A new study by Agile Electrification and the UC San Diego Design Lab finds 65% grid defection, where homeowners use self-generated power and rely less on the power grid, can save North Bay homeowners an estimated $150,000 over 20 years by reducing and stabilizing energy costs and protecting against future rate increases. The study demonstrates the value of “solar-led electrification,” a method for home electrification where homeowners transition gas appliances to electric alternatives and power their homes with onsite solar and battery storage.
Key Findings:
- Electricity has a disproportionate role in home energy costs: While natural gas accounts for the majority (60%) of energy use in the home, it makes up only 22% of the total energy bill.
- Grid-led electrification is expensive: Though electrified devices are more efficient than their gas counterparts, the higher cost of grid electricity makes the transition to electrification more expensive for homeowners.
- 65% defection exposes levelized cost of solar vs grid energy: Homeowners achieve optimal savings by reducing total grid energy imports by 65% and powering electric load with onsite solar.
- System sizing under NEM 3.0: Solar-led electrification aligns with recent changes to California’s net metering policies that encourage “self-consumption” of onsite solar and discourage solar exports to the grid.
“The study shows that when homeowners look at their total energy investment over the lifetime of their systems, combining solar with electrification of gas appliances is the most economical approach with the added benefit of decarbonization,” said lead researcher and UC San Diego Design Lab designer in residence Chantelle Domingue.
The study was conducted using customer data from Northern Pacific Power Systems, a regional solar installer in Northern California. Researchers analyzed four different electrification scenarios for 60 average-sized homes in Sonoma County.
“There were several companies and manual steps involved to make this research possible. The importance of collaboration and access to data cannot be overstated,” Domingue added.
In response to the study’s findings, Northern Pacific today launched the Energy Independence for All campaign to help homeowners in Sonoma, Napa, and Marin Counties defect from utility, Pacific Gas and Electric Company. Northern Pacific is using the research to strategically move beyond solar and battery storage installation and become a comprehensive electrification partner. As the first installer in California to undertake such an initiative, Northern Pacific is drawing national attention from industry peers eager to learn from its strategies.
“The industry has long believed that fundamentally, looking at the cost of solar compared to grid power, powering home electrification with onsite solar and battery storage should make the most sense for homeowners, but we didn’t have the framework to prove it. Now we do,” said Andrew Krause, CEO at Northern Pacific Power Systems and President of Agile Electrification. “This report shows that solar-led electrification is a win for both homeowners and the solar industry. We’re proud to put this research into practice and adopt ‘solar-led’ electrification as a methodology. Through Agile Electrification, we can share real world learnings with other installers looking to help homeowners electrify with solar.”
As part of the campaign, Northern Pacific is partnering with technology providers that simplify home electrification. One such partner, Balto Energy, generates an adaptive digital twin of the customer’s home to simulate thousands of home electrification options. The platform compares results and recommends a personalized solar and battery configuration to meet the customer’s future energy needs.
Balto Energy CEO and UC San Diego designer in residence James Quazi said, “The results from the study highlight the industry’s new challenge —there’s an information gap keeping homeowners from doing what’s in their best interest. Homeowners need two things in order to electrify their homes: reliable information and a way to take action on that information. We’re thrilled to partner with Northern Pacific Power to give North Bay homeowners the analysis and confidence needed to move forward with their home electrification projects.”
News item from Agile Electrification
