1. The Problem: Solar System Vendors Do Not Understand the Energy Market; They Only Understand Their Product.
Solar is all the rage, but there is a serious problem. Solar systems offset a portion of your electricity use but they cause the rest of the electricity you buy to cost significantly more. There is not a direct correlation between reduced energy consumption through solar systems and reduced energy costs. Few solar installers are equipped with enough market knowledge specific to your utility provider and your business to help you make the most of this very large investment.
2. The Details: Solar Systems Have Upstream Effects on Energy Pricing That Vendors Do Not Account for When Calculating Paybacks.
It doesn’t matter what new equipment you install; the utility company is required by law to provide your peak demand whenever you need it. This means that even after you install a solar system, your utility provider must keep the same amount of energy in the grid, on your behalf, around the clock. The way a utility company is able to afford to keep your peak demand on the grid at all times is by charging a certain price for every Kilowatt hour you use. But solar panels cause you to buy fewer Kilowatt-hours. So, without a utility strategy, when you install solar, there is only one way the utility company can afford to keep your peak demand on the grid, which is by charging significantly more for the kilowatt-hours you do buy. It is not a good idea to purchase and install this expensive equipment without considering how your specific utility market functions and what the ramifications on energy pricing may be once your solar system is installed. A utility strategy must be formulated prior to engineering your solar system. Neither your vendor nor your utility provider should be charged with this task; it is not their function. Engineering and application of your solar system should be dictated by your utility strategy to account for and mitigate cost increases.
3. The Solution: Start With A Strategy, Not A Product!
Solar systems must be paired with a market-specific utility strategy that takes these dynamics into account. With the right considerations and strategies, there are ways to achieve incredible energy cost reductions with solar and enhance ROI on your investment by as much as 75%. A utility strategy that can achieve these cost-saving outcomes must be based on knowledge of your specific utility market. Tactical Energy Group leverages precise knowledge of the Michiana utility market to reduce energy costs and can enhance ROI on expensive investments like solar.
