Green Living

How and why to add resilience with a residential microgrid

Written by Jamie Gold | Apr 5, 2024 5:00:02 AM

Photo courtesy of Panasonic Eco Systems and Blalock Electric

Many households now rely on electric equipment for better energy efficiency and home tech benefits. This article explores how power outages can affect your daily life and the best backup options to make your home more energy independent. If you're looking for resiliency and peace of mind at home, speak with a Panasonic Authorized Installer about home battery storage

Occupational therapist Sheila Longpré has lived and worked in two hurricane zones, Florida and Texas, and in Michigan, where winter storms can also impact life and safety. With increased reliance on home technology (and that technology being dependent upon electricity), older adults and those with medical conditions are even more vulnerable in power outages.

Citing durable medical equipment, refrigeration and smart home controls for lighting, appliances and other necessities, the new program director at Utah Tech University’s occupational therapy curriculum warned, “This is probably even more problematic now than in previous years.” (There are simply more households using these features.) Longpré cited this modern facet of resilience as an emerging practice area for occupational therapy.

Adults of all ages, health status, and state locations can be impacted by power outages, as became painfully evident in Texas’ 2021 wintry outage that claimed 246 lives across 77 counties. That incident, plus the intensifying tempo of natural disasters, is spurring soaring demand for home microgrids.

Definition

“A microgrid for a single-family home typically includes solar panels, backup battery storage, inverters, and possibly a generator for additional resilience,” explained Troy Dunnington, a smart energy and lighting design consultant in San Diego.

“Solar panels generate electricity from sunlight, which can be used to power the home directly or stored in batteries for use during times when sunlight is not available, such as at night or during cloudy weather. Backup battery storage allows homeowners to store excess energy generated by the solar panels for later use, providing backup power during grid outages or times of high demand.”

Photo courtesy of Panasonic Eco Systems 

Demand

Residential is still a small slice of the $26.9 billion global microgrid market, (a 2022 figure) projected to reach $63.2 billion by 2030, according to MarketDigits, but it’s a growing one.

“Our inquiries for battery back-up have skyrocketed in the last 12 to 18 months. Five years ago, one in 20 customers would ask about this; today it’s closer to one in three,” declared Logan Boesch, a Tampa-based independent solar consultant. Dunnington has also seen demand increase by 25%, he reported.

Aside from a freak occurrence last year, Southern California’s mild climate does not scream out for storm resilience. Demand in his region is being driven by the desire for energy independence and higher peak energy rates, Dunnington noted. “Across the country, homeowners are increasingly interested in microgrids due to a combination of factors that include rising energy costs, concerns about grid reliability, and a growing emphasis on sustainability and environmental responsibility,” he added.

The biggest drivers in Boesch’s Southeastern market are hurricanes and power outages, (which may become more common with rising temperatures straining utilities), but the Tampa consultant also cited unfavorable solar power buyback programs from local utilities. Looking across the country, he predicted,

“As the grid continues to get older and fail more often, we will see utility prices continue to soar. As this happens people will be looking for other alternatives, along with the safety and security of producing your own power.”

Pricing

Microgrids are certainly popular among luxury builders and homeowners, but that popularity is spurring some economies of scale and competition that make them more feasible at more price points.

“We have already seen massive price reductions in the cost of batteries,” Boesch commented. His projects have ranged from $20,000 up to $200,000. Dunnington ranged his systems from $10,000 to $50,000 or higher, depending on whether the home already has solar panels installed.

Government incentives can reduce some costs: “Right now, the federal government has a 30% tax credit available,” Boesch noted, but he and Dunnington both suggest that homeowners check with their utilities for state and local incentives.

Longpré added that there may be financial help available for clients with health issues through government and nonprofit agencies, and shared that their OT can help them find and access these programs.

Upgrades for microgrids include smart home integration, automatic switching between grid-connected and off-grid modes, and remote monitoring capabilities.

Shopping Tips

Can a microgrid work on your property? If you don’t have good sun access, space for solar panels, too much tree coverage or zoning issues, you might be thwarted in adding this capability. Condo owners have additional considerations with homeowner association rules.

Price can be a factor for some households, even with incentives. “Homes with extremely high energy demands may require larger and more expensive microgrid systems to meet their needs effectively,” Dunnington pointed out.

There’s also the newness and nature of this industry. “There are a lot of people that will come running into this to try and make a quick buck,” Boesch cautioned. (That may be especially true after a natural disaster strikes an area.) Look for a licensed provider with a track record and good history, he urged.

When it comes to determining your capacity needs, online sizers aren’t always reliable or up to date, Boesch noted, so it’s best to consult with a pro for your particular needs. At a minimum, he recommends 20 kilowatts minimum if you’re running an air conditioner. Dunnington suggested referring to the number of kilowatt hours you’re currently consuming, (which should be available on your electric bill or through your provider), and sizing your system accordingly.

“Common mistakes that we have seen homeowners make include underestimating their energy needs, failing to properly size the system to meet their requirements, and overlooking important regulatory or permitting requirements,” the San Diego pro added.

Conclusions

“As technology continues to evolve and costs decrease, microgrid solutions are becoming increasingly accessible to a wider range of homeowners, offering both economic and environmental benefits,” Dunnington summarized. He can easily add mental health and resiliency benefits. This is especially important for individuals aging at home, Longpré concluded.

 

This article was written by Jamie Gold from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.