While grid parity is where things are headed there are still many obstacles - starting with dollars and dollars of utility money to fight it. Start in Arizona to see the aggressive tactics used by utilities against grid parity. Grid parity will allow on-site power generation by independent and very small producers (a household) to be part of the discussion of the future of energy production in the United States, instead of beening dismissed as insignificant.
Quality improvements and cost declines in batteries, as the article reports, are a major tipping point to make on-site surplus power generation practical for a growing number of people and businesses. While not mentioned in the article, there are recent significant performance improvements in small scale wind power production systems designed for residential rooftop mounting. With further price drops, a system that combines rooftop solar and wind electric production with battery backup becomes a practical goal for an urban dweller - not just off-the-grid back-to-the-hills people. Adding a solar hot water component further reduces off-site power needs.
As more individual households become energy producers, the two-way potential of the grid begins to be realized. Up until now, the grid is primarily seen as a one-way street to the consumer. Deregulation has divided distribution from production but a lot of the same folks are still around and they would be happy if it stayed a one-way street. The continuing rise in on-site power production pushes the envelope though. I see two basic realities - first, less distributed power means less revenue and taxes and second, if a micro power producer wants to sell their power, they must be connected to the grid. Connection will cost money. Clearly a realignment of the present utilities vs. solar people paradigm is needed - the grid needs re-imagining with an emphasis on who is to receive the benefit - is it a democratic thing because everyone basically needs it or is it prone to corporate bottle-necks or choke points?
The inherent benefit of household power production is people keeping their money - the elimination of the massive wealth transfer from individuals to the corporations that control electricity production and distribution. People do not give up money streams without resistance. Corporations will go to great lengths to protect what they consider to be theirs. Grid parity is change - for forward looking people, it is a key element in a tipping point that can have significant effects on corporate and government revenues. Just as there are currently winners and losers, there are winners and losers to come. Hopefully these issues will soon be more commonly part of the discussion for everyone.
Grid parity: Why electric utilities should struggle to sleep at night
By Matt McFarland,
Meanwhile, energy upstarts are led by forward thinkers with disruptive track records and eyes on society’s big problems, such as climate change and our dependence on fossil fuels for energy. SolarCity chairman Elon Musk co-founded PayPal and leads Tesla, which could transform the auto industry.
NRG’s Crane speaks of having his company mentioned in the same breath as Amazon, Apple, Facebook and Google. It’s radical to imagine anyone feeling passionate about their source of power, but environmental concerns may make it common soon. New devices such as Nest’s popular thermostat are making consumers rethink what to expect from the companies and gadgets that manage their energy.
Crane highlighted the climate change concerns in a recent letter to shareholders: “The day is coming when our children sit us down in our dotage, look us straight in the eye, with an acute sense of betrayal and disappointment in theirs, and whisper to us, ‘You knew… and you didn’t do anything about it. Why?’”