The Economics of Grid Defection

This report discusses the expanding role of distributed electricity generation and storage in the U.S. power system and how they alter or threaten the traditional utility business model. The combination of distributed solar and battery storage, referred to as solar-plus-battery, makes electricity customers less reliant on utility services as solar and storage technologies become cheaper and more commercially available. RMI refers to this phenomenon as grid defection. The report concludes that grid parity has already arrived in certain U.S. regions and will be achieved within the next decade or two for several other parts of the country.