- Declining costs for distributed energy technologies and increasing adoption of those technologies are transforming the electricity market and suggest grid parity for solar battery systems is coming sooner than anticipated.
- Utilities will likely experience significant revenue decay befor this customer defection trend, and the likelihood of favorable long-term customer defection signals the eventual demise of traditional utility regulatory models.
- The point where solar battery systems reach grid parity (economic and technical service equality with the electrical grid), is well within the 30 year planned economic life of central power plants and transmission infrastructure.
- An important question will be how utilities adjust their existing business models or adopt new business models—either within existing regulatory frameworks or under an evolved regulatory landscape—to tap into and maximize new sources of value that build the best electricity system of the future at lowest cost to serve customers and society.
- States such as Hawaii are already at grid parity for solar battery systems, and states such as New York and California could see grid parity in 2025 and 2031, respectively.
- Solar PV’s levelized cost of energy is expected to continue to decline through 2020 despite the likely end of residential and renewable energy tax credit and the reduction, from 30% to 10%, of the business energy investment tax credit.