Off-grid living: A boon for the wealthy, a burden for the rest?
Off-grid living is increasingly affordable due to reduced solar and battery costs, but initial investments may widen economic disparities, and reliance on diesel generators raises pollution concerns. Regulators should support grid connectivity.
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Recent research indicates that off-grid living, once a luxury for the wealthy, is becoming a financially viable option for many families due to significant drops in solar and battery costs. The study, co-authored by Joshua M. Pearce, highlights that advancements in solar technology have made it possible for households to disconnect from the power grid and save on electricity costs. For instance, a family in San Diego could invest $20,000 in an off-grid system and potentially save over $40,000 in electricity expenses over its lifespan. However, this shift raises concerns about economic disparities, as lower-income households may struggle with the initial investment required to go off-grid. Additionally, reliance on diesel generators for backup power can lead to increased pollution, countering some environmental benefits of solar energy. The research warns of potential "utility death spirals," where rising costs for remaining grid customers could drive more users to disconnect, further destabilizing utility companies. To mitigate these issues, the study suggests that regulators should create rate structures that encourage solar users to stay connected to the grid, rather than allowing utilities to impose higher unavoidable costs.
- Off-grid living is becoming more economically viable due to falling solar and battery costs.
- Initial investments for off-grid systems can lead to significant long-term savings on electricity.
- Economic disparities may widen as lower-income households struggle to afford off-grid setups.
- Diesel generators used in off-grid systems can increase pollution levels.
- Regulators need to create supportive rate structures to prevent utility instability.
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1 comments>The worst thing regulators can do is allow the electric utilities to increase unavoidable costs for their short-term profits. This can backfire, as utilities will lose customers entirely in the long run. With solar and battery costs continuing to decline, this problem is only becoming more urgent.
Nationalize all the power companies, run them with low cost to consumer, zero carbon to the planet mandate.
Why do we even allow private utility companies to turn a profit off a natural monopoly?
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