electricity needs: buy it, make it, or eliminate it. But now they have a fourth option: to shift it through demand flexibility.

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