But it has huge implications for Australia, which because of its high retail electricity costs (around 30c/kWh and higher in time of use areas), excellent solar resource, and huge penetration of rooftop solar (one in four houses in some states) finds itself at the cutting edge of this revolution.
In late 2013, the CSIRO predicted that battery storage could be economic in the mass market around 2040. Last year, AGL suggested it might be 2030. UBS suggested going completely off grid might be economic in 2018. Now, it seems, battery storage, is likely to be competitive for the average household in 2016, when the first Tesla battery systems are delivered in Australia.
Little wonder then, that AGL – which last month said it would phase out coal fired generation by 2050 – on Friday announced it would fast track its battery storage offering to consumers. Utilities are now realising that they need to act quickly to stay relevant in rapidly changing markets.