Investment bank Morgan Stanley says the tipping point for going off grid in the US is getting closer – thanks to falling solar costs, Tesla’s big battery bet and rising grid prices. Some utilities may adapt, others will not.
The initial report, published earlier this month, has been followed up by a note from Morgan Stanley highlighting the extent to which investors had been unaware of these mega trends, which threaten massive disruption in the trillion-dollar utility business.
More importantly, the investors were particularly focused on how utilities might respond. Solar, they suggested, should be seen as an opportunity and utilities should look at ways of becoming enablers of these technologies, rather than barriers.
“There may be a “tipping point” that causes customers to seek an off-grid approach,” Morgan Stanley writes. “The more customers move to solar, the remaining utility customer bill will rise, creating even further “headroom” for Tesla’s off-grid approach.”