On the back of rapidly decreasing costs for energy storage and solar photovoltaics (PV), consumers wishing to achieve a low-cost and reliable supply of power are considering grid defection—or at least, partial grid-defection—as an increasingly attractive alternative. Julian Jansen, analyst at IHS looks at the economics of grid defection in Europe today and in the future – and how its proliferation could impact the energy industry as a whole.

Remaining on the grid while using solar paired with batteries is likely to become a more economically attractive option for commercial and residential customers in key US markets, a new report from the Rocky Mountain Institute (RMI) claims.

Two recent reports, one from credit rating and investment advisory agency Moody’s, the other from technology and tech market analysts Navigant Research, appear to show divergent views on the potential of distributed energy storage, including residential solar-plus-batteries.

SunPower CEO Tom Werner says that the idea of solar power users combining their systems with battery storage to become fully independent of the grid is “naïve”, echoing the views of one of SolarCity’s founders.

Barclays has voiced the opinion that solar PV-generated energy coupled with storage presents a long term disruptive risk to electric utilities in the US, as it was reported the bank’s investment arm had downgraded the entire electric sector of the US high grade corporate bond market.