Living " Off Grid " !

The price of electricity is ever rising - and the price of both solar and batteries continues a steady decline.  We are fast reaching the stage when living " off grid " is becoming a viable option, but the repercussions will be extreme industry wide if this trend takes hold.

The economics of the electricity supply are very similar to that of the old landline telephone system.  The installation and maintenance of poles and wires were required to connect a house to electricity, just as cables had to be laid and wiring connected to bring phone services to individual houses.  The costs were evenly distributed when almost all homes had both an electricity and a landline phone connection.

Lithium-ion battery costs have plunged about a fifth in the past year and one Sydney resident coupled them to their five kilowatt capacity rooftop solar array to produce about 12-13 KW hours of electricity a day, allowing them to dodge the 60 c KW hour peak surcharge between 2 PM and 10 PM.   Their " smart meters " allow them to tap the grid to top up their $ 8,000 battery system when power is at its cheapest.   If they add just a little more battery storage, they will be able to disconnect from the grid.

The economic costs for the owners of the grid are obvious.   Just like the phone service suppliers who found their product replaced by Smartphones, the telephone grid must be maintained to service the landline customers who remain, but the cost is shared amongst an ever decreasing pool.   The more that access price increases, the quicker people dump landline and replace it with a smartphone.

This Sydney couple has peace of mind because they are still connected to the grid.   In the event of a run of bleak days causing their solar to produce insufficient power the gap will be filled by the grid, but the cost of petrol driven electricity generators has also dropped to a few hundred dollars and such a reserve is now a viable alternative option.

In particular, a solar/battery option would have great appeal for farmers.  They usually have ample roof space available on farm buildings and when the distance between the farmhouse and the road requires new poles and wires this is at the customers expense. Many already have generator backup because grid repairs in the country after a storm are often protracted.

Perhaps the state governments were far sighted.   Back when poles and wires were regarded as a safe investment potential they put them to lease and they were snapped up by superannuation funds and similar bodies looking for both safety and a good, long term dividend return.   Going off grid will be unlikely to ever be in the reach of all home owners, hence that mix of on grid and off grid homes will increase the costs of maintaining the system in its entirety - and the more the cost rises the fewer who will remain.

Such is the quandary that faces features once deemed " essentials " in this twenty-first century !