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The Economics of Load Defection

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

WHY IT MATTERS

Rising retail prices for grid electricity and declining costs for solar PV and batteries mean that grid-connected solar-plus-battery systems will be economic within the next 10–15 years for many customers in many parts of the country. Utilities could see significant decline in energy sales that would support needed grid investment. Thus it's critical that utilities, regulators, and other electricity system stakeholders urgently pursue reform on three fronts—rate structures, utility business models, and regulatory frameworks—to embrace solar, batteries, and other DERs as an integral, optimized part of the future grid, rather than as a threat to that grid.

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OTHER REPORTS OF INTEREST

The Economics of Grid Defection

What happens when solar and batteries join forces? Together they can make the electric grid optional for many customers.

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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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