Mary Powell, the CEO of Sunrun, believes that the combination of residential solar panels and battery storage is a quick and efficient way to stabilize the U.S. power grid, which is struggling to keep up with increasing electricity demand. Sunrun, the largest U.S. solar installer, recently installed solar and battery systems in a million U.S. homes, resulting in seven gigawatts of power-generating capacity and two gigawatt hours of energy storage.
Powell, who is recognized on Forbes’ Sustainability Leaders list, aims to expand the number of homes with small-scale virtual power plants. Sunrun typically installs 7.5 kilowatts of solar panels and batteries with at least 13-kilowatt hours of storage in residential projects. While the cost of such systems can exceed $20,000, federal tax credits and state rebates can help offset the cost. Powell emphasizes the importance of affordability in making residential solar power accessible to more consumers.
The residential solar power industry has seen a significant increase in battery usage in recent years, with 54% of Sunrun’s customers using batteries with their solar panels. The U.S. is expected to experience a steady rise in electric power demand, but the grid infrastructure is not being upgraded fast enough to keep pace. Powell predicts that this could lead to rate hikes for consumers, making it crucial to accelerate the adoption of customer-led solar and energy storage solutions.
Despite the potential benefits of distributed power generation and storage, the process of getting new systems permitted remains complex and cumbersome in the U.S. Many utilities do not incentivize residential solar installations, and obtaining approval from multiple entities can be a challenge. In places like California, where there is a surplus of solar generation but inadequate battery storage, new residential solar projects have seen a decline in incentives and installations.
Sunrun’s revenue was impacted by changes in net metering rules in California, leading to a drop in new residential installations in the state. However, the company remains optimistic about the growth potential of solar and battery projects, especially with federal support for low-income residential and community installations included in the Inflation Reduction Act. Powell stresses the importance of standardizing guidelines at the state and utility levels to facilitate the adoption of solar and energy storage systems.
Overall, Powell believes that the combination of solar panels and batteries can help ease strain on the electric grid and provide a more stable, affordable, and resilient way for consumers to power their homes. With the potential to scale quickly and benefit both consumers and utilities, distributed power generation and storage could play a significant role in shaping the future of energy in the U.S.
