Duke Energy's plug-in power tech slashes small business energy costs effortlessly
A novel approach to energy management could aid small businesses in reducing costs with minimal effort. Duke Energy, a US-based company, provides software that transforms solar panels, electric vehicles, and batteries into a single distributed energy resource (DER). These systems can then function as part of a Virtual Power Plant (VPP), potentially forming large-scale networks capable of gigawatt-level output.
Traditional DER installations, like a Tesla Powerwall, often necessitate expensive electrical upgrades. Soft costs alone—such as permits, inspections, and labor—can comprise over half the total price, making them inaccessible for many small businesses with tight budgets.
For smaller setups, Duke Energy's plug-in DERs aim to simplify the process. CEO James McGinniss compares connecting one to 'putting on a t-shirt.' The company's software integrates various power sources into a unified system, allowing them to function together as a VPP. If widely adopted, these networks could reach gigawatt capacity.
McGinniss argues that plug-in DERs are already compliant with existing electrical codes and pose no safety risks. He emphasizes their potential for small businesses, where 'permissionless' installations could significantly reduce costs. Commercial users might see installation expenses drop to less than 10% of the system's total cost, while residential setups could approach zero. Businesses could also save around $50 per month for every kilowatt of peak demand they cut.
Despite the promise, challenges persist. Regulatory hurdles and inconsistent safety standards have led to a fragmented market. Still, sectors like retail and food services—such as a Brooklyn bagel shop with multiple locations—stand to gain. Even small reductions in demand charges could make a difference for businesses operating on thin margins.
Duke Energy's plug-in DERs offer a low-cost method for small businesses to manage energy use and reduce bills. If adopted widely, these systems could form vast VPP networks while avoiding the high costs of traditional installations. However, regulatory and market barriers will need to be addressed for broader success.
