Why We Still Need To Discuss Grid Defection

This statement by the Rocky Mountain Institute (RMI) defends its 2014 research on 'grid defection'—the economic viability of customers disconnecting from utilities in favor of on-site solar and battery systems—against interpretations of a subsequent study by the Rochester Institute of Technology (RIT). RMI argues that while full grid defection may currently only be economical in Hawaii, the downward trajectory of distributed energy resource (DER) costs creates a systemic risk of stranded utility assets and empowers customers to influence the pace of decarbonization and grid investment.

• RMI and a study by Eric Hittinger and Jawad Siddiqui for the Rochester Institute of Technology (RIT) both conclude that grid defection is currently only economically viable in Hawaii, where retail electricity rates are the highest in the United States.
• RMI contends that the RIT study is limited because it focuses on present-day costs and ignores future cost trajectories from 2014–2050. RMI warns that failing to account for future cost declines in solar and storage could lead to the stranding of a significant portion of the approximately $100 billion in annual utility capital investment.
• RMI argues that 'middle-ground' solutions—such as demand flexibility and behind-the-meter battery energy storage—offer better economics for customers, utilities, and the larger grid than full grid defection.
• RMI disputes the notion that 'using the grid as a battery' (net-metered PV without other DERs) is the most economical long-term choice, stating it may require continued investment in expensive, lightly utilized assets that are difficult for utilities to justify.
• RMI suggests that utilities do not necessarily need to own DERs to benefit from them; instead, they can achieve benefits by providing correct price signals to consumers and aggregators, a strategy currently being explored in New York and California.

APA

RMI (2017). Why We Still Need To Discuss Grid Defection. https://rmi.org/resources/still-need-discuss-grid-defection/

Chicago

RMI. Why We Still Need To Discuss Grid Defection. 2017. https://rmi.org/resources/still-need-discuss-grid-defection/.

Wikipedia

{{cite press release |author=RMI |title=Why We Still Need To Discuss Grid Defection |date=2 March 2017 |url=https://rmi.org/resources/still-need-discuss-grid-defection/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{rmi2017why, author = {{RMI}}, title = {{Why We Still Need To Discuss Grid Defection}}, publisher = {RMI}, year = {2017}, month = mar, url = {https://rmi.org/resources/still-need-discuss-grid-defection/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }