HOW S ELF- GENERATION P ROJECTS CAN WORK FOR ESCOS
DOI:
https://doi.org/10.13052/dgaej2156-3306.1911Abstract
This article examines the current market for customer-sited electric-
ity generation, or “self-generation,” activity in California and elsewhere
as it relates to energy services companies (ESCOs). Solar photovoltaic
(PV) and small combined heat and power (CHP) systems of less than 1
MW in commercial and institutional facilities are discussed. Incentive
programs in several states that are contributing to brisk activity and the
factors that seem most important to closing sales are also presented.
While some CHP technologies can be sold on the basis of simple payback
period, fuel cells and PV projects typically require more creative ap-
proaches. Several of the techniques that are used to justify PV projects
are explained. The old sales adage that you “sell the sizzle, not the
steak,” meaning that you must sell the benefits rather than the attributes
of a product, holds true for self-generation (SG) projects, but it is impor-
tant to know which attributes are worth selling.
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