At the end of 2022, The North American Electric Reliability Corporation (NERC) issued a stark warning: the U.S. electric grid faces a growing risk of power shortages, particularly in the Midwest. The Midcontinent Independent System Operator (MISO), which manages the grid in several states across the region, expected to see a 1,300 MW shortfall in the summer of 2023. Fortunately, the power grid did manage to cope with the increased demand, thanks in part to the integration of new renewable energy sources and favorable weather conditions. However, this should serve as a continued warning—energy demand is rising while coal, nuclear, and natural gas plants are retiring faster than new resources can be brought online.
MISO’s approval of a $21 billion investment in high-voltage transmission projects aims to bolster grid reliability and expand capacity. While this is a step in the right direction, these projects will take years to complete, and the grid remains vulnerable to shortages, particularly during peak demand periods or extreme weather events.
What does this mean for homeowners with solar panels?
For current solar owners, grid instability highlights the importance and benefits of having solar energy at home. A solar system paired with battery storage allows homeowners to store excess energy generated during the day and use it during outages or high-demand periods. This capability is especially critical in regions like the Midwest, where grid reliability has been flagged as a growing concern.
If your system is grid-tied without battery storage, you can still benefit from generating your own energy, reducing dependence on the grid. Net metering programs allow you to earn credits for any surplus energy your system sends back to the grid, effectively lowering your utility bills. However, keep in mind that if the grid goes down, most grid-tied systems will automatically shut off for safety reasons unless you have battery backup.
For homeowners considering solar, now is the time to explore options that include energy storage. As grid reliability remains uncertain, investing in solar panels and battery storage not only makes financial sense but also provides peace of mind. Being able to rely on your own energy production during outages is a powerful tool in navigating the challenges of an evolving energy landscape.
Impacts on the solar industry
The growing focus on grid resilience opens opportunities for the solar industry to lead the way in providing decentralized, reliable energy solutions. Solar companies like us are uniquely positioned to offer systems that address these challenges. By educating our customers about the benefits of solar and battery storage, we can help build a more sustainable and resilient energy future.
Moreover, the push for infrastructure improvements, like MISO’s transmission projects, can also benefit the solar industry in the long run. Better grid infrastructure means improved interconnection efficiency, making it easier for utility-scale solar projects to come online and for homeowners to connect their systems to the grid.
Solar as a solution
The challenges facing the grid highlight a broader need for energy independence and resilience. Whether you already own solar panels or are considering making the switch, investing in solar energy today means you’re not just contributing to a cleaner planet—you’re also preparing for a future where reliability and sustainability are paramount. As a solar provider, we’re here to guide you through your options, from grid-tied systems to advanced setups with battery storage. Together, we can ensure you’re ready for whatever the energy landscape brings.
