The feasibility of residential microgrids: a hypothetical neighborhood in Davis, California

Microgrids create a local electric system partly or completely detached from the grid. Microgrid neighborhoods potentially offer more reliable power, lower costs, zero greenhouse gas emissions, improved air quality, ability to level power demands on the grid, and positive net electricity production. However, until now microgrids have primarily been used for military and institutional projects. To improve understanding of residential microgrid design and performance, we analyze current literature, discuss existing examples, and calculate energy use and cost for a hypothetical microgrid neighborhood in Davis, California. We find that such a neighborhood could easily achieve zero net operating energy status annually for both homes and cars, with a 16-year payback period or 7 years if owners also adopt electric vehicles. Similar results are likely in warm climates globally. If built at scale, microgrid neighborhoods could thus be a main tool to reduce residential GHG emissions and improve energy service resiliency.