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Northern Pacific Power Systems
Study Shows Bay Area Homeowners Can Save by Leaving PG&E Grid
A new study by 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.
Researchers analyzed four different electrification scenarios for 60 average-sized homes in the Bay Area.