The Age of Energy Problem Solvers has Arrived

As we all take the latest ride on the Solar Coaster, with changes in tariffs, taxes, and technologies delivering new challenges and opportunities at breakneck speed, this summer seems a good time to step back and listen to what the market is telling us. A couple of trends have become clearer for commercial solar project developers and their customers.

1. Batteries: The Future is Now.
While tax incentives for commercial solar will soon be gone battery projects are covered through 2033. Costs of storage systems have been volatile in response to changing tariffs, but the overall trend is down. And technology in both hardware and software for storage system integration and operation makes adding storage to new and existing solar systems far easier than just two years ago.

2. Electricity Prices: Up and Away.
With utility loads growing more rapidly than any time in the past thirty years (primarily due to the buildout of data centers associated with the artificial intelligence boom), costly upgrades to utility infrastructure are now underway. Most experts forecast significant increases in electricity prices for the rest of the decade and beyond. Indeed, such increases are already underway in many states, especially for commercial customers.

The impact of these cost increases are compounded by greater complexity in utility rates, with the highest penalties going to on-peak usage (when solar generation is usually low).

Together, these two trends deliver a clear message. The market is screaming at every solar developer who will listen. Go back to existing solar customers with an offer to add battery storage.

For many commercial project developers, this is unfamiliar territory. “Repeat business” is surprisingly uncommon in our industry. But you are about 5x to 10x more likely to close a sale with an existing customer than a new prospect, and that repeat business leads to more repeat business.

In this market, the successful project developer will take on a new roll of “energy problem solver” for customers, attacking the utility bill from every angle:

• Adding storage for both resiliency and economic gain
• Coupling battery storage with EV charging systems to control costs
• Adding flexible load control to maximize solar and battery value
• Participating in new load flexibility programs with incentives for shifting energy usage
• Showing customers the full economic value of these energy solutions with simple and compelling monitoring and reporting tools

Commercial project developers can no longer measure success by solar panel sales. Businesses that operate as energy problem solvers will overtake those businesses that continue to function as a “panel sales force” in the current market.