We should be further along with the consumer adoption of renewable energy. Solar energy has long since emerged as the lowest cost per kWh power source, making it a key puzzle piece in our transition to clean energy. Added to that, the Inflation Reduction Act of 2022 was passed to significantly incentivize private investment into clean energy infrastructure and the domestic production of solar panels and battery storage.
Opportunity lies in front of us for solar and other renewable energy sources to become a ubiquitous method for powering our lives – the very definition of the term “Utility.” A “New Utility” is exactly what we need in order to transition to a clean energy future.
Back in the 1800s, it only took a 5% adoption rate for electric lightbulbs to become the norm in American homes. Today, far less than 5% of American households are equipped with solar electricity.
How Do We Reach the Clean Energy Tipping Point?
Technology is key to unlocking the mass adoption of clean energy. There are many ways that energy intelligence data and the use of AI can accelerate the energy transition. AI modeling can illustrate where it is economically viable to deploy clean energy projects, reducing financial risk for investors and increasing the likelihood of project prioritization.
Energy intelligence data, like mapping the solar output potential of each individual rooftop, provides the lifeblood of informed decision-making for businesses and homeowners alike. Analyzing the solar potential of entire communities taken together can help identify where clean energy can be deployed in “clusters” for maximum impact, and to serve as a virtual power plant that utility companies could tap into when the larger grid is in duress.
Why Energy Intelligence Is Critical to the Success of the IRA
Policy, paired with technology, will really supercharge the energy transition. We already have incredible technological tools, and the passage of the Inflation Reduction Act (IRA) of 2022 created huge opportunities for the expansion of clean energy. The use of energy intelligence data is critical to fully realize these opportunities.
The IRA is the largest piece of policy ever passed to boost the clean energy sector and combat climate change. An estimated two-thirds of the subsidy provided by the IRA comes in the form of tax credits to spur private investments in clean energy projects. These credits lower the investment costs of clean energy projects to make them more competitive with fossil fuels. The IRA also encourages the development of new clean energy technologies, including the funding of research and innovation programs, which can aid scientific breakthroughs and create new jobs in the clean energy manufacturing sector.
There are many ways energy intelligence can help businesses and investors fully leverage the opportunities made available to them by the IRA. For example, data can:
- Identify the best locations and methods for generating clean electricity, calculating the potential and performance of renewable energy resources across different regions and climates.
- Provide intelligence on the energy consumption patterns and preferences of different consumers and sectors. This knowledge can optimize demand and supply of clean energy, and inform effective incentives for adoption.
- Inform best practices and standards for integrating clean energy into the existing grid and infrastructure, and help ensure the safety, reliability, and resilience of the clean energy system.
Areas of Urgency in the Energy Transition
The urgency of the energy transition requires us to think beyond individual household installations. Larger-scale solar projects and targeted deployment of solar across communities are pivotal in our quest for a sustainable future.
The urgency for data solutions is particularly evident across three key areas:
- Reducing the overhead costs of solar electric design: With energy intelligence data, companies can fine-tune the design and configuration of solar systems more quickly and cheaply. The reduction of these overhead costs can be passed onto consumers with the goal of maximizing energy production while reducing cost-per-kilowatt-hour.
- Identifying high-potential locations: Urgency exists in prioritizing regions with abundant solar resources. We cannot afford to squander opportunities; we must expand clean energy infrastructure where it can have the most significant and immediate impact.
- Tailoring financing and incentive programs: Urgency in the need to develop customized financing and incentive programs, aligned with expected energy savings and consumer benefits, boosted by incentives. We cannot wait for the organic adoption of clean energy; we must incentivize it now.
This urgency of need requires urgency of solutions. The good news is that we already have the technology and energy intelligence data to push us past the tipping point and into a clean energy future. The disruption and electrification of other industries is well underway: 8% of all new cars sold in the U.S. in 2022 were electric vehicles, once a space-age idea.
If business leaders and policymakers can effectively harness energy intelligence to build clean energy infrastructure and increase homeowner understanding, together we can build a New Utility that is cleaner and more resilient for all.