Alternative Energy: The Next Frontier

The days of just being a specialist in home theater or A/V are dead. If your business is solely based on just installing A/V equipment, you are likely already struggling.

It's not like the warning signs haven't been there … it's been a five-year process watching the product lines become commoditized.

That's why most integrators are diversified, offering whole-house automation, lighting control, central vacuum, security, HVAC control, etc.

As for where's the next frontier, the writing is clearly on the wall: Energy management and energy monitoring are the future for most integration companies.

Many of your peers are already doing it.

High energy costs and the desire to reduce your electric bill have, historically, not been strong drivers for consumers to purchase systems like lighting control, smart thermostats, shade control, etc. In most cases, those systems were installed for convenience and their "cool factor." Most homeowners simply wanted them so they could show off the automation to their friends.

Welcome to a whole new mindset. The momentum for integrators to be "energy contractors" is everywhere. I see it as a two-phase offering:

• Energy Management/Monitoring
• Energy Creation

In terms of Energy Management/Monitoring, new technology allows homeowners to see their energy usage in real time and affect instant change and/or set global limits. It's the "Prius effect," meaning that instantaneous feedback of miles-per-gallon usage will alter a driver's behavior by up 15 percent. I've seen it myself. My wife has a bit of a "lead foot." Her new car gives real-time MPG. Guess what? She now finds herself driving to hit an MPG "target."

In the home, companies like Control4, Savant, Lutron and Crestron are leading the way with their "energy dashboards" that permit the homeowner to "load shed" electricity. By the way … there is no new special skill set required for you to start offering energy widgets, programming global limits, etc. All you have to do is start marketing it.

The second part of being the new Mr. Energy in your community is Energy Creation. This can take several forms, but it's primarily about installing solar/photovoltaic panels or wind turbines. These technologies are getting a boost from utility companies, who are aggressively deploying smart meters across the country. To do this, you have to either get an electrical contractor's license or partner closely with an electrician.

One veteran integrator equates his outlook on energy management and energy monitoring systems to the same feeling he had in the early 1990s about the Internet. He knew it was going to be really, really big somehow, but just not sure how big. I agree.

So would you rather claim the title of "Mr. Energy" in your local community, garnering a whole slew of new revenues, or cede the entire market and its incredible potential to your local utility, electrician or HVAC contractor?

It's your choice.


Smart Energy is one of 6 pillars of EHX Spring 2010, Orlando, Fla.