Decentralizing power generation will likely increase the implementation of smart infrastructure to the existing grid. The existing grid allows for a simple relationship in which energy producers send energy to consumers. With the influence of decentralization, upgrading the grid will offer the opportunity for an interactive exchange of energy between consumers and producers. In addition, a larger range of energy sources are likely to sprout up across communities, including residential energy applications known as distributed energy resources (DERs). Net metering will be more available in this scenario, making residential energy costs lower for consumers interested in an investment in a DER. These changes will allow companies focused on commercial energy production and residential energy system technology to both find niches. In addition, a need for construction companies to install the expected increase in DERs and energy production infrastructure will emerge.
I would be interested in creating a company that caters to small businesses interested in installing DEPs to net meter and power their businesses. I would choose the either operate in consulting or installation, probably not both – at least not at first. As a consulting firm, the ability to assess a business site (analyzing energy production potential for multiple renewable sources – like wind and solar), predict costs, and coordinate with installation companies would be the bulk of the company operations. However, if I would choose to create an installation company, I would need some ability to market the product and find customers on my own or through a consulting firm of some sort. Personally, the consulting end seems more interesting. I would have less capital to invest in, less people to hire, and greater freedom to run the business in response to public interest, energy prices, and other factors related to the economic viability of renewable energy.
When utilities pay for electricity to be put back on the grid, they get to resell it. Utility companies are also better able to handle peak loads with the help of distributed sources. To me, one of the biggest appeals is that less local energy is lost in transmission, compared to distant, centralized sources. I can understand the push back from utility companies, they have a lot of policy working against their ability to maximize profit. Look at Act 129, which requires utility companies to sell less energy over time. To me, distributed energy sources are the least of their worries, and may even be an opportunity/loophole to slimming down on production. It’s such a complicated affair. As changes are made toward renewables, there will be bumps in the road.
Hi Marielle! You brought up an interesting point about net metering. I wonder though with decentralization, I think net metering will become a more heated and controversial topic. There are already utility companies that don’t like net metering because they feel that there fixed costs are no longer being met since they are paying people for the electricity that is being put back on the grid. If utility companies are smaller, I think net metering will be more of an issue because smaller companies may not be able to afford to pay consumers for electricity they are putting on the grid. Thoughts?