Business shifting utility industry
Elon Musk and Tesla are constantly making the headlines – the business is creating disruption, and its real news. Tesla is fundamentally changing the economics of energy and many are asking how its innovations will impact the utility industry in the long run. According to Musk, we are slowly transforming into an electricity-based economy, which means central station power and the grid will become increasingly important in the future.
Electric cars creating change
The shift toward a 21st century electric industry will not happen overnight since government regulation favors utility control and battery costs remain high. Electric cars, for example, have become increasingly popular but still face a steep fixed cost for batteries and the limited availability of charging stations. The electric car industry is fulfilling the consumer desire to actively decrease their carbon footprint but must continue to develop multiple vehicles styles and corresponding price points. Additionally, there is a lack of charging infrastructure, meaning more must be built to serve existing owners and individuals considering an electric car purchase. Electricity, however, is significantly cheaper than gas and consumers will quickly shift to electric vehicles once costs of electric car ownership decrease.
Consumers influencing industry changes
Furthermore, consumers are motivated to find alternative energy sources and products that will help them “go green.” The demand is apparent – when Tesla announced their stationary battery unit in early May, it sold out in under one week. The Powerwall, the home product version of the battery, had 38,000 reservations and the Powerpack, the corresponding utility version, garnered 2,500 requests. If Tesla can capitalize on social and monetary incentives, they can continue to grow the electric industry by creating affordable, alternative solutions to motivate consumers and utilities alike to transfer to electric.
Building relationships between utilities and their consumers
Brilliency understands that collaboration is key for both consumers and utilities throughout this shift in the industry. As consumers take control of their consumption, and then generation and storage, utilities realize new opportunities. If trust and communication is fluid between these historically disparate groups, assets are shared in real-time and a truly valuable relationship emerges. Brilliency’s approach to the changing industry focuses in on consumer engagement and facilitating communication ~ friendship ~ between the two.