Ten Reasons Why Small-Scale Non-Utility Solar Is Very Important

Ten Reasons Why Small-Scale Non-Utility Solar Is Very Important

As the United States accelerates its transition toward renewable energy, a growing debate is unfolding over the role of distributed solar power—especially systems installed behind the meter. In a recent study, Stanford University professor Mark Jacobson makes a compelling case for supporting behind-the-meter (BTM) solar as a critical piece of the nation’s clean energy future.

Unlike large utility-scale solar farms, BTM systems are typically installed on rooftops, parking lots, or community spaces. These systems are directly connected to the buildings they power, reducing reliance on the grid and often feeding excess energy back into local infrastructure.

While some utilities and policymakers have criticized BTM solar for allegedly driving up grid costs, Jacobson’s research highlights a broader picture—one that includes economic, environmental, and energy security advantages.

1. Enhanced Grid Resilience and Reliability
 

Small-scale solar systems significantly improve grid resilience by decentralizing power generation. When distributed across numerous locations, these systems reduce the impact of single-point failures that often affect large-scale power plants. During natural disasters or grid outages, BTM solar installations can continue providing electricity to critical facilities like hospitals, emergency shelters, and residential homes, ensuring essential services remain operational.

2. Reduced Transmission Losses and Infrastructure Costs
 

By generating electricity close to where it's consumed, behind-the-meter solar systems minimize transmission distances. This proximity substantially reduces energy losses that typically occur during long-distance power transmission. Additionally, widespread adoption of distributed solar can defer or eliminate the need for costly grid infrastructure upgrades, ultimately saving utilities and ratepayers significant expenses.

3. Lower Electricity Costs for Consumers
 

BTM solar provides direct financial benefits to consumers through reduced electricity bills. By generating their own power, homeowners and businesses can significantly lower their dependence on utility-provided electricity. Many systems also allow for net metering, enabling consumers to receive credits for excess energy fed back into the grid, further enhancing the economic viability of solar investments.

4. Job Creation and Local Economic Development
 

The distributed solar industry has become a significant source of employment opportunities across the United States. From installation and maintenance to manufacturing and sales, these jobs are typically local and cannot be outsourced. This stimulates regional economies and supports small businesses, creating a ripple effect that benefits entire communities.

5. Environmental Benefits and Reduced Carbon Footprint
 

Distributed solar systems generate clean, renewable energy without emitting greenhouse gases or other pollutants. By displacing electricity from fossil fuel sources, each small-scale installation contributes to improved air quality and reduced carbon emissions. When deployed at scale, these systems can significantly advance local and national climate goals.

6. Energy Independence and Security
 

Widespread adoption of behind-the-meter solar enhances national energy security by diversifying the nation's energy portfolio and reducing dependence on imported fuels. This distributed approach also makes the energy system less vulnerable to cyber attacks, physical threats, and price volatility in global energy markets.

7. Optimal Land Use and Space Utilization
 

Unlike utility-scale solar farms that require large land areas, distributed solar makes use of existing structures and spaces. Rooftops, parking lot canopies, and brownfield sites can all host solar installations without competing with agricultural land or natural habitats. This efficient space utilization minimizes environmental impact while maximizing energy production potential.

8. Democratic Energy Access and Equity
 

Distributed solar can be deployed across diverse communities, including low-income and rural areas. Community solar programs and innovative financing models are making solar power accessible to populations that might not otherwise afford the upfront costs. This democratization of energy production helps address energy equity issues and ensures broader participation in the clean energy transition.

9. Technological Innovation and Market Competition
 

The growth of small-scale solar has spurred significant technological advancements and increased market competition. This has led to improvements in solar panel efficiency, energy storage solutions, and smart grid technologies. The competitive pressure from distributed resources has also encouraged utilities to improve their services and offer more innovative rate structures.

10. Climate Change Mitigation and Sustainability
 

Distributed solar plays a crucial role in combating climate change by displacing fossil fuel-generated electricity. As part of a comprehensive decarbonization strategy, these systems contribute to meeting national and international climate targets. Their modular nature allows for rapid deployment and scaling, making them an essential component in the urgent transition to a sustainable energy future.

The evidence presented by Professor Jacobson and other researchers demonstrates that behind-the-meter solar offers multifaceted benefits that extend far beyond simple cost calculations. As technology costs continue to decline and energy storage solutions become more accessible, the value proposition of distributed solar only grows stronger. Policymakers, utilities, and communities should recognize these advantages and work to create regulatory frameworks that support, rather than hinder, the continued growth of this vital energy resource.