Report | 2014

Bridges to New Solar Business Models

By Mathias BellJon CreytsVirginia LacyJames Sherwood
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Utilities, solar companies, and regulators can design and implement components of solar business model strategies today that provide a bridge to the future. These “bridge” business model strategies—including three complementary “building blocks” and discrete next steps—can start to create and capture value, while also providing best practices and lessons learned to inform broader reform efforts.

WHY IT MATTERS

Creating a sustainable long-term distributed photovoltaic (DPV) market will require aligning the interests of utilities, solar companies, technology providers, and customers. Aligning those interests does not mean discarding the business models that have served the solar market until now. Rather, it means enhancing legacy solar business models by creating an expanded value pool—one that makes DPV affordable and accessible to far more customers, bridges beyond individual customer-centric DPV value to include value delivered to the grid and society, and allows the electricity grid’s myriad stakeholders to share in that value.