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Solar energy industry

Devising a Market Expansion Plan for a Company in the Solar Energy Industry | Infiniti’s Latest Market Research Solutions

Market Research Solution for a Solar Panel Manufacturer

With the rapidly expanding environmental awareness and gradual decline in the cost of solar installations, the US solar energy industry has witnessed a steady growth over the years. But, despite the massive growth of the solar industry, there are still several barriers that could hold solar energy companies back. Therefore, for companies who are new to the solar energy industry, it becomes imperative to conduct market research to identify the opportunities and challenges facing the solar energy industry.

The ever-increasing competition in the solar energy industry, triggered by factors such as affordability, decarbonization, and market dynamism are pressurizing leading players to enhance their current business models and projections. Are you facing such difficulties and looking for the right solution to mitigate them? If yes, request a FREE proposal to know how Infiniti's solution can help.

Business Challenge

The client is a solar panel manufacturer based out of the United Kingdom. The client was looking to expand to the US solar energy industry. However, before investing huge capital into the project, the client wanted to gain detailed insights into the US solar energy market. Also, before expanding into the new market, they wanted to understand the challenges facing the US solar energy industry and overcome them by devising value maximization strategies.

Other key challenges faced by the US solar energy industry were:

Solar energy industry challenge #1 

International competition and legality: The client noted that dealing with international competition and legal compliance were major challenges faced by solar panel suppliers in the US. Therefore, the client wanted to understand the changing laws and policies in the US energy market that could impact their growth.

Solar energy industry challenge #2

Need for modernizing grid infrastructure: This was another challenge faced by solar panel manufacturers. The client, therefore, wanted to identify the latest technologies and innovations implemented by the key player in the US solar energy industry. By doing so, they wanted to make improvements in their grid infrastructure by using technologies, equipment, and controls.

Solar energy industry challenge #3

Supply-demand challenges: As the solar panel installation began to grow in the US market, many leading solar panel suppliers started producing solar panels in huge quantity. This eventually created an oversupply of solar panels. Also, with this supply-demand mismatch, major solar panel manufacturers witnessed a huge decline in their net profit margins. The client, therefore, did not wish to take a chance. By understanding the market dynamism and requirements, they wanted to better manage production and supply.

Solutions Offered and Value Delivered

The experts at Infiniti Research conducted a thorough analysis of the US solar energy industry. The experts analyzed the top ten solar panel manufacturers in the US. The factors such as the latest innovations in design, average sales rate for the past 5 years, and their market position were taken into consideration. The experts also analyzed market potential for solar panel manufacturers and identified the key market entry barriers.

With Infiniti’s market research solution, the company in the solar energy industry was able to understand the market entry barriers and devise well-informed market expansion plans to enter the US solar energy market. Infiniti’s market research solution also helped the client to understand the latest technological innovations and trends in the market. This helped them to adapt to innovations in the market and make improvements in grid infrastructure. Furthermore, with Infiniti’s market research solution, they were able to easily adapt to the changing laws and regulations.

Also, the insights obtained from Infiniti’s market research solution helped the client to understand their competitors’ sales rate and make an accurate prediction about the potential market demand. This helped the company in the solar energy industry to establish a foothold in the US solar energy market and exceed their sales expectations within the course of one year.

With our expertise in offering market research solution, we’ve helped various major solar energy players to establish a leading edge in new and existing markets. Want to know how we helped our clients? CONTACT US!

Top trends shaping the future of the solar energy industry


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Want to gain insights into the top 5 solar panel manufacturers from around the world? Read the article below.

Top 5 Solar Panel Manufacturers from Around the Globe


Market Assessment Study for a Leading Solar Energy Company

Spiraling capital costs and the upfront expense of building and maintaining solar energy plants are considered to be major growth barriers for companies operating in the solar energy market.

Over the last few decades, the demand for power has increased manifold across the globe- being driven by the rise in government investments, technological innovations, and consumer demand. Despite the undeniable progress, companies operating in the solar energy sector face major challenges due to factors such as the continuously evolving regulatory framework, execution risks, and the implementation of renewable energy technology.

The deep-rooted nature of innovative technologies also presents a formidable barrier for the global clean energy market. Companies operating in the renewable energy segment such as solar, wind, and other such clean energy sources will have to compete with their peers in the industry to benefit from the existing infrastructure, policies, and technical expertise. Moreover, the high costs associated with the infrastructure tend to make the financial establishments more likely to perceive the clean energy market as risky, loaning money at higher rates and making it difficult for companies to justify their investments.

The Business Challenge

  • The client: A solar energy company

To devise a list of key influencers and precisely target the decision-makers in the global energy market, the client – a leading solar energy company – approached Infiniti to engage in a market assessment study. The B2B industrial organization was looking at creating a new business unit that would focus on offering end-to-end solar energy solutions.

The solar energy company wanted to conduct a market assessment study to identify and assess the opportunities in the global energy market. However, their primary objective was to establish a business case for market entry and investment including the recommendation of a go-to-market strategy.

How Can Market Assessment Help Players in the Energy Market?

A market assessment study acts as a great instrument for businesses to gain a detailed understanding of the market in which they operate. Market assessments are not very extensive or expensive when compared with other benchmarking assessments. They offer a quick and precise snapshot of the existing market conditions and also hints at how the future may look like. Also, market assessment studies help business organizations to identify and capitalize on new market opportunities and areas- especially where the enterprise can get a prodigious deal.

Summary of our market assessment engagement

Energy Market

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Client Journey

Infiniti’s market assessment engagement helped the solar energy company to focus on market penetration by developing more accurate marketing strategies. The changing market landscape with aggressive competitors posed several challenges for players in the global solar energy market. To help the client assess the opportunities in the global energy market, the market assessment experts at Infiniti conducted a market assessment study that offered valuable insights on decision-making procedures, market trends, and barriers.

The approach included primary and secondary research methodologies coupled with qualitative and quantitative data collection procedures. The experts also reached out to various stakeholders in the energy market.

Solution Benefits and the Business Impact

Infiniti’s market assessment experts offered end-to-end solutions that helped the solar energy company to better align their goals with the market needs. The market assessment study also enabled the client to build a business model to better understand and analyze the potential market opportunities.

The energy company also gained insights on market trends that helped them make necessary adjustments in their design and development approach and product marketing strategies.

The Future

The global trend in the solar energy market is the rising use of IoT technologies. Leveraging such technologies not only provides real-time insights but can also brings about major improvements in smart metering; thereby, making the entire process of energy production more cost-efficient. The implementation of IoT ensures that the system is less susceptible to security breaches and productivity issues.

However, companies in the solar energy market should focus on enhancing the development of the connected products, which makes it easier to focus on what’s important for the firm in the most efficient way.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the global energy market.

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Is the APAC Region Gearing Towards a Sustainable Future with Renewable Energy?

The world’s energy needs are constantly on the rise, and power companies are looking at all sorts of possibilities and modes to fulfill the increasing demand. It’s a tough task to produce enough electricity to power the needs of all the people across the world. A traditional source such as fossil fuel has been used on a wide scale as the most significant source of energy. However, due to environmental concerns and increasing emissions, governments across the world are slowly reducing their dependence on fossil fuels and are switching over to a cleaner source of energy. As a result, renewable energy sources have been grabbing the headlines more often. The APAC region has been regarded as the prime example for the adoption of renewable energy sources for their power requirements. Numerous reports estimate the energy demand in the APAC region to nearly double by 2030. The region is on the right path to meet such demands even after reducing their dependence on traditional sources. The Chinese government is expected to IR_Brochuremove away from energy production from coal, which kills thousands of people each year. So, what does the renewable energy future look like in the Asia-pacific region?


China is a world leader in wind energy generation and has ambitious plans to triple its solar power capacity by 2020. The country is aiming to raise its solar energy generation to 150GW and wind energy generation to around 250GW by 2020. Although the renewable energy sources accounted for approximately 14% of Chinese power, they expect to increase this figure to 22% by 2020. In 2017, China announced to scrap their plans to build 85 coal-fired power plants and instead pour about $350 billion into renewable energy. Additionally, the authorities reported that the country had exceeded official targets for carbon intensity, energy efficiency, and the share of clean energy source.


Similar to China, in 2015, India also announced their ambitious goal of increasing the renewable energy power capacity to 175GW by 2022. This plan includes increasing the solar capacity to 100GW, wind energy to 60GW, bioenergy to 10GW, and hydropower to 5GW. If they achieve this target, then they will witness a five-fold increase in power capacity in a span of seven years. Currently, India is the fourth largest installer of wind power behind China, the US, and Germany. India has been largely helped by the falling solar installation prices, with the rate falling as low as 4 cents a kilowatt hour to add 250MW of solar capacity in Rajasthan.


The shift towards a renewable energy future seems to be picking up steams in Japan. After the Tohoku earthquake, 2011 Tsunami, and triple meltdowns at the Fukushima nuclear power plant, the Japanese government introduced a feed-in tariff system to promote renewable energy. The scheme made it mandatory for utilities to purchase wind, solar, mini-hydro, and geothermal energy at a fixed rate for the specified number of years. A report from IEEFA expects Japan’s solar energy to account for 12% of electricity mix by the year 2030. The report also estimates the renewable capacity to reach 159GW by the year 2030.


The success of solar farms in Thailand coupled with positive development in other clean energy resource puts Thailand right on track to achieve its goal to reach the share of renewable energy by more than 37% by 2036. Additionally, the development of ultra-fast charging battery in Singapore is showing a promising renewable energy future as it can charge batteries up to 70% in just two minutes.

To know more about the renewable energy future in APAC region:

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Pros and Cons of Nuclear Energy You Should Know

The origins of nuclear energy can be traced back to 1932 when physicist Ernest Rutherford discovered that immense amount of energy was released when lithium ions were split by protons from a proton accelerator. After subsequent discoveries from Niels Bohr and Albert Einstein, nuclear energy was able to power nuclear reactor for energy generation. Today, uranium, a common element in the Earth’s crust, is the element of choice for conducting nuclear fission for generating electricity. Going by today’s consumption rate of the element, numerous studies estimate the IR_Brochurereserves to last for another 200 years’ worth of supply. Nuclear energy is distinct from any other source of energy and has its own sets of pros and cons.

Advantages of nuclear energy

Continuous electricity generation

Nuclear power unlike other sources of energy is independent of natural conditions. For instance, solar and wind energy is highly dependent on hours of sunlight or wind which doesn’t usually coincide with fluctuating energy demands. A nuclear power plant is generating electricity about 90% of the annual time which is relatively high compared to other forms of renewable energy. In comparison, natural gas generates an average electricity of 50% of the annual time, while coal and wind produce energy at almost 51% and 32% respectively.

Output efficiency

A significant advantage of using nuclear power over fossil fuel is the relatively low amount of fuel it is required to produce an equivalent amount of energy. The cost of nuclear fuel, i.e., uranium, accounts for only 20% of the cost of electricity generated. Such high levels of efficiency also make it easier in transportation, handling, and extraction of nuclear fuel and subsequently reduces the overall costs in the supply chain.

Clean source of energy

The only byproduct generated out of a nuclear power plant is used uranium which is safely stored in pools or concrete containers. Unlike other fossil fuel source, it does not emit CO2 causing air pollution and acid rain. Of all the clean energy sources like wind, solar, and hydro, nuclear power is the most significant source of clean-energy generation in the US contributing to 64% of the total output.

Disadvantages of nuclear energy

Radioactive waste

The radioactive waste generated as a byproduct of nuclear power is hazardous and has to be carefully stored and monitored for several thousand years. Although high-security standard is maintained to store this waste effectively, accidents can still happen with deadly consequences for both humans and nature. A nuclear or radiation accident such as Fukushima Daiichi nuclear disaster, Chernobyl disaster, and Three Mile Island accident have posed serious questions to the safety of nuclear energy.

High capital investment

Capital Investment

Although the fuel source of nuclear power, uranium, is relatively low, the cost of electricity is significantly driven by the high rate of initial investment for constructing a nuclear plant. So nuclear plant will have to run for a number of years in order to recoup the initial investment. Additionally, nuclear plants also have a limited life; after expiry, they have to be dismantled. The construction time for a nuclear power plant usually takes 4-5 years with a payback period of over 30 years which is relatively high considering other source of energy.

Fuel availability

Fossil fuels can be mined in many parts of the world, which is not particularly accurate for uranium, which is a very scarce resource. Only a handful of countries have uranium ores, and getting the approval from several international authorities is a tiresome process before building a nuclear power plant. As a result, not many countries can depend on nuclear energy to fulfill the energy demand.

To know more about pros and cons of nuclear energy, nuclear power plant, and the nuclear reactor:

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What are the Barriers to Successfully Implementing Renewable Energy?

Renewable energy has the potential to solve a majority of the energy shortage and demand issues around the world. And what is the cherry on top of the cake? That is, it’s extremely pocket-friendly. The benefits of renewable energy have attracted a large number of players to formulate new technologies by implementing clean energy sources. But the journey to success for renewable sources of generating energy is not as easy as it seems to be. Commercialization barriers faced by new technology, price distortions from existing subsidies, high transaction cost, and inadequate information are some of the few drawbacks that players seeking to venture into the renewable energy market face.  Let us discuss a few of them in detail:

Building infrastructure

Renewable energy requires a considerable amount of initial investment, especially in the technology involved to harness energy from these sources. It also involves the cost for finding the apt sites to set up the infrastructure necessary for generating energy. For e.g., to generate wind energy, developers must first identify the most apt site with the appropriate flow of wind to set up the windmills. Also, the costs associated with the installation and maintenance of the infrastructure for renewable energy is also high.

Lack of information  

In most cases, the successful implementation of a product or a service depends greatly on the level of information that the customers have on them.  With renewable energy, many customers are still not fully aware of its applications and benefits. To add on, there are many false rumors making the rounds about renewable energy that adds to the customer’s confusion. For e.g., there is a common belief that solar and wind energy are not dependable because they are available only during the times sun is shining or the wind is blowing.

Comparatively smaller size of players

The companies and players undertaking clean energy projects are usually smaller in size compared to the established giants in the energy industry. Therefore, the resources and exposure available to these companies are much lesser. Also, they have limited ability to communicate with the customers and lesser say in regulatory and legislative proceedings, which makes it more difficult for them to establish themselves in the market.

High transaction costs

As mentioned earlier, players in the clean energy industry are less established and are smaller players. Therefore, proving their credit-worthiness to banks or negotiating contracts becomes an expensive affair. Also, being small players becomes a major drawback in convincing residential customers to pay for renewables as it gets a little tricky to gain their trust unless it is an established brand.

To know more about the opportunities in the renewable energy industry and the major market challenges and threats
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Related Insights: 

  1. The “Next Gen” Renewable Energy Innovations and their Pioneers
  2. 4 Renewable Energy Sources Paving a Green Pathway for Commercial Sustainability

What’s Bothering the Energy Industry Across the World?

The energy industry comprises of the petroleum, gas, electrical, coal, nuclear, and renewable energy sectors. In recent times, renewable energy has started taking precedence over non-renewable energy sources such as petroleum and coal. This is because of rising consumer awareness towards global warming and government initiatives to curb pollution. Although both the renewable and non-renewable energy industry is growing at a healthy rate, there are some challenges faced by both these sectors.IR_Brochure

Challenges Faced by the Energy Industry

Meeting Decarbonization Targets

In the 2015 Paris Climate Conference, 200 countries committed to COP21, which has identified an ambitious set of goals. In a bid to limit the global warming activities across the world, countries are putting up legislations to curb emissions and provide incentives to businesses with lower or no carbon emission. Numerous reports list that 41% of the world’s total CO2 emissions are caused by the energy industry companies, resulting in initiatives to decarbonize energy supply with renewable energy resources. To show its commitment to COP21, countries such as UAE have vowed to reduce its fossil fuel subsidies and have invested US$163 billion in renewable energy projects. Also, nations and companies having positive carbon balance can sell its carbon credit to companies with higher emissions. Such incentives discourage companies to reduce its carbon footprint and the energy industry players to opt for such alternatives.

Ease of Access and Affordability

Energy access has been largely limited to only the developed and urbanized parts of the world. The accessibility problem is still posing as a significant challenge to the energy industry. The energy prices vary across the globe depending on numerous factors. In multiple regions, the affordability issue seems to be more prominent as it drives the prices of all other consumer goods. For instance, Germany has the highest rate for per kilowatt hour of electricity at 28.18 euros, which is compelling the manufacturing units in the country to outsource production to the low-cost region.

Investment and Returns

The level of investments required for energy generation projects is so significant that it usually has to be backed up by investments from world bank or governments. The typical project cost for energy generation runs over billions of dollars. For instance, in 2005, a conference on renewable energy investment in India had private companies committing around $200 billion in investments into green energy. With such massive investments, the pressure on returns is much higher. The increasing cost of operations and maintenance can reduce the plant availability for power supply to the grid; thereby, diminishing the returns. Additionally, regulatory approvals, construction and technology risks create a significant challenge for the energy industry in delivering energy projects on time, within the stipulated cost and quality targets.


To know more about challenges faced by the energy industry, huge capital requirements, ease of access and affordability, and decarbonizing targets:

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Opportunity to Leapfrog into Energy Transition: Is China on the Right Track?

In the early 21st century, China took the world by surprise when it sustained rapid, coal-intensive growth. This made them the major contributor to global coal use and greenhouse gas emission across the globe. The growing concern pertaining to environmental pollution has called for urgent eco-friendly and energy transition measures in China. As per the five-year plan passed by China in 2016, reform and transition are the main agenda on the cards for China.IR_Brochure

Evolution of China’s Energy Demand

Coal has long been the dominant source of energy consumed in China. In the early 2000s, China had contributed to half of the global coal consumption. However, the changeover to “green industrial policy” by the Chinese government has forced many companies to look at opportunities for energy transition to zero-emission renewable sources. This has eventually changed China’s energy supply mix dramatically, dropping the dependence on coal. Also with the help of the government’s promotional policies, companies who have focused on environment-friendly and energy-saving practices have attained rapid growth.

In China, electricity generation was one of the key factors accounting for emissions. But due to China’s eco-friendly paradigm shift in energy transition, measures have been taken to reduce the dependence on coal for generating electricity and substituting the same with renewable sources of energy. Also, the Chinese government had implemented measures to reduce carbon emission from vehicles by promoting the use of electric vehicles in the country. This was one of the major energy transition reforms adopted by the Chinese government to control the swelling pollution.

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Why is it Still a Long Road Ahead for China in Energy Transition?

Despite positive signs of progress in terms of eco-friendly measures, China still has a rocky road of challenges ahead of them before they attain complete energy transition.

Inability to Eliminate Coal

The decentralization of power to approve environmental impact assessments from national to provincial level, gave the power to local governments to invest in new thermal power plants. The local governments were urged to approve these projects in the belief that investments would boost the economy. As such, the dependence on coal has increased at a significantly low level.

Wind and Solar Curtailments

China has numerous limitations when it comes to electricity dispatching and absorption mechanism, which does not go hand in hand with the speedy development of renewable energy. The rapid growth of investments in new power plants along with the restrictions involved in the usage of wind and solar energy has aggravated this problem.

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The “Next Gen” Renewable Energy Innovations and their Pioneers

The importance of renewable energy has been skyrocketing among innovators and companies owing to the increasing focus on environmental protection and sustenance. Innovators from different parts of the world are leaving no stone unturned to find more ways of resorting to clean energy. Here is our pick of top innovations in renewable energy that are most likely to make it big in the future:IR_Brochure

Jet Stream Power

A small-scale US/Indian company known as Skymill Energy is trying to harness the high-altitude jet-stream winds that blow at a speed of over 200mph at almost 30,000ft. Skymill Energy is doing this by using a remote rotary-lift aerial vehicle such as a helicopter, which is attached to a generator on the ground to harness this renewable technology. This source of clean energy promises vast renewable energy, no pollution, easily available materials and straightforward technology.

Desert Soils

Humus Analysis is a French company that makes compost from food waste products from the oil industry and also municipal wastes. This company is also looking at building soil which is fertile enough to support grass and edible crops in the long run. Their technology will prove to be a significant source of renewable energy in the long run and will help reduce water use and save energy significantly.

Solar Fridge                                       

Coldinnov is a small French company that specializes in developing PV-powered solar refrigerators. This technology is best suited for off-grid villages, remote bars wanting to make ice, or even in healthcare centers. Solar refrigerators use advanced insulation, eliminating the use of batteries or converters. They keep the temperature cool for more than 75 hours.

Desert Oases

The electronics giant Hitachi is developing new renewable energy technology with de-salination plants that pumps saline water with the help of PV electricity and then cleans the water using reverse osmosis technology. This technology can be used to purify and use saline water, thus, helping in water conservation in the long run.

Micro Geothermal

In 2001, an Indian hydro-geologist named Ritesh Arya found groundwater at over 11,000ft in the Himalayas. He is backed by three Nordic research groups and also by the Norwegian oil giant Statoil. They are trying to discover new geo-thermal sources in places that weren’t thought of before. Geo-thermal energy created from these sources could be a great provider of renewable energy.

To know more about the latest renewable energy trends and leading innovatorsAsk an analyst

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4 Renewable Energy Sources Paving a Green Pathway for Commercial Sustainability

The industrial and commercial players are increasingly becoming a part of the “go green bandwagon.”  The motivation for this paradigm shift to clean energy could be cost-cutting, pressure from regulatory mandates, or the desire to be more socially responsible. This has called for an increasing demand for renewable energy sources in the commercial sector; as a result of which, companies are looking at the latest and most innovative sIR_Brochureources to implement into their business processes.


What is it: Bioenergy is a type of renewable energy that is derived from biomass, i.e., any organic matter coming from plants or animals that had been living recently. This is mainly used to create heat and electricity or for the production of LPG (Ethanol and Biodiesel). Although bioenergy releases almost the same amount of carbon dioxide as compared to fossil fuels, environment neutrality is maintained through the replacement plants that are grown as biomass to remove a significant amount of carbon dioxide from the atmosphere.

How companies can use it: The usage of bioenergy by companies depends on the operations they undertake, some of the ways this renewable energy can be incorporated into your business are –

  • Switch over to fleet vehicles that use bioenergy as fuel
  • Equip manufacturing facilities to burn biomass directly; the steam produced can be captured by a turbine to generate electricity
  • Waste from livestock in farm operations can be used to generate electricity using small modular systems


What is it: This type of renewable energy or clean energy is derived from the heat of the earth. The geothermal plants use heat that is sourced either from heating rocks or reservoirs of underground hot water to generate electricity.

How companies can use it: Geothermal energy can be used by companies on a large scale. Here are some of its uses for a business organization:

  • Heating office buildings or manufacturing plants
  • Facilitates the growth of greenhouse plants
  • Water at fish farms can be heated
  • Aiding several industrial processes; g., pasteurization of milk

Solar Energy

What is it: Solar energy is the renewable energy source derived from sunlight. Photo-voltaic systems using solar cells are used to convert sunlight into electricity.

How companies can use it: Business entities have a wide range of opportunities to exploit using solar energy  –

  • Solar energy can be incorporated into the organization’s cooling, water-heating, and ventilation systems to cut down costs
  • Solar energy can be used to power agricultural and manufacturing operations
  • Companies can incorporate solar power transportation and save money

Wind Energy:

What is it:  Wind is a renewable source of energy that is harnessed from capturing the wind flow into turbines and converting it into electricity.

How companies can use it: Wind energy is one of the most sustainable sources of energy for a business to cut its electricity costs.

  • Can be used by organizations to substitute their existing electrical supply
  • The large farms can be converted for using wind energy alongside regular farming; this helps them to use this energy for personal purpose as well as gain more money by leasing them out

To know more about renewable energy sourcesAsk an analyst


Distributed Energy Resources – Is it Threatening the Existence of Traditional Utility Business Models

The world has witnessed the rapid development of gigantic power grid lines that are powering houses and industries across the globe. The world’s first central power station was built in Pearl Street, Manhattan, by Thomas Edison, but had problems scaling economically to a larger geographic area as it needed installation of numerous power stations nearby. This problem was solved by Nicola Tesla’s idea of using alternating current to supply electricity over large distances efficiently. However, over time, this system has proved inefficient, as it cannot effectively scale-up or scale-down, as the power demand surges or goes down. To tackle such problems, distributed energy resources have been looked up as a promising alternative.IR_Brochure

Why Distributed Energy Resources?

Distributed energy resources are being used as an alternative to tackle the increased demand for electrical power systems, power blackouts, power quality problems, and electricity price hikes posed by distributing power through large power stations. Instead of constructing large, expensive central power plants and high-voltage transmission lines, distributed energy resources offer consumers a low-cost option which is highly reliable with increased energy efficiency providing them energy independence. For instance, by using a solar or photovoltaic (PV) system, homes and business owners can offset the electricity costs by reliably producing electricity. Additionally, these power sources are local and renewable, providing significant environmental benefits.

Distributed Energy Resources Challenges

Currently, there are numerous distributed generation technologies ranging from solar, wind turbines, microgrids, and gas-fired microturbines for backup power generation and energy storage. Amongst these, solar power and wind turbines output are dependent on an intermittent resource, making it difficult to predict the amount of power that will be available at any given time of the day. The other problem with this technology lies in the distributed energy resources management system, as the system accounts for a higher percentage of system losses in comparison to higher-voltage transmission systems. Apart from the technical factor, distributed power generation requires a high amount of investment from each individual user along the network. For instance, installing solar power system for a regular home can cost anywhere in the range of $25,000-$35,000, with a payback period of 20 to 25 years. Despite the challenges posed by distributed energy resources, many analysts and consumers are optimistic that technology cost reduction will increase penetration of this model, threatening the existence of traditional utility business models.

To know more about distributed energy resources, energy efficiency, distributed generation technologies, solar power system, and distributed power generation:

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