UBER STAR:

Over the past two decades, there have been many attempts to reform the electric utility market. The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. But recent technological advances and new business models are now allowing nimble players to compete and provide consumers with cost-saving alternatives. With the rise of distributed forms of energy, such as rooftop solar power, and batteries, it's become much more feasible to match individual demand for electricity with on-site production.

Distributed energy systems are basically comprised of small-scale energy-generating devices (the most common example being solar panels) that allow for electricity to be produced on-site and consumed immediately, without drawing from the local electrical grid. Recent developments, such as falling solar panel prices and increases in efficiency rates (the rate at which sunlight hitting panels is turned into usable energy), have made distributed energy increasingly economical, while new business models and financing methods have made it more accessible. [...]

In the case of distributed energy, various financing options let consumers save in a number of ways. They are offered either solar leases (leasing the panel and its energy for a fixed periodic payment) from a solar company, power purchase agreements (they purchase each unit of electricity produced by the panel at an agreed upon rate), or solar loans (the consumer, rather than the service provider, owns the panel; effectively a solar panel mortgage). In each case, the cost per unit of electricity is not only cheaper but more stable when compared to rates charged by utilities.

With the introduction of batteries that can store electricity, such as Tesla's, solar energy's value proposition may well increase. Batteries can store excess solar energy produced in the middle of the day when the sun is strongest and then release the energy at peak price hours. While this isn't quite as cost-effective for the residential sector yet, due to battery costs and regulatory issues, batteries are already being used in commercial and industrial sectors, where extra charges for using energy during high-demand periods can make up 30% of electric bills. Instead, batteries can pull electricity from the grid when prices are low, like in the middle of the night, and store it. That electricity can then be consumed later when energy is more expensive and demand charges come into play.

New energy management software can also help identify consumption inefficiency and automate electricity usage when necessary by collecting site-specific energy data. But before distributed energy can make a greater impact, more comprehensive energy management platforms must be developed. Ultimately, Internet of the Things software could optimize the interactions between a distributed energy system comprised of solar panels, batteries, and commercial or residential buildings' energy management systems, based on real-time data from each component -- much the way Uber's platform oversees and coordinates a ride by transmitting and analyzing data from mobile devices.

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