pwr_april-2024 - 37

ELECTRIFICATION
lowering demand at peak times reduces
the operating costs of grid resources,
thus lowering retail electricity rates.
Rather than requiring localities to spend
infrastructure funds on new substations
and transformers to adjust to increased
demand, operators that manage solarplus-storage
system fleets can provide
those resources.
Although electrification technology is
well-established, the next step is to advance
regulation and policy to keep up
the momentum. According to the U.S.
Energy Information Administration, only
26% of U.S. households used electricity
as their only source of energy. Additionally,
fewer than 5% of homes in the U.S.
have solar installed, with the highest
share of installations in regions with favorable
incentives and policies.
States have varying priorities. For
example, just this year New York state
passed the All-Electric Buildings Act, requiring
by 2026 that all buildings under
seven stories be fully electric. By contrast,
in California only 5% of new-builds
are built with heat pumps, and 95% still
rely on gas heating.
Meanwhile, residential solar policy
continues to evolve. Among recent
developments is net energy metering
(NEM) 3.0 in California, which reduced
compensation rates for homeowners
delivering excess electricity back to the
grid. The residential solar-plus-storage
workforce is also impacted as reduced
incentives lead to fewer installations. To
make full electrification a reality, not only
must policy favor the widespread implementation
of electric technologies, but
the implementation of said technologies
must be more broadly available.
Accessibility
A key aspect often overlooked in the
conversation around electrification is accessibility.
If the goal is to maximize the
amount of DERs via solar-plus-storage
systems installed, we need to look at every
level of adoption.
The traditional model of consumer
home solar-plus-storage is often costprohibitive
to homeowners of lowto-moderate
incomes (LMI).
While
homeowners can access many online
resources that estimate the cost of adding
solar to their home, the cost can be
upward of $20,000 (even with federal
tax credits applied). To put this into perspective,
the cost of installing solar can
be equivalent to most of a full year's salary
for an LMI homeowner. LMI homeowners
are thus often shut out from the
benefits of a home solar-plus-storage
system, which include reduced energy
bills; reliable backup power; financial
incentives via tax credits; and energy
security in the face of extreme weather
conditions, public safety power shutoffs,
or grid failures.
So how do we achieve widespread
adoption? We need to break down the
systemic and financial barriers LMI
homeowners face. According to the
U.S. Department of Energy, LMI homeowners
face among the highest energy
burdens in the country due to utility rate
increases disproportionate to income,
reliance on high-cost fuels like propane,
and energy-inefficient housing. As a result,
44% of the total households in
the U.S. that are defined as low-income
struggle with energy costs that are three
times higher than other households.
Additionally, many LMI homeowners,
especially in rural areas, do not have
the same opportunities to access clean
technology resources, due to financial,
social, or geographical limitations. Lack
of qualifying credit or income prevents
LMI homeowners from participating in
traditional methods of obtaining solarplus-storage,
as they are unable to meet
the financial requirements necessary
for loans and installation. Utility or tax
incentives alone are not enough to offset
the investment.
Delivering electrification systems to
LMI homeowners is a proven method
for enabling energy resilience, supporting
decarbonization, and reducing financial
burdens in homes and communities.
Often termed " Home Power Programs, "
innovative business models from technology
providers who partner with community
organizations, cities, towns, and
municipalities to provide low-to-no-cost
electrification resources, like solar-plusstorage,
are becoming more popular.
Through power purchase agreements
(PPAs) the partnering organization, city,
or municipality is able to provide LMI
homeowners with a complete solution at
no upfront cost for the PPA's contracted
amount of time. Bypassing the traditional
consumer loan model for traditional
solar-plus-storage, these city-vetted
contracts are accessible to homeowners
regardless of credit history, financial
background, or income.
With financial barriers removed, LMI
homeowners are able to reap the benefits
of clean energy systems. By electrifying
their homes, they can save a
significant percentage on their utility
bills, utilize stored backup power when
widespread outages or extreme weather
hit, and reduce reliance on the unreliable
grid system to keep the lights on.
Home Power Programs also benefit
entire LMI communities by improving
energy reliability and quality of life with
reduced greenhouse gas emissions,
while supporting the local economy with
job creation. Implementing programs
and systems that deliver the benefits of
clean energy to individual households
and communities most in need builds
essential energy resilience for the betterment
of our people and planet.
Total electrification isn't a " what if? " -
2. Workers install a PowerPod 2 system in a home's garage. Courtesy: Electriq Power
April 2024 | POWER
www.powermag.com
it's a " how soon? " Advances in technology
are helping drive the electrification
movement, but policy, regulation, and
innovative business models will accelerate
success. When accessibility is factored
into the equation, the opportunity
for both widespread solar-plus-storage
adoption and access to the benefits of
electrification are unlocked. Electrifying
homes beyond heat pumps or electric
stoves will not only support grid function
and capacity, but will enable DER networks
to unlock resilience and reliability
on both sides of the meter. ■
-Frank Magnotti is CEO of
Electriq Power.
37
http://www.powermag.com
pwr_april-2024

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