Growing government support and mandates are largest drivers for C&I DER adoption
BOULDER, Colo., April 16, 2024 /PRNewswire/ — A new report from Guidehouse Insights assesses the global market for distributed energy resources (DER) in commercial and industrial (C&I) buildings.
As the threat of the climate change becomes a larger concern in the minds of decision makers around the world, many nations have passed large spending packages in the last three years focused on the manufacture and deployment of DER technologies. According to a new report from Guidehouse Insights, annual revenues for the global DER for C&I market are expected to grow from $146.4 billion in 2024 to $321.2 billion by 2033 at a compound annual growth rate (CAGR) of 9.1%.
“With mounting internal and external pressure to decarbonize, as well as an increasingly positive average ROI, DER in the C&I space are expected to see considerable growth over the next decade,” says Grant Samms, research analyst with Guidehouse Insights. “As operators of commercial and industrial sites continue to invest in the benefits of DER resilience and sustainability, the latest wave of government funding will strengthen the case for their adoption of DER.”
Even so, the needs of C&I sites vary widely and common DER deployment models may not be directly applicable. Concerns over potential downtime, safety of hazardous materials, and higher energy capacity requirements mean that C&I plant managers must sometimes be creative to capitalize on DER.
Growing government support and mandates are the largest driver for C&I DER adoption. Aside from regulatory requirements, companies are eager to adopt clean DER to help themselves meet internal climate goals. Significant financial reasons also exist for these adoptions, such as lower energy costs and the ability to participate in grid services like load management. While these forces are strong, the sector does have significant barriers to deployment including capacity needs that are higher than most DER can meet, fire safety issues, and low awareness of DER applicability, according to the report.
The report, Distributed Energy Resources in Commercial and Industrial Buildings, examines the global market for DER technologies in industrial and commercial buildings, including solar PV, generator sets, distributed energy storage systems, and EV charging systems. It analyzes current market issues, technology trends, drivers, barriers, and the policy landscape. Market analyses for revenue and capacity are segmented by technology, vertical, and region, and extend through 2033. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Distributed Energy Resources in Commercial and Industrial Buildings, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]
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SOURCE Guidehouse Insights
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