Distributed generation: Devolving power
WHO needs the power grid when you can generate and store your own electricity cheaply and reliably? Such a world is drawing nearer: good news for consumers, but a potential shock for utility companies.
Join the discussion below, or Read more at The Economist.
#1 Mar 9, 2014
"But by far the most disruptive new power source is solar panels. Morgan Stanley reckons that if Teslas factory provides the cheap batteries it promises, Californian households will be able to run off a solar-plus-storage system costing just $350 a year. Buying electricity off the grid may cost them around $750 a year by then."
$750 a year? Morgan Stanley needs to re-reckon that number. In Northern California, you need to heat your residence to keep it comfortable. In Southern California you need to cool your residence to keep it comfortable. In Southern California $750 a MONTH during the summertime is average, even for homes of around 1,500 square feet. Unless Tesla can get the battery packs down to around $100 per KWh or less per KWh of storage, that $350 a year number with storage is way off. Unless the electric utilities embrace some kind of Voltage to Grid scheme, V2G, keeping the price of electricity down to the 4-5 cents per KWh range, I'm not seeing these prices ever becoming reality.
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