Schneider Electric System Costs of Electricity Report 2026

Schneider Electric Research Institute’s System Costs of Electricity: A New Baseline for the 21st Century Economy examines whether widespread adoption of rooftop solar and battery storage can reduce electricity costs across the economy. The report evaluates distributed energy resources (DERs), electricity grid costs and the relationship between decentralized generation, storage and electrification, challenging concerns that greater rooftop solar adoption will necessarily increase costs for remaining grid users.

The November 2026 research uses a Total System Costs (TSC) model covering 40,500 scenarios. It combines rooftop solar and battery costs with fixed and variable expenses associated with centralized electricity generation and grids. The analysis considers residential, commercial and industrial electricity demand, different technology costs, battery configurations and electrification levels, using a baseline electricity system cost of US$160 per MWh.

Under current world-average installed technology costs, the model finds that optimized electricity system costs could fall 10% below the baseline, with potential reductions reaching 40% under projected 2030s costs. Current US installation costs produce a different outcome, with modeled optimal system costs approximately 20% above the benchmark. The research identifies coordinated battery deployment and electrification as essential to improving grid utilization and distributing fixed infrastructure costs across additional electricity demand.

The findings have implications for energy policymakers, utilities, businesses and investors planning distributed energy investments. Schneider Electric recommends encouraging combined solar and battery adoption, improving electricity tariff design, coordinating electrification with generation and strengthening equipment supply chains. However, the results are based on conceptual modelling rather than actual electricity networks and exclude solar exports and detailed physical grid constraints. Access the original full report here: click here.

Official Report Source

Report: System Costs of Electricity: A New Baseline for the 21st Century Economy

Published by: Schneider Electric Research Institute

Edition / Publication Year: 2026

Publication Date: November 10, 2026