The age of renewables is here, and with the onset of a more sustainable future comes much opportunity. In fact, for energy professionals in the retail energy industry, there is a greater opportunity than ever. In this article, we will break down three renewable energy opportunities for energy brokers.
First Things First
Retail energy brokers run the gamut. There are residential energy brokers, commercial energy brokers, and large industrial energy consultants. Becoming an energy broker is not easy. It takes lots of knowledge and industry expertise to be able to make the right recommendations to customers. Energy brokers traditionally act as middle-men between retail energy suppliers and end-user customers in deregulated energy markets.
Prior to the renewable boom, energy broker traditionally were focused on lower-cost brown power. In fact, most energy brokers did not care about the source of the power, but rather its price. Lower cost electricity allowed brokers to make more margin and offer more savings to their customers.
The Dawn of Renewables
Over the last decade, however, renewable energy, like wind and solar, have become more and more prominent. In fact, many commercial and industrial customers are focused on becoming more sustainable and environmentally friendly for several reasons. The ages of finding the cheapest brown power are over. A mix of sustainability and price is the new norm. With that, energy brokers must pivot to offer their customers what they desire or risk becoming a dinosaur.
Now, there are several new opportunities that energy brokers can explore to help their customers become more green. We will outline the top 3 renewable opportunities for electric brokers below…
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Community Solar
Community solar is a foreign concept to most. It involves the practice of a solar developer constructing a solar farm in a community and then selling that power to the local residents. In fact, the developers must find customers to subscribe to their projects in order to get paid by the utility company.
In these instances, the developers need customers, whether they are residential or commercial, to subscribe or the projects cannot be built. Energy brokers can make deals with community solar developers to help fill their customer requirements and earn handsome commissions for doing so.
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Traditional Solar
Roof top solar is becoming more and more attractive to large commercial customers. Years ago, solar prices were much higher than local utility prices and it was hard to offer savings without some sort of extra financial incentive. Recently, with rising energy prices, roof top solar can be very attractive to a customer looking to cut costs or lock-in costs for a long period of time.
Energy brokers can position themselves to represent solar developers in order to sell these systems to their customers. In some cases, the energy broker can get paid from his customer’s usage in a Power Purchase Agreement scenario.
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ESG Consulting
Many large organizations are looking to become environmentally friendly by increasing their ESG scores. ESG stands for Environmental, Social, and Governance and it is a measurement of how well an organization is addressing these issues.
While the Social and Governance aspects might not apply, energy broker can help their customers become more environmentally conscious by helping them implement various renewable energy solutions. Many organizations do not know where to turn, so a seasoned energy broker can charge a consulting fee for his guidance on these issues.
All in all, there are many opportunities for energy brokers to prosper in the new renewable economy. Many brokers are positioned well to take advantage of their existing customer bases and help them enter the renewable age. Becoming an energy broker is also a great career choice for those looking to participate in this energy revolution.
