‘The Economics of Load Defection’ Report calculates Economics for Customers in Five US Markets
On Tuesday, the Rocky Mountain Institute, CohnReznick and HOMER Energy, released a report 'The Economics of Load Defection' which calculated the economics through 2050 for people in five United States markets. According to the report, grid-connected solar-storage systems are more cost-effective than grid-supplied electricity. It will be more economic than grid power in areas like California, New York and Texas within the next one and one and half decade, as per the report.
The report 'The Economics of Load Defection' is follow-up of last year's 'Economics of Grid Defection' report. The new report included same places that the previous reports had included. Those places were Honolulu, Hawaii; Louisville, Kentucky; Los Angeles, California; Westchester, New York and San Antonio, Texas.
The new report used Homer Energy's modeling software and United States Energy Information Administration data. Then, it modeled grid-plus-solar, grid only and grid-plus-solar-plus-battery configurations to figure out what could be the lowest-cost options over time. The procedure was based on systems' per-kilowatt-hour levelized cost of energy equivalents.
Unlike the previous report, The Economics of Load Defection report examined at what pace the technologies will become efficiently attractive to begin eroding the profits. As the grid-connected consumers do not require purchasing as much PV and battery storage to fulfill their electricity needs, the load defection could proceed more speedily than the grid defection ones, as per the new report. The reports also stated that people will still buy utility power, but they will purchase in less amount.
The report also stated, "That will equate to substantial utility load loss well within the economic life and cost recovery period for major assets like central, fossil fuel-fired power plants and transmission and distribution grid infrastructure".