Clean Energy Explorer: Laying the Groundwork for Clean Energy Integration

PowerFlex

If you’re a business interested in clean energy initiatives and researching potential solutions, then you have taken the first step in the Clean Energy Maturity Model — a framework that helps organizations assess and increase their level of clean energy integration.

You’re currently at the Explorer stage, in that you’re just beginning to make sense of clean energy options like solar and electric vehicle charging, their benefits, and financial pathways to incorporating them into your business. Let’s talk more about this pivotal stage in your company’s evolution and how you can plot a course for success.

Key Characteristics of an Explorer Organization

What defines an Explorer organization in terms of clean energy planning and implementation? These key characteristics can help you identify if your company is in fact at the Explorer stage, as well as shine a light on some important considerations.

1. Awareness Mixed With Inaction

  • Interested in clean energy
  • Recognizes risks associated with grid unreliability and price volatility
  • No clean energy assets installed on site yet

An Explorer company is interested in clean energy, with awareness of the potential risks and opportunities involved. They are ready to find solutions to unpredictable electricity prices and an unreliable power grid. However, no specific action has been taken to implement clean energy assets or solutions.

2. Strong Motivations for Sustainability

  • Rising energy costs
  • Regulatory pressures
  • Desire for improved public perception

Explorers are motivated to choose sustainability because of increasing external pressures. These include rising energy costs, looming regulatory requirements to meet sustainability standards, and wanting to improve brand image by becoming more environmentally responsible. But these are still only motivations — not yet actions.

3. Expanding Understanding With Research

  • Exploring available clean energy solutions
  • Identifying internal and external funding options

An Explorer has begun researching and comparing available clean energy solutions and looking for the best ones for their business. They may have also started identifying internal budget and external funding options for clean energy implementation.

Assessment Across Eight Core Areas

The Clean Energy Maturity Model measures a company's maturity based on eight core assessment areas.  Your company's position in these eight areas can help further understand whether you are an Explorer and how close you are to becoming an Adopter, the second stage of clean energy maturity.

  1. Strategy
    • You understand that clean energy should play a role in your organizational goals, and you’ve gone through the early stages of aligning business operations with sustainability objectives. However, exact strategies may not yet be in place or proposed.
  2. Financial Considerations
    • Your organization has limited knowledge of how clean energy might provide revenue potential for the company. You are thinking about clean energy only in terms of sustainability goals, power costs, and regulatory requirements. However, you may have begun the process of budget allocation for clean energy initiatives.
  3. Funding
    • You expect to rely heavily on external funding such as federal tax credits and state initiatives to fund your initial clean energy pilot programs. Your company does not yet have a significant internal budget to dedicate to clean energy implementation.
  4. Technology
    • Your business does not have any clean energy infrastructure, assets, or energy management software. While you may have explored options, no clean technologies have been installed.
  5. Advocacy
    • You are still in the phase of seeking third-party information to help you establish a business justification for clean energy. You are building internal support for sustainability and may bring in external experts to persuade leadership and stakeholders to greenlight pilot projects.
  6. Organization & Culture
    • You do not yet have a dedicated sustainability team who has been assigned to plan and implement sustainability initiatives. There is likely little internal expertise to lead clean energy projects, and you are reliant on outside consultants and experts.
  7. Environmental Impact
    • Your business is still a net carbon emitter. You likely do not have any emissions tracking or clearly defined carbon reduction goals yet. You may be aware of the need for such goals but lack the internal expertise to define a clear and achievable plan to significantly reduce overall emissions.
  8. Business Operations
    • Your business operations may be vulnerable to energy price volatility and looming regulatory compliance issues. Awareness of that vulnerability may play an important role in your motivation toward clean energy initiatives.

Challenges for Explorer Organizations

Explorer organizations are aware of the need for clean energy implementation but typically have difficulty justifying the initial investments. It is common for an Explorer’s staff to lack internal expertise on clean energy implementation and, therefore, struggle to navigate the complex landscape of clean energy options and vendors.

Fortunately, the Clean Energy Maturity Model can provide a clear path to guide an Explorer business toward becoming a clean energy Adopter.

Steps to Transition to Level 2: Adopter

  1. Educate Decision-Makers
    • Start by getting the right information in front of your decision-makers. Leverage industry resources to build a strong business case for clean energy implementation. Be sure to highlight the potential for financial, operational, and environmental benefits should the company commit to clean energy goals.
  2. Secure Funding
    • Get the ball rolling on building an internal budget and supplement those funds with external clean energy incentives. Access funding opportunities such as clean energy grants and tax credits that can significantly increase your effective budget and/or reduce your initial implementation costs.
  3. Plan a Pilot Program
    • The most important step in becoming an Adopter is to launch a pilot program. Choose a specific clean energy asset like a solar array or EV chargers, then define clear goals and success metrics that fit within your budget and initial project scope.
  4. Build Partnerships
    • Lastly, cultivate a connection with vendors and third-party consultants to design and implement your clean energy projects. Bring in experts and build partnerships with vendors to get the best advice and prices.

PowerFlex Helps You Go From Explorer to Adopter

Explorer organizations have taken the important first step in recognizing areas of opportunity in clean energy implementation. The next step is to put your research to work and transition to an actionable plan for clean energy adoption and launch your first pilot program. Success with the pilot program will make further investment easier to achieve.You have begun the journey, but you don't have to embark alone. Leverage PowerFlex's resources and expertise as your cleantech solutions partner to help you get to the next stage of clean energy maturity. Ready to get started? Contact us today.