A new report from Navigant Research provides insights on business model innovations and differentiators across distributed energy generators.
Recently there has been a change in the way distributed and renewable energy programs are viewed around the world. Tremendous fundamental shifts in operating models and business strategies continue to be anticipated across key market participants.
The report, Innovating New Distributed Generation Business Models, explores how stakeholders across the value chain must define their value propositions and reassess their business strategies to pursue growth opportunities in these exciting times. Navigant Research also provides recommendations for how project finance investors, business model innovators, distributed energy resource (DER) value chain participants, and energy suppliers should work together to deliver innovative distributed generation business models.
“While renewable investments have achieved grid parity, the vibrant behind the meter (BTM) distributed market has quickly taken shape, flooded with numerous small and large solutions providers,” says Pritil Gunjan, senior research analyst at Navigant Research. “Distributed energy generation has come of age around the world’s fastest growing economies.”
According to the report, to stay competitive in this market, business model innovators should promote the adoption of third-party financing to remove high upfront installation costs and perceived performance risks. Project finance investors should reduce risks and improve cash flow predictability of innovative business models by investing in DERs, while DER value chain participants should bring attention to service-focused solutions and offerings.
An executive summary of the report is available for download here.