Evolution of Alternative Energy Solutions

Solar and Wind alternative energy providers…  Are you ready for the “evolution” of the Solar/Wind Energy Industry?  Do you have a strategy to handle the rapid changes that are approaching?  A lack of preparation could stymie your growth in an exploding industry. Major disruptive changes are on the horizon that will drive prices to unbelievably low levels.

                                                                                                                                     

Current entry costs…       

For years, solar/wind energy providers have played in a highly customized space where wealthy consumers and large power companies were the only buyers of this technology.  Additionally, the technology available forced entry costs higher as elaborately configured setups were required to deliver the energy performance of traditional grids.  However, new technologies have now been developed allowing point-of-consumption installations to become more affordable along with energy rebates being made available from the US government. Currently, pricing for components are now a function of national average rates a consumer pays for power consumption from power grids.

 

Growth is being stymied….

However, this methodology of keeping alternative industry “entry costs” positively correlated with national averages is slowing the growth of this energy option.  As the entry costs of alternative energies have improved over the years, traditional energy options such as Oil & Gas prices have soared to new highs causing utilities cost to climb as well.  The impact of higher fuel costs means more premiums could be attached to alternative energy.  Add to that the cost and trouble of installing a roof-top alternative energy solution and consumers just aren’t interested and therefore demand is kept at extremely low levels.

 

New entrants are changing the industry…

This is all about to change. With the Obama administration offering incentives for alternative energy, several new technologies are being applied to this segment.  As a result, several new players have been attracted to the industry. This new attention is driving traditional costs of the alternative energy segment to new lows and it’s obsolescing the pricing strategy currently utilized by major players in the industry. 

KISMET Strategic Sourcing Partners has initiated a strategy to take advantage of this migration.  On behalf of three manufacturing clients, KISMET has began working with these new technologies and providers on new inverter systems that will reduce the current “per watt” industry costs by 50%.  This new strategy will make alternative energy more affordable, wiping out the existing cost barriers and leading to an explosion in growth.  We are at a tipping point where demand will soar against a backdrop of rapidly dropping cost structures. This trend is going to be very profitable for those companies that are quick enough to take advantage of it.

 

KISMET SSP navigates companies through these changes….

KISMET SSP provides the leadership to assist clients in taking advantage of global electronic trends as well as navigating clients around industry pitfalls. Our mission is to provide our end clients with the best possible development and purchasing solutions for their electronic components, content, and finished assemblies. We exist because we believe that all electronics original equipment manufacturers deserve to have the best possible leverage in a supplier dominated industry.  The industry complexity can lead to pricing, availability and quality frustrations, especially for smaller buyers. Our team is comprised of experienced professionals with advanced degrees in engineering and business management.   Our executive founders have many years of electronic procurement and project management experience and have a proven track record of saving fortune 100 companies millions of dollars.  Our experience includes the management of more than $700M in portfolio spend across the ECM/ODM market. We have spent extensive time developing supply chain solutions in the US, Mexico, China, Japan, Korea, Hungary, and Vietnam. We use this experience and passion to deliver maximum electronic sourcing leverage to our clients.

 Our team is ready to serve you.  Contact us today to set-up a free consultation session to find out how KISMET SSP can make a bottom line difference for your company.                                                                                                          

 

                                                                                                                     Orlando Malone

The Dynamics of Point-of-Consumption Alternative Energy is about to Change Significantly

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Orlando Malone

Managing Partner & Co-founder

KISMET Strategic Sourcing Partners, LLC