Making Green Energy Profitable: The Boom In Distributed Renewable Energy
This is a guest post written by Nick Blitterswyk, founder and CEO of Urban Green Energy (UGE).
The distributed renewable energy (DRE) industry has gone through significant changes in the last five years, as the industry grew from a cottage industry to one with worldwide revenues of $100 billion and rising. The market has come back down to earth from the highs of 2005 to 2009, when investors’ bets on technology companies and manufacturers went sour as supply outstripped demand. As the latter continued to grow, profitable business models and clear leaders have emerged, and along have come opportunities. Successful IPO’s have countered a lackluster clean tech investment environment, showing that there is success to be had for companies with a winning formula.
SolarCity is one stellar example: they took a pretty simple piece of technology, rooftop solar panels, and became the leading solar installer in the U.S. by revolutionizing the financial vehicles that allow customers to receive a system with no money down, at less cost than their current electricity rate, and without having to go through all the paperwork necessary to monetize government incentives. Financing provided by SolarCity is much more than a revenue growth accelerator, it’s at the core of the business model itself. By focusing only on states that offer adequate government incentives, a relatively small market when compared to the g...