Worst DIY Installs Ever Part 7
10 Must-Have Products for Your Next Install
6 Amazing High-End Home Theaters
8 Awesome Turntables for Spinning Vinyl
Print
Email
Comments (0)
Share
Alternative Energy: What You Need to Know
Integrators create business models surrounding energy management and solar panel installations. Demand is strong, margins are OK, and competition is scarce.
Integrators create business models surrounding energy management and solar panel installations. Demand is strong, margins are OK, and competition is scarce.
The future of custom installation is here and it has a decidedly "green" tinge. With all the talk about "going green" over the past five years, integrators have had difficulty earning "the other green" (aka cash) from these eco trends.
Consumers talked about it, but not many forked out the dough for control systems that monitor and manage their energy costs or for ecological power-generation products. Thus, few integration companies embraced the trend.
Today, there has been a general swelling in public acceptance due to the growing "greening of America" awareness and tax incentives brought to the forefront by President Obama and due to new green technologies that boost efficiency at more affordable prices.
The result is the ripening of the energy management/monitoring/creation market. For many integrators, alternative energy is on the tree, like a fat, juicy peach, ready to be picked.
For many CE pros, the maturation of the market couldn't be coming at a better time, as audio/video and control/automation continue to be commoditized by dramatically falling equipment prices. In different parts of the nation, dealers are already earning new revenues and profits from installing and managing alternative energy systems.
The business models are wide-ranging … some dealers are dropping A/V altogether to concentrate in the field. Others are partnering with electricians and energy specialists and focusing on niche products like wind turbines or solar panels only. Some are getting electrical contracting licenses and LEED (Leadership in Energy & Environmental Design) certification. Still others are moving into the field more cautiously, choosing to only monitor/manage energy with low-voltage "energy dashboards."
Whatever the tactic taken, dealers need to have a business plan, take the proper first steps to get fully educated or licensed, understand how to market these new services and develop their equipment margins and labor rates. Lastly, to sell the systems effectively, dealers need to fully understand the tax incentives from the state and federal governments, along with utility rebates, to do the paperwork and explain the ROI to customers.
Just because alternative energy "might be the next big thing" does not necessarily mean you should drop your core business model. Gordon van Zuiden, president of CyberManor in Los Gatos, Calif., is working on his first LEED home and is using it as a learning process to establish his business model for alternative energy.
Alternative Energy Webinar
Three CE Pros explain their alternative energy business models for solar power and wind turbines. Sign up for the live interactive Webinar here. Free for CE Pro VIPs.In the home, he is implementing a complete Control4 and Lifeware solution with a new product called The Energy Detective (TED) to control loads. The system will offer real-time feedback to the homeowner with the ability to alter usage through load shedding, global limits, off-peak scheduling, etc. CyberManor is creating the GUI screens for interaction with TED.
"I see energy management and energy monitoring as our first step," says van Zuiden, adding that he hopes to do even more energy management in 2010. He is working closely with several vendors, including APC and PS Audio, to investigate load shedding for the home.
"We can make an impact on the home's energy usage. It's a practical investment. It's better than adding solar panels to the home. A homeowner starts being energy conscious by saving. It's better to cut usage than add power-producing equipment like solar panels," van Zuiden says.
The next step for CyberManor will be to start installing solar panels, but not yet. "Energy monitoring — over electric gas and water usage — is the more affordable first step for my clients," van Zuiden says.
J. Paul Hughes, owner of HomeBase Systems Inc. in Lincroft, N.J., is taking a similar direction. He is also in the midst of his first LEED home and is tying his energy management and monitoring system into the geothermal HVAC system in the home. The project has also led him to join the U.S. Green Building Council (USGBC) and pursue obtaining his LEED AP (Accredited Professional) designation.
Consumers talked about it, but not many forked out the dough for control systems that monitor and manage their energy costs or for ecological power-generation products. Thus, few integration companies embraced the trend.
Today, there has been a general swelling in public acceptance due to the growing "greening of America" awareness and tax incentives brought to the forefront by President Obama and due to new green technologies that boost efficiency at more affordable prices.
The result is the ripening of the energy management/monitoring/creation market. For many integrators, alternative energy is on the tree, like a fat, juicy peach, ready to be picked.
For many CE pros, the maturation of the market couldn't be coming at a better time, as audio/video and control/automation continue to be commoditized by dramatically falling equipment prices. In different parts of the nation, dealers are already earning new revenues and profits from installing and managing alternative energy systems.
The business models are wide-ranging … some dealers are dropping A/V altogether to concentrate in the field. Others are partnering with electricians and energy specialists and focusing on niche products like wind turbines or solar panels only. Some are getting electrical contracting licenses and LEED (Leadership in Energy & Environmental Design) certification. Still others are moving into the field more cautiously, choosing to only monitor/manage energy with low-voltage "energy dashboards."
Whatever the tactic taken, dealers need to have a business plan, take the proper first steps to get fully educated or licensed, understand how to market these new services and develop their equipment margins and labor rates. Lastly, to sell the systems effectively, dealers need to fully understand the tax incentives from the state and federal governments, along with utility rebates, to do the paperwork and explain the ROI to customers.
Monitoring Energy is First Step
Just because alternative energy "might be the next big thing" does not necessarily mean you should drop your core business model. Gordon van Zuiden, president of CyberManor in Los Gatos, Calif., is working on his first LEED home and is using it as a learning process to establish his business model for alternative energy.
Alternative Energy Webinar
October 14, 2009
Three CE Pros explain their alternative energy business models for solar power and wind turbines. Sign up for the live interactive Webinar here. Free for CE Pro VIPs.
"I see energy management and energy monitoring as our first step," says van Zuiden, adding that he hopes to do even more energy management in 2010. He is working closely with several vendors, including APC and PS Audio, to investigate load shedding for the home.
"We can make an impact on the home's energy usage. It's a practical investment. It's better than adding solar panels to the home. A homeowner starts being energy conscious by saving. It's better to cut usage than add power-producing equipment like solar panels," van Zuiden says.
The next step for CyberManor will be to start installing solar panels, but not yet. "Energy monitoring — over electric gas and water usage — is the more affordable first step for my clients," van Zuiden says.
Focusing on LEED
J. Paul Hughes, owner of HomeBase Systems Inc. in Lincroft, N.J., is taking a similar direction. He is also in the midst of his first LEED home and is tying his energy management and monitoring system into the geothermal HVAC system in the home. The project has also led him to join the U.S. Green Building Council (USGBC) and pursue obtaining his LEED AP (Accredited Professional) designation.
Alternative Energy: What You Need to Know
| 4 Ways to Profit from the Smart Grid Four avenues — demand response, energy management, energy storage and home area networks — to making money. Alternative Energy: What You Need to Know Integrators create business models surrounding energy management and solar panel installations. Demand is strong, margins are OK, and competition is scarce. The Basics of Solar Installations Erdmann Electric diversified into doing solar/PV installations years ago. Here are some basics you should know. How Many LEED Points Can You Earn? Courtney Baker, manager of residential operations at the USGBC, says the number of LEED points an integrator can earn is "murky" right now. Alternative Energy: The Next Frontier Would you rather claim the title of "Mr. Energy" or cede the entire market and its incredible potential to your local utility, electrician or HVAC contractor? Erdmann Electric: Alternative Energy Supplier Ken Erdmann decided his integration company should be an alternative energy supplier. Now, as CEDIA chairman, he wants you to do it, too. Smart Grid: A Trend to Watch in 2010 Consumer Electronics Association hails smart grid's energy efficiency, other green technologies. | |
Subscribe to the CE Pro Newsletter
Read more Business Resources stories
People On the Move: Definitive Technology, Milestone AV, JL Audio, NACE10 Reasons Coax, Not Wireless, Is Future of Video Distribution
3D: Tips to Reignite Consumer Interest
The Home Depot: Your Friendly Neighborhood Distributor?
13 Wire & Cable Tips from the Pros
More in Business Resources
About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
Post a comment