Why We Still Need To Discuss Grid Defection

RMI defends its research on grid defection, asserting that while full disconnection from the utility may currently only be economical in Hawaii, the declining costs of distributed energy resources (DERs) create a risk of stranded utility assets. RMI critiques a Rochester Institute of Technology (RIT) study for focusing only on present-day costs and a limited set of DER options, arguing that the threat of future defection empowers customers and necessitates reforms in utility business models and retail pricing to achieve an integrated, cost-optimal grid.

• Grid defection is currently only economically viable in Hawaii due to the state having the highest retail electricity rates in the United States.
• RMI contends that focusing solely on present-day costs ignores the risk that future customer investments in solar and storage could strand a significant portion of the approximately $100 billion spent annually on utility capital investments.
• While full grid defection may not be the most common path, 'middle-ground solutions' involving demand flexibility and behind-the-meter battery storage offer better economics for customers, utilities, and the broader grid.
• RMI argues against the assumption that 'using the grid as a battery' via net-metered PV is the most economical long-term choice, as it may necessitate continued investment in expensive, underutilized assets.
• The potential for cost-effective grid defection is significant because it shifts power to customers to influence the pace of decarbonization, resiliency investments, and retail pricing evolution.

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} }