Microgrids are too expensive, the renewable energy component is not dependable and microgrids are no better than backup generators. These are the top three microgrid misconceptions that prevent businesses from installing microgrids, say providers of the technology.
In addition, customers mistakenly believe that the technology is immature and complex. And they say microgrids aren’t flexible enough. Without question, the number one misconception is about high cost, and microgrid providers provide plenty of fodder to shoot down that idea. Sean McEvoy, senior vice president of business development at Veritone, said, “The cost of renewables, especially solar and battery power, has plummeted to the point where microgrid projects are now feasible and make financial sense. Beyond the cost of the equipment itself, though, consider the cost of doing nothing. Power outages and interruptions cost Americans at least $150 billion each year.”
Tony Soverns, chief technology officer at Go Electric, agreed that equipment costs have decreased dramatically in the last few years and are expected to drop rapidly as more standardized solutions become available. Lower total costs will open up new markets, he said.
Microgrid misconceptions about compensation
In addition, the many incentives available for energy storage and renewables help defray the cost, said Amanda Kabak, chief technology officer and principal architect for CleanSpark. They […]