Today's Date: Tuesday, October 07, 2008
Green Services

November 30, 2007
Page 14 of 15
Green-technology service companies bridge the gap between technology and consumer. They provide financing options, direct-install, retail and cost-saving solutions for end users of green power and renewable energy.
Developing innovative service models for providing green power generation is considered a major step toward enhancing green technology's accessibility and reach. For many of the established technologies, such as wind and solar, cost improvements are being made in business-model development aimed toward distribution and sales models. One benefit of this model is risk internalization -- many of these companies absorb the risk of owning and operating green power-generation sources for consumers.
Key Components
- Renewable Power Providers - Renewable power providers own, operate and finance green power-generation sources. These companies partner with systems installers and energy consumers to reduce the risks and costs associated with installing and managing green power-generation systems. Through innovative contracts, such as power-purchase agreements, renewable-power providers are able to distribute the costs of owning and operating green power-generation systems. Under a power-purchase agreement, the energy consumer locks into a set price over a set time period, while the service provider maintains ownership and responsibility for the green power-generation system.
- Integration - Green-power integrators provide solutions for electricity consumers seeking to generate their own renewable energy. Integrated systems providers build turnkey systems for quick installation, provide installation support and site analysis and provide continued maintenance and upkeep on distributed-generation systems.
- Distributed Generation - Distributed generation means skipping around the utilities and power grid and generating power at the point of use. This option has for a long time been especially attractive to individuals living off the power grid. Now, however, homes and business looking to reduce their electricity bills and their environmental impact are hooking up with distributed-generation installers to generate electricity at the point of use. These service providers provide entire packages, including installation - BIPV or mini-turbines, for example - pricing and payment options, ongoing systems maintenance, building permits and site analysis.
- Retail - Retail stores represent the mainstreaming of green power generation. They provide consumers with technical training, installation support and advice, replacement parts for their distributed generation units, system maintenance and complete systems. Only a few stores devoted to renewable energy exist currently, though as prices come down on end units and as incentive programs become more widespread, we expect to see a number of companies take advantage of the growing retail market.
- Efficiency Services - Consumer monitoring of energy and resource use is an important means of driving down consumption. Efficiency technologies and applications operate regardless of the type of power-generation input (coal, wind, solar, biomass, etc.). Efficiency-monitoring companies work to help consumers reduce their environmental impact while also keeping costs down.
- Demand Response - Demand-response service providers monitor consumer demand and scale up or down energy consumption depending on the load requirements of the power grid. For example, during peak load hours a demand-response provider might scale down electricity usage for lighting or HVAC systems, and sell the excess electricity back to the grid. Utilities pay demand-response providers for the extra electricity, and demand-response providers pass on these revenues to consumers. Demand-response providers work with all types of power generation and create revenue through efficiency gains in power distribution.