Accessing consumer energy data is vital for the energy transition, enabling bill analysis and customized rates.
Companies like Arcadia are unlocking utility data, leading to investments and acquisitions in the energy industry.
Deep dives
Value of Consumer Energy Data for Energy Transition
Accessing and analyzing consumer energy data is crucial for the energy transition, allowing for bill analysis, customized rates for services like EV charging, and understanding customer behavior. Companies are now utilizing platforms like Ark, which unlock utility data for various applications, leading to significant investments and acquisitions in the energy industry.
Challenges of Third-Party Access to Utility Data
Historically, accessing utility data at scale has been challenging, with efforts like Green Button falling short due to poor data availability, service quality, and customer experience. Existing solutions like Electronic Data Interchange lack real-time data and comprehensive visibility, hindering third-party access. The potential lies in simplifying access to rich utility account data that holds crucial information for new energy companies.
Scalable Use Cases for Energy Data
Energy data offers various scalable use cases, such as optimizing community solar allocations based on individual energy needs, underwriting customers efficiently, and providing tailored rate structures for EV charging and storage companies. By leveraging data platforms like Ark, businesses can offer personalized energy solutions, enhancing customer savings and satisfaction.
Future Opportunities in Energy Data Management
The future of home energy and distributed energy resources (DERs) involves managing multiple devices optimally against various rate structures. As data platforms evolve, the focus shifts to whole-home energy optimization, where customer savings are transparent and visible over time. The granularity and accuracy of energy data play a pivotal role in driving trust, sales, and long-term customer engagement in the energy market.
Consumer energy data is vital to the energy transition, especially distributed energy resources (DERs). For example, a rooftop solar company needs consumer energy data to analyze bill savings from a potential solar installation. An electric vehicle (EV) charging company needs it to offer a customer special rates on EV charging.
But that data has long been incredibly difficult to access – available only in PDFs and hard-to-access utility databases – often coming in very different formats and standards.
And yet companies are trying to overcome these challenges by bringing that data into easy-to-use interfaces. Arcadia is one such company. Earlier this month it raised $200 million, an investment that valued the company at $1.5 billion. Yesterday, Arcadia purchased commercial energy-data provider Urjanet.
In this episode, Shayle talks to Arcadia CEO Kiran Bhatraju about how to build a business around consumer energy data and how that data could become a goldmine for DER providers.
A few important disclosures: Shayle’s firm Energy Impact Partners (EIP) is an investor in Arcadia. EIP led the company's Series A and has invested in every round since. Arcadia is a sponsor of this podcast. Kiran is also a friend of Shayle’s, and Shayle is an Arcadia customer.
Shayle and Kiran discuss key questions about consumer data, such as:
What are the most valuable data points? Kiran and Shayle talk about grid carbon intensity, on-time bill payments and more.
What level of fidelity do we need from the data? Do we need precise real-time data to prove savings to customers and support higher DER sales, or will high-level estimates suffice?
Do we need an ever-expanding pool of smart devices, or can we unlock most of the value with a few key devices, such as a hot water heater, heat pump and EV charger?
How do you develop a moat that protects you from competitors in the consumer data space?
What could the future of the DER market look like? Kiran argues that DER providers will shift from selling widgets to selling platforms and packages as whole-home managers.
Plus, Shayle reveals the smartest business idea that he ever turned into reality.
Catalyst is supported by Advanced Energy Economy. AEE is on the front lines of transforming policy that accelerates the move to 100 percent clean energy and electrified transportation in America. To learn how your business can play a key role in transforming policy and expanding markets, visitaee.net/join.
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