Guest Blog: Why the future of energy looks bright for individual consumers.
By Kacie Peters
In the home of 2030, consumers will hold more power than ever to manage their own energy.
We can probably say with some certainty that the home of 2030 will not have flying cars. However, our cars will still have an important role to play. They may, in fact, power your neighbor’s toaster. We also may not have meals in pill form, as much as the latest dystopian science fiction show wants us to think that’s possible. However, our kitchens will go beyond today’s “smart” appliances by communicating with the electricity grid and other appliances on when to respond to supply and demand. The best part is that it will all be automated.
In 2030, electricity will be cleaner, cheaper, and more reliable than ever before. There are a lot of reasons to be optimistic about our future energy grid and the power of the consumer in the future, and that’s because there are so many inefficiencies today that are ripe to be solved.
The grid today: an inefficient beast
The future of energy essentially results from overcoming the problems of today’s power grid. The vast majority of power today is generated by centralized resources owned by large utility companies. These centralized resources — such as a hydroelectric dam, coal- or gas-fired power plant, or a large-scale wind or solar farm — export their electricity at high voltage through transmission lines. Then, the electricity is “stepped-down” to the distribution network that powers homes and businesses across the country.
Consumers face a variety of frustrations because the transmission and distribution of electricity is (mostly) a one-way street. Firstly, consumers are “price takers” in economic-speak as they simply must pay the fees and prices for electricity with little impunity. We do have boards of public utilities and consumer protection organizations to act on our behalf, but they are not well-positioned to change the inherent structure of the system.
Moreover, consumers are limited by choice. Some can choose their energy supply or “retail electric provider,” while others in “regulated” utility states have little to no choice. While monopolistic power might be okay to some extent to manage grid infrastructure as a public good, the overall system is slow to provide new services.
Community solar is a perfect example of one of these new services. Since the first community solar legislation was enacted in Colorado over a decade ago, just over 20 states now have a formal community solar policy. It has been a slow, gradual process to provide a new renewable energy option for households and businesses that are unable to complete an on-site installation.
Finally, our grid today has another major issue: it’s outdated and ill-prepared to deal with climate change. Recent wildfires in California have been traced to outdated utility assets and power lines. The problem is that upgrading existing grid infrastructure costs a lot of money. Plus, it will become harder to maintain over time as we face more extreme weather events like Texas’ extreme cold in 2021, the Polar Vortex in 2013 and 2014, and the annual California wildfires. Let’s not forget the impact of hurricanes and heat waves, too.
Today’s revolution: decentralized power
The original power supply thesis is currently being challenged. Does it still make sense to generate power from a centralized source, and then transmit that power many miles to a consumer far away? The reality is that this framework is becoming a thing of the past.
The solar industry, which has grown from its infancy serving early adopters and niche programs, is now a full-fledged industry that is cost-competitive with any other source of power. Solar was the catalyst for much of what we see today. It sparked the rise of localized power on rooftops, a framework for bi-directional power flow called net metering, and an interest in consumer energy empowerment. The industry also now employs over 250,000 workers nationwide.
These trends are happening at the right time. States, countries, and corporate entities are all pledging ambitious renewable energy and carbon-free targets (many by 2030). In addition, innovation has brought growth in energy storage, electric vehicles, and other exciting new technologies. Like for solar energy a decade ago and before, early adopters are driving these industries forward as scale increases and cost decreases. By 2030, we will all enjoy a future with more choice, or rather power, as energy consumers.
Energy in 2030: an empowered consumer
While utilities will continue to fight to stay on their perch, the current trend will inevitably continue. Do you want to use 100% renewable energy? Do you want backup power? The good news is that you can now have it all, and a framework is available for you to make it happen! Moreover, competition will drive even more choice. This all begins with more transparency for every consumer. How much energy am I using? When am I using it? What are the cost consequences of using this power?
Innovative companies like SPAN are offering smart circuit breaker panels that actively monitor every circuit in the home. By 2030, we will have dashboards that consolidate and track every electronic device in our lives. Think of how Mint allows users to manage and monitor financial accounts, set budgets, and get bill reminders. In addition, we will see our carbon impact and learn how to reduce it from such software. Simply put, transparency and education lead to empowerment, which leads to further action.
At the grid level, we will soon enjoy the reliability and cost benefits of a more distributed electricity grid. This will be possible through true bi-directional power flows and real-time market-based pricing. While net metering programs for solar have allowed both the import and export of electricity, it hasn’t really happened in a “smart” way. This all changes through the adoption of energy storage technology to allow consumers the opportunity to play arbitrage with every kilowatt-hour of electricity. When prices are high, sell. When prices are low, buy. It can be that simple.
Consumers will also have more resources to enter into this market. Solar energy generation is already being coupled with battery energy storage. By 2030, many homes will have energy storage in the form of an electric vehicle battery pack. For example, the Ford F-150 Lightning pickup truck has “vehicle-to-grid” technology that allows it to power your home, and potentially play in future power markets.
Pilot programs that allow market participation for consumers are just beginning. Hawaiian Electric offers cash incentives to households that install battery energy storage. In return, consumers make their energy storage devices available to the grid to alleviate grid congestion during peak periods.
Residential customers in some utility territories — such as Pacific Gas & Electric — can now participate in time-of-use rates. Previously reserved for commercial customers, these rate schedules price electricity according to demand. This incentivizes consumers to use electricity when it is cheapest and creates the foundation for energy arbitrage.
The result: a better system for a cooler planet
We should not forget the core reason why all of this is happening: climate change. All of these changes are good for consumers, but they are also good for the planet. The result will be a grid that is cleaner and more distributed than before.
After a year of immense supply chain and policy challenges across the energy sector, things are now looking quite positive with the announcement of the Inflation Reduction Act of 2022. Solar energy is expanding, electric vehicle reservations far outpace production, and innovative new technologies are being announced every day. Here’s to a better energy future for us humans as well as the planet.
About Kacie Peters
For over a decade, Kacie Peters has been an innovator, communicator, and mentor for the distributed solar and storage industry. She has pioneered new markets and sales strategies for organizations including SunEdison, Alta Energy, and board positions on COSSA and ISEA. Currently, Kacie serves as the Director of Industry Relationships for Pivot Energy where she develops marketing strategies for project M&A, codevelopment, and SunCentral, Pivot’s proprietary community solar servicing tool.
Kacie has been recognized for her work by the Denver Business Journal and the Environmental Entrepreneurs. Her thought leadership has been featured in Solar Power World, Energy News Network, and in whitepapers for SEIA and Clean Energy for Biden.
