“Not only do big companies want greater controls over the energy that they consume and the prices that they pay but they also want to implement more onsite, or distributed energy, whereby they can power their own facilities through such things as rooftop solar panels by using localized microgrids.” Energy Manager Today
A growing desire to assure access to energy and the predictability of energy costs has many businesses and individuals opting for on-site power generation.
On-site power generation fulfills three primary needs of a business by providing the following benefits:
- Reduces the overall cost of energy
- Minimizes the risk of power disruption (rolling brownouts, weather related grid loss, etc.)
- Makes the future cost of energy predictable.
“The average global cost of generating electricity from solar panels fell 61 percent between 2009 and 2015” The New York Times
A recent discussion with an agricultural solar project developer detailed important trends at work in the on-site energy business.
On one hand the developer noted the size of client’s proposed projects continues to grow as the cost of solar panels decrease. On the other hand he noted that funding projects is a continuous concern. He complained that traditional financing sources were not geared towards solar projects, and a lack of financing has prevented many projects from moving forward.
Curt Monhart, EAG, V.P.
On the other end of the discussion was EAG’s V.P, Curt Monhart. The developer had requested a meeting with Monhart to learn more about Property Assessed Clean Energy (PACE, see video). The developer wanted to know if PACE could be a resource for his clients. His goal was to move more on-site solar projects from just a proposed (but unfunded) project, to an energy producing reality.
Monhart explained one of the unique benefits of Property Assessed Clean Energy. In Monhart’s words “PACE is a project closer”. Because PACE is expressly designed to foster the adoption of energy efficient technology, it overcomes the barrier of the upfront cost and the weakness of traditional bank loans that are often not energy-focused.
“Renewable energy is clearly popular, good for the economy, and the top energy choice for the biggest businesses in America” The Hill
As the demand for on-site energy grows, the need to overcome the question of how to fund the initial cost of projects will need to be answered in a way that is easy to understand. Complexity tends to lead towards inaction. Effectively answering the funding question leads to expanded use of on-site energy technologies.
“clean energy investments were more than double the estimated $130 billion invested in in coal and natural gas-fired power plants in 2015.” The Hill
EAG CEO Scott Ringlein
The On-Site Energy Conference & Expo is an event that answers the question of how to fund the cost of on-site energy projects. Conference organizers invited EAG’s CEO, Scott Ringlein, to participate in a special presentation on finance titled: Project Financing Tools that Reduce Customer Cost, Investor Risk and Distributor Hurdles.
It is interesting to note that the second slide of Ringlein’s presentation (view HERE) introduces the idea of PACE as a means of closing more deals by reducing the barrier of up-front costs. The remainder of the presentation details the many other benefits of PACE financing. It’s a presentation that all participants in the energy efficiency process should become familiar with.
“..relying on renewable sources means they (companies) can worry less about the kind of energy price instability the fossil fuels markets can create” The Guardian
In an article by The Guardian (quoted above) it was noted that we are in a “pivotal moment” by citing a growing list of businesses that have committed to powering their facilities from renewable sources of energy. The trend is well underway, and growing, as the cost of energy generating technology plummets. Businesses are realizing that responsible energy policies “can also save you money”
The trend of on-site energy as a tool for increasing profits, assuring access and reducing the price volatility of energy, make it a trend worth understanding. I predict Property Assessed Clean Energy will play a big role in accelerating this trend!
Special Report: PACE – A Paradigm Shift in Funding Energy Efficiency & Renewable Energy Projects
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