Energy Efficiency Report: Key Sector TrendsJune 09, 2014 Posted by: Matt Maloney
SVB’s Energy Efficiency Report provides perspective on the key players and most compelling trends in the sector.
Our findings include:
Pricing: Consumers don’t like to “spend to save.” Consumer adoption is expected to increase as the price of energy efficient products falls (most likely through commoditization, such as LED lighting). Short Payback Periods: Corporations recognize the financial benefit of reducing their energy footprint. Efficiency improvements with short payback periods and various incentives improve the bottom line. Large TAM (Total Addressable Market): Large addressable markets, lower capital requirements, and ability to scale quickly, particularly in energy management software plays, continue to drive investor interest in the space. Innovative Business Models: The partnership model is viewed as attractive, particularly in the “battle for the home.” Google/Nest, Vivint Solar (home protection/residential solar) etc. Financing: Customer financing options are appealing in both commercial and residential markets; customers avoid upfront cost and third-party financiers monetize tax credits while securitizing annuity streams. However, financing...Read More