The power of groups: Leveraging a collective approach to clean energy projects

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Oregon and the Northwest are leaders in clean energy. Oregon currently has 1,834 megawatts (MW) of wind projects in operation or under construction and another 3,665 MW in the pipeline. This 5,500 MW total is enough to power about 1.3 million homes. In addition we have significant growth in solar installations and we are one of the top states for energy efficiency.

A recent study by Pew Memorial Trust shows that Oregon is number one in the nation for clean jobs per capita. This has created a great boost for Oregon’s economy with new jobs, tax revenues, investment and royalties for farmers and other land owners. See this report from Renewable Northwest Projects for more information.

With all that to boast about, it might seem greedy to ask how we can achieve more and how we can achieve it more quickly. But economic opportunities and climate science create an imperative to scale up, particularly in the emerging areas of energy productivity and solar.

How do we create more effective markets? How do we get more building owners to maximize energy productivity and efficiency? How can building owners install solar energy efficiently?

A great model is provided by the service industry, which does a pretty good job finding customers, and honing an effective sales and service technique. When a cable operator wants to sell cable TV, they send a salesperson to sweep an entire neighborhood so they can link up lots of houses and use their marketing teams effectively. When insurance companies want to sell health insurance, they go to companies and associations so they can sell to a group of consumers at once. Having a bunch of customers saves time for the salespeople, and also creates economies of scale when it comes to delivering the service.

How does this apply to energy efficiency and solar installations? Buying solar energy or energy efficiency services involves customers who need to be motivated, understand detailed information, arrange financing, and order a complex installation. The supplier needs to make a lot of arrangements too. It is quicker and cheaper (and likely to be higher quality as well) if an installer sells to an entire group, a collective, an aggregation of customers who all want to buy the same service at the same time. Here are some examples of organizations that lined up groups in an efficient way:

Solar installers that lease: SolarCity and other similar companies work on a volume basis. They lease solar systems in a way that allows a building owner to install a solar system with a reduced capital investment. SolarCity owns the system and the building owner pays them a monthly fee. SolarCity aggregates customers. They synchronize financing, manufacturing, delivery and installation. That saves money.

Business Associations: A business association can do much of the legwork for its members. It can provide centralized services (real-time monitoring for example), education, and group purchasing. Meanwhile, an association provides a convenient and very attractive group of customers for service providers. The Northwest Food Processors Association’s energy program is an example of local leadership. Other manufacturing associations are now looking at similar energy opportunities in their industries.

Cities: Cities can use their public role to create “eco districts” that aggregate consumers, financing and delivery. Cities can use their bully pulpit to educate citizens, and can create financing pools, be early adapters for new technologies, and invest in energy infrastructure such as district energy programs. The New Energy Solutions program offers an example of how “pioneer cities” can function to catalyze movement far beyond their traditional role.

Neighborhood Associations: Solarize Portland is a volunteer project led within the Southeast Uplight Neighborhood Association. Energized by the idea of one homeowner, Neighborhood Coalition and Energy Trust have led a group purchasing and planning effort that now includes 335 homes. Because of their bulk buying power, participants saved 25 percent of their purchase price, created a communal financing agreement and learned the basics of solar together.

What other entities could offer bulk purchasing of clean energy services? Employers? Banks? Book groups?

For policy makers, buyers, and sellers who want to promote or purchase clean energy, the benefits of group action is clear. It is intriguing to think about how to promote the power of groups. Are there policies that could be employed? New sales techniques? New methods to link buyers and sellers? Collectivity can help us move faster and cheaper.

Lisa Adatto is the Oregon director for Climate Solutions. Learn more about the organization at www.climatesolutions.org.