Emerging Economic Viability of Grid Defection in a Northern Climate Using Solar Hybrid Systems

Joshua Pearce 28 PAGES (12515 WORDS) Article
Subscribe to access this work and thousands more

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.

Subscribe to access this work and thousands more
Overall Rating

0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

Joshua, P (2019). Emerging Economic Viability of Grid Defection in a Northern Climate Using Solar Hybrid Systems. Afribary.com: Retrieved April 18, 2019, from https://afribary.com/works/emerging-economic-viability-of-grid-defection-in-a-northern-climate-using-solar-hybrid-systems

MLA 8th

Pearce, Joshua. "Emerging Economic Viability of Grid Defection in a Northern Climate Using Solar Hybrid Systems" Afribary.com. Afribary.com, 15 Apr. 2019, https://afribary.com/works/emerging-economic-viability-of-grid-defection-in-a-northern-climate-using-solar-hybrid-systems . Accessed 18 Apr. 2019.

MLA7

Pearce, Joshua. "Emerging Economic Viability of Grid Defection in a Northern Climate Using Solar Hybrid Systems". Afribary.com, Afribary.com, 15 Apr. 2019. Web. 18 Apr. 2019. < https://afribary.com/works/emerging-economic-viability-of-grid-defection-in-a-northern-climate-using-solar-hybrid-systems >.

Chicago

Pearce, Joshua. "Emerging Economic Viability of Grid Defection in a Northern Climate Using Solar Hybrid Systems" Afribary.com (2019). Accessed April 18, 2019. https://afribary.com/works/emerging-economic-viability-of-grid-defection-in-a-northern-climate-using-solar-hybrid-systems