Some people and companies seeking to use solar panels, batteries, and electric cars find that they cannot because utility equipment needs to be upgraded.

Give any friend a story

As a subscriber, you have 10 gifts to send every month. Anyone can read what you share.

Seven months after workers installed solar panels on the roof of Garcia's home near Stanford University, the system was nothing more than a roof decoration. Problem: The equipment of the local utility is overloaded, and the electricity generated by the battery panels has nowhere to go.

"We wasted approximately $30,000 on unusable systems," said Theresa Garcia. "It's really frustrating."

President Biden is pushing lawmakers and regulators to get rid of the use of fossil fuels in the United States and respond to the effects of climate change. But his ambitious goals may be overturned by aging transformers and outdated wires, which makes it difficult for homeowners, local governments, and businesses to use solar panels, batteries, electric cars, heat pumps, and other things that help reduce greenhouse gas emissions. equipment.

Most of the equipment on the power grid was built decades ago and needs to be upgraded. It is designed for a world where electricity flows unidirectionally-from the grid to people. Now, households and businesses are increasingly supplying power to the grid through rooftop solar panels.

These issues become more urgent, because the fastest way to reduce greenhouse gas emissions is to transfer the machinery, cars, and heating equipment that currently use oil and natural gas to solar, wind, nuclear, and other zero-emission energy power generation. However, energy experts say that the power grid is far from having enough capacity to power everything that helps to deal with the effects of climate change.

"This is a perfect storm in terms of meeting the needs we will have," said Michael Johnston, Executive Director of Code and Standards for the National Electrical Contractors Association. "It's not a small problem."

The power grid is also under pressure from climate change itself. California implemented rotating power outages during the heat wave last year. In February, the Texas power grid collapsed during a winter storm, killing more than 200 people. Then in August, Hurricane Ida destroyed electrical wires in Louisiana, shutting out millions of people for several days.

More than a year ago, Ms. Garcia and her husband Quinn bought their house in Portola Valley. They invested in solar energy because Ms. Garcia, a 37-year-old biotechnology lawyer, and her venture capitalist husband wanted to do their part in combating climate change.

The Garcias are not trailblazers. According to the California Solar Energy and Energy Storage Association, about one in ten utility customers in the state own solar energy.

Therefore, Garcias was surprised when their utility company Pacific Gas & Electric did not allow them to make full use of these panels.

The problem is that on sunny days, rooftop solar panels can generate more electricity than the communities where they are installed. This overloads power transformers, which helps regulate and direct the flow of electricity in the community, forcing them to shut down or explode. This type of problem can be avoided by installing a new transformer with a larger capacity.

Barry Cinnamon, CEO of Cinnamon Energy Systems, the company that installs panels in Garcia's home, said such problems are too common. "My experience and understanding of how utility companies operate is that they just wait until the community is overloaded and then the transformer explodes," Mr. Cinnamon said.

PG&E apologized for the delay in upgrading the transformer outside Garcia’s home, and pointed out that if workers are flooded by the project, it may take up to six months to complete.

During a heat wave in August 2020, an aging transformer in a substation in downtown San Jose, about 25 miles from Garcia's family, exploded. This caused power outages in the houses of thousands of people, some for several days.

The mayor of the city, Sam Liccardo, expressed disappointment at PG&E, saying that the company’s outdated equipment hindered San Jose’s plans to increase the use of solar panels, electric cars and other new equipment. In order to achieve its climate goals, the city has banned the use of natural gas in new buildings, and the country's largest local government is doing so.

"This is a failed infrastructure," said Mr. Liccardo, a Democrat. "We are ambitious. The question is whether the grid will be ready when we get there."

Mark Esguerra, senior director of power asset strategy at PG&E, said the company plans to upgrade more equipment. Since the failure in San Jose last year, the company has replaced 400 transformers in the city and surrounding areas, of which Santa Clara County has a total of 62,000 transformers. The company added that it supports nearly 600,000 residential customers and 360,000 customer-owned electric vehicles using solar panels.

"We know that our grid will be different in a few years," Mr. Esgra said.

The big challenge for policymakers and the utility industry is figuring out the speed at which to invest in the grid while keeping energy affordable.

Ben Hertz-Shargel, global head of Grid Edge, a division of the research and consulting firm Wood Mackenzie, said that upgrading the nation's power distribution network to achieve the country's clean energy goals would cost hundreds of billions of dollars. This does not include expenditures for long-distance transmission lines and power generation equipment such as solar and wind farms.

Mr. Hertz-Shargel has first-hand experience of the shortcomings of the power grid. When he recently charged his Tesla at his Long Island home, the electrical equipment that connects the utility's power line to his home became so hot that it melted.

"I am the only electric car in my neighbourhood, and even moderate use is enough to overwhelm the secondary side of my home grid," he said. "It just shows how many weak links there are in the utility distribution system."

How much utility companies spend on their equipment is determined in a complex process involving state regulatory agencies, and they must approve increases in electricity bills to pay for upgrades.

Abigail Anthony, the Rhode Island utility regulator, said that state officials did not want to raise interest rates too much because it would harm consumers and could weaken public support for clean energy. He also served as the national regulator of public utilities. Chairperson of the committee of the business association that studies these issues. Members.

“Not only do cars and heating systems need to be affordable,” Ms. Anthony said, “but fuel and electricity also need to be cheap, especially when compared to oil, gasoline and natural gas.”

Those who promote increased investment say that by saving people monthly bills and preventing the worst effects of climate change, expenditures will be rewarded.

Consider the following example: If all 330,000 households in San Jose abandon the use of gasoline and natural gas and switch to electric cars, heat pumps, electric water heaters and stoves, according to statistics, the city's electricity consumption will be three times what it is now. Rewiring America, a non-profit organization that advocates for grid upgrades and climate change policies.

But the organization believes that San Jose residents and businesses don’t necessarily need to triple or even double their spending on electricity. That's because people can generate electricity through rooftop solar panels and store this energy in household batteries. Sam Calisch, head of research at Rewiring America, said they can install smart thermostats and appliances for use when electricity costs are low, such as at night.

Emily Fisher, senior vice president of clean energy at the Edison Electric Institute, a trading group in the utility industry, gave another example. Mr. Biden hopes that by 2030, electric vehicles will account for half of the country's new car sales. If all these cars are plugged in during the day when energy usage is high, utility companies will have to spend a lot of money on upgrades. However, if regulators allow more utilities to provide lower electricity prices at night, people will charge their cars when there is enough idle capacity.

Some companies are already looking for ways to reduce their dependence on the grid when demand is high. Electrify America, a subsidiary of Volkswagen that operates an electric vehicle charging network, has installed large batteries in some charging stations to avoid paying utility companies to charge companies that consume too much electricity.

Robert Barrosa, senior director of sales and marketing at Electrify America, said that ultimately the company can help utilities by harvesting power when there is too much power and providing power when it is not enough.

According to Data from Rewiring America, ultimately, the electrification of cars, heaters, stoves, and other equipment that currently use fossil fuels can save ordinary households between US$1,050 and US$2,585 per year. These products are more energy efficient, and the cost of electricity is often lower than comparable quantities of gasoline, heating oil and natural gas. The maintenance costs of electric vehicles and appliances are also lower.

"If done well, the funds can be further used to build a more reliable network," Mr. Kalish said, "especially in the context of increasing pressure from climate change."