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Smart Grid Opportunities for 2010
The market for electronics pros is still developing - but you better prepare.
Duke reportedly wants to own the entire residential smart grid system in its area, including everything from the solar panels to the in-home energy monitoring systems and software. That could cut out a guy like Davis, but he isn't intimidated.
"Duke does not want to get into the electrical contractor business," he says. "When [the utilities] get into residential, they're going to have to find people who have experience with that. And they're going to start transferring that work to other companies."
Although small CE firms don't have the manpower to help rollout energy management systems to millions of homes, the smart grid rollouts may well take place in smaller, more manageable stages. Davis, for one, is encouraged that Duke recently selected startup company Narenco to install a 1.2-megawatt solar system.
Paul Nagel, vice president of strategic development at Control4, views the company's EMS 100 energy monitoring system as a gateway for the CE pros to offer more advanced automation and control services in the home. "Many people don't even know it's possible to make all of these things work together in the home, and that's a great opportunity for our dealers," he says. "As a lead generation tool, it's pretty compelling. We can use home automation as a follow-up."
"Some of the California utilities are a little more progressive in their thinking on this," adds Nagel. "They'll provide installs and hand-hold customers at the outset." And over time, installation of these devices shouldn't be too complicated. For now, Control4's EMS 100 is being marketed exclusively to utilities, but could also become available in retail outlets.
Still, opportunities should exist for savvy CE firms. Nagel likens it to the many truck rolls that still occur to get wireless WiFi routers working in homes. "In winter, if that thermostat isn't working, who is going to do the truck roll? It could happen in a number of different ways. We're looking at our 1,500 dealers, Best Buy has the Geek Squad. …"
In many cases, having an electrical contractors license will serve you far better than just being a low-voltage installer, for it allows you to install more smart-grid-related systems inside the home and interface with high-voltage systems. If high-voltage isn't your thing, consider partnering with a licensed electrical contractor who also has smart grid ambitions.
"For people who want to make a living of this and have a passion for it, [the smart grid] is going to be a far bigger market than just the CE stuff," Davis adds. That is, if you start marketing your services now.
"Duke does not want to get into the electrical contractor business," he says. "When [the utilities] get into residential, they're going to have to find people who have experience with that. And they're going to start transferring that work to other companies."
Rollout of Energy Management Systems
Although small CE firms don't have the manpower to help rollout energy management systems to millions of homes, the smart grid rollouts may well take place in smaller, more manageable stages. Davis, for one, is encouraged that Duke recently selected startup company Narenco to install a 1.2-megawatt solar system.
Paul Nagel, vice president of strategic development at Control4, views the company's EMS 100 energy monitoring system as a gateway for the CE pros to offer more advanced automation and control services in the home. "Many people don't even know it's possible to make all of these things work together in the home, and that's a great opportunity for our dealers," he says. "As a lead generation tool, it's pretty compelling. We can use home automation as a follow-up."
"Some of the California utilities are a little more progressive in their thinking on this," adds Nagel. "They'll provide installs and hand-hold customers at the outset." And over time, installation of these devices shouldn't be too complicated. For now, Control4's EMS 100 is being marketed exclusively to utilities, but could also become available in retail outlets.
Still, opportunities should exist for savvy CE firms. Nagel likens it to the many truck rolls that still occur to get wireless WiFi routers working in homes. "In winter, if that thermostat isn't working, who is going to do the truck roll? It could happen in a number of different ways. We're looking at our 1,500 dealers, Best Buy has the Geek Squad. …"
In many cases, having an electrical contractors license will serve you far better than just being a low-voltage installer, for it allows you to install more smart-grid-related systems inside the home and interface with high-voltage systems. If high-voltage isn't your thing, consider partnering with a licensed electrical contractor who also has smart grid ambitions.
"For people who want to make a living of this and have a passion for it, [the smart grid] is going to be a far bigger market than just the CE stuff," Davis adds. That is, if you start marketing your services now.
2010 State of the Industry
 | 2010 State of the Industry Report The industry is still ticking after taking a licking. Revenues fell 51 percent in 2009, according to the CE Pro Readership Survey. Webinar: 2010 State of the Industry Join CE Pro editor Jason Knott and his special guests as they explain how the CE industry fared in 2009 and what the outlook is for 2010. 3D TV 101 3D is heading for the home, finally ready to crash into your clients' living rooms. Here's a primer on 3D TV. Digital Media: Being a Content Provider Black boxes and TVs are spinning the Web, so you better get connected. Smart Grid Opportunities for 2010 The market for electronics pros is still developing - but you better prepare. How to Attack the Middle Market CE pros are adjusting to a new market paradigm that emphasizes product demonstrations and affordable solutions. Industry Embracing Commercial, Retrofit Markets Once "fat and happy" on the new-construction gravy train, CE pros are now feeding off the commercial and retrofit markets. | |
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News · Business Resources · Energy Management · Energy Management · Smart Grid ·About the Author
Steven Castle is a writer, editor, and humorist who recently completed Filthy Rich Things, a savage satire on our thirst for success and wealth. He is Electronic House's senior editor and co-founder of GreenTech Advocates.
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