A new study suggests that residential renewable power generation and storage will begin to become profitable by the year 2030 – a move which could be a “game-changer” for the energy and utilities sector in years to come.
Using a new framework known as “firm power parity,” researchers from the Centre for Climate Finance and Investment at Imperial College London claim to have been able to forecast new milestones for on-site renewables.
In a new report, the Centre argues that residential renewable power generation and storage will become profitable for City of London households within approximately 13 years’ time.
It argues that consumers will begin a ‘gradual withdrawal’ from the power grid after 2030, which will have significant implications for British utility firms and the wider energy sector as we know it.
The report suggests that the rise of cheaper battery storage will be the key driver behind “a messy transition” in years to come.
Charles Donovan, Director of the Centre for Climate Finance, explains: “The UK Government has a big problem on its hands: solar and storage technologies are advancing rapidly and will bleed revenues from the utilities sector, yet we need a financially healthy industry to enable large-scale investments in smarter, more flexible electric power networks.
“The transition ahead is going to be messy. For example, the expensive baseload power to be generated by Hinkley Point C may not even be needed if consumers make the profitable switch to onsite solar and storage indicated by our model.
“The results of our research are exciting as they show we will soon be entering a period where reliable and profitable solar power production by residential energy consumers becomes a reality in relatively cloudy places like London.”
The Centre for Climate Finance and Investment’s research can be accessed on its website here.