The rising demand for electricity has increased the focus on generation sources that can be deployed quickly and deliver power directly to where it’s being consumed, minimizing reliance on costly and time-intensive transmission infrastructure. With that backdrop, solar energy is increasingly seen as a key component of the energy mix. I recently joined WoodMackenzie’s Interchange Recharged podcast to discuss the dynamics of commercial scale solar, the economic impacts of energy demand and the role of solar in meeting future energy needs.
My wide-ranging conversation with David Banmiller from WoodMac touched on technological advancements, the impact of electrification and how solar companies like Altus are positioned to capitalize on emerging energy trends.
Solar technology has evolved significantly, becoming more affordable and efficient over the years. Once a solar facility is operational, it can produce clean energy reliably for more than 35 years. This long lifespan, coupled with predictably high electricity demand, makes solar energy an essential part of the future energy mix. However, building solar capacity at scale means planning for a very different type of energy future – one where electricity demand is set to surge as more sectors electrify, from transportation to data centers to everyday household devices.
Retail electricity prices have risen consistently over the years, largely due to an aging grid that requires constant upgrading. This trend has not only strained consumer budgets, but it has also underscored the urgent need for new, sustainable sources of power. Solar plays a key role here. Unlike traditional utility-scale systems, our approach is focused on commercial-scale, or distributed, solar. This means we build facilities where power is most needed, such as on large rooftops of warehouses, municipal buildings and other high demand areas. This proximity reduces reliance on long-distance transmission, lowers costs and benefits the local community.
Community Solar is a perfect example of how commercial scale solar can deliver clean energy right where it’s needed. With Community Solar, we can install solar on facilities like industrial buildings, municipal rooftops or even brownfields without an attractive alternative use. The power our systems generate can then be redirected to serve surrounding communities with the benefits of clean and discounted power. This model is powerful because it not only brings renewable energy to local households at lower rates, but it also creates a sustainable business model that benefits everyone involved — the landlord, the community and the grid itself. Currently Altus Power serves more than 30,000 Community Solar subscribers in nine states and we’re working hard to expand that reach.
In our discussion, we also touched on the importance of local partnerships in expanding solar across the country. Altus Power has always been focused on collaborating with real estate owners, developers and municipalities to identify viable sites and navigate the regulatory landscape. The Inflation Reduction Act further supports the U.S. solar supply chain by encouraging domestic production of solar modules and components. In addition, many states have their own pro-renewable policies that foster growth at the local level. These tax incentives not only benefit our business by enhancing access to components but also foster growth in U.S.-based clean energy manufacturing.
The financing landscape, while complex, remains robust for our sector. Thanks to our scale as well as our long and successful track record, we’ve been able to establish strategic partnerships with major financial institutions, insurance companies and pension funds all of whom are supporting our growth initiatives. Long-term, fixed-rate financing from these partners enables us to keep our focus on sustainable growth rather than being hampered by short-term liabilities. This stability is critical for a company like ours, with a mission to deliver reliable clean energy over the long term.
Finally, we’re committed to the long-term goal of helping more businesses, municipalities and communities achieve their net-zero goals through locally generated, clean power. Commercial scale solar is uniquely positioned to support those goals because it aligns energy generation with demand — our systems deliver power during the day when it’s most needed by commercial buildings and other facilities that use significant power. With each new project, we’re contributing to a more resilient grid and cleaner environment.
The energy landscape is rapidly evolving, and with it, our approach to clean energy solutions. Our aim is to continue driving this transformation, one solar project at a time, helping meet local energy demands in a way that benefits customers, communities and the environment. The road ahead is filled with opportunities and we’re excited to lead the way as commercial scale solar becomes an increasingly integral part of the American energy revolution.
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