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California utility PG&E has tested levels of residential solar power up to 100% penetration, and how to mitigate the effects of voltage and thermal overload via smart inverters and traditional transformer and circuit upgrades — with smart inverters shown to allow for up to 100% penetration at cost-effective pricing.

In less than nine months, permits will no longer be approved for new homes in California that don't include solar power of some sort. It is still not clear what portion of these homes that will come with a contract with a centralized community solar plant, and whether we’ll see 70,000 or 125,000+ new solar homes per year. Regardless, utilities must prepare.

Pacific Gas & Electric Company (PG&E) wanted to first better understand if and how smart solar inverters could address power quality problems as solar penetration levels on homes approach 100%, and then to understand the financial effects. The broad conclusion was that when penetration levels hit 100%, smart inverters — via management of Volt-VAR and Volt-Watt functions — could mostly keep the grid from experiencing significant voltage violations or thermal issues. They also found a very limited economic impact over 10 years, either positive or negative, when compared to traditional upgrades with a total net present value of -$4 per customer (net cost) to $57 per customer (net benefit) over 10 years.