By Glenn Jakins, CEO of Humless
Solar energy as an industry has been around longer than most people realize. Believe it or not, the first solar panels were installed in a building in 1884. Years of research continued and the entire solar industry changed in the 1950s when practical solar cells were invented to power everyday devices.
Recently, the demand for solar energy has increased significantly since 2010, when the cost of installing solar panels in residential and commercial buildings started to decrease making them more affordable for a wide range of consumers. Thanks to government subsidy programs, new research and development, and cultural pressures, solar energy has become mainstream in the 2010s.
Even though growth has continued, there are still hurdles to becoming as mainstream as many lawyers desire. The market is ripe for more disruption. Consumers want solar power. But to make solar energy a real mass market, we need to upgrade our infrastructure.
Switch to a "me first" model.
Today, most residential consumers with rooftop solar have AC-coupled devices that don't directly supply electricity to their homes, but feed it to the grid first, and then the homes depend on that same grid for light and heat. , air conditioners, WiFi, computers and all other devices that need electricity that we have collected as a society.
That means solar homes suffer like no one else when grid disruptions hit — storms, power lines, transmission outages, and increasingly planned outages as supply exceeds demand. That surprised some customers who thought they were protected after switching to solar power.
Expect that to change over the next few years. Consumers want solar systems with battery storage that allow them to be more self-sufficient without disconnecting them from the benefits of the grid. DC-coupled power systems can use solar power generated by solar panels directly in household appliances and systems. With the battery installed, excess energy can be stored for night use.
DC-coupled solar panels have long been used for microgrids and small installations, but have not always been suitable for powering large homes or commercial buildings. Combined AC systems can handle large loads and start inductive loads, so it makes sense to use them in many situations. Each connection type serves a specific purpose, so the two options are always sold as separate systems.
The future of solar energy, which allows consumers to power their homes first, store energy and then feed it back to the grid, is moving from a pure AC model to a simultaneous AC/DC combined system. This technology has been available for several years, but consumers are ready for this line to become the norm, not the exception.
Impact on the industry
What does this change mean for the company?
New pricing structures and supply chain adjustments need to be addressed for solar and battery storage providers. AC coupled systems are rarely sold with batteries, while the main appeal of AC/DC co-installation is the storage capacity it offers. DC systems are often cheaper than AC systems because they only require an inverter and medium voltage switchgear. Battery storage is expensive, so this type of installation usually costs more up front, but the cost savings are significant over the life of the system. The increasing use of batteries means that we have to start looking for bigger sources of lithium.
However, the biggest distraction for the industry will likely be utilities. Essentially, the net metering model allows customers to install solar panels with an inverter that sends electricity back to the utility to credit the homeowner's electricity bill. Solar power is "sold" to utilities for the same price customers pay for conventional power sources.
In recent years, utilities in states such as California and Florida have begun changing net meter policies, whereby most solar customers can generate enough electricity to reduce their monthly electric bill to zero. Utilities get greedy, requiring adjustments to solar rates or charging solar customers a monthly fee to connect to the grid, even if they generate more electricity than they use. Some energy suppliers want to remove net metering altogether.
As more solar customers turn to devices that allow them to power their own homes without utilities involved, it's time to rethink the supply structure and decide where we want to go as a country. Are we going to continue to incentivize to shift our energy to clean solar sources? Or will we succumb to the demands of energy suppliers to maintain their status as power centers?
After that?
2020 and 2021 saw record numbers of solar installations and demand doesn't seem to be slowing down. Switching to a synchronous AC/DC model saves consumers money and reduces their dependence on an increasingly unreliable power grid. Pay attention to these advantages to attract more customers to the solar industry.
Even in the event of a recession, don't expect solar sales to slow. Instead, look for savvy consumers who understand they can save money by using the energy generated by solar panels instead of feeding it to the grid. We need to provide them with options that allow them to do this as efficiently as possible, especially at sunset.
Those of us investing in the solar market need to adjust. There is a need to focus more on efficient energy storage and end user convenience. We need to engage in political conversations when making decisions that will affect the future of our energy network, the viability of all solar energy, and the future of our planet.
Glenn Jakins is the CEO of Hamless, a businessman and entrepreneur. Originally from South Africa, Glenn came to the United States in the 1990s seeking refuge from the social and political upheavals of the time. An entrepreneur at heart, Glenn Jenkins has built several companies. Some ideas are doomed to failure, while others meet only moderate success. Jakin's luck fluctuated like a yo-yo. After his camping experience was ruined by a noisy gas generator, he traveled the world in search of the perfect battery technology (lightweight and long lasting) and founded Humless. Humless and Glen are now on a mission to develop better off-grid technology and energy efficient systems while helping those who want more network freedom.
