Duke Energy is an electrical utility company that has 7.5 million retail customers. In 2016 they had $22.7 billion in operating revenues, and their total assets were $133 billion. Not only do they offer electrical services, but they also made an investment in 2015 in REC Solar Corp and Phoenix Energy Technologies as well as invested in wind and solar generation. The company’s assets total 2,900 MW across 14 states which include 21 wind and 63 solar projects. The new division will capitalize on the solar industry by using existing resources to start Group Solar. Group Solar is community program in which residential and business customers will have access to power by connecting to panels on a solar farm. To determine where the new division stands …show more content…
*Duke Energy believes that renewable services will play an increasingly important role in the transition to cleaner energy. (Duke) *Duke Energy already has a renewables division that primarily acquires, develops, and operates solar throughout the U.S. *REC Solar Corp is a solar installations company Duke Energy has acquired, and they specialize in installations. *Duke energy has been providing solar renewables directly to contractors, so offering directly to the customer would create a lengthy development process. *It has been pointed out that the retail customers for Duke Energy only has 7.5 million retail customers so the new division would have the pressure of leading expansion projects as well. *New customers can be acquired in urban and rural areas. *Build relationships with local government officials. *Will people want to invest in Group Solar at an affordable price? *Competitors may decide to copy group solar and expand. *Solar will become more popular and people will become reliant on it. *Regulatory changes by government and utility companies. (Green,2015) *Evolution of energy storage methods. (Green, …show more content…
Although Duke Energy is well known in several states, they have not expanded into greater territory which causes them to have a limited customer base. The new division would allow for expansion and provide customers with the option of an alternative power source. According to Deloitte’s website, “…many municipalities across the country have the advantage of community choice aggregation (CCA) policies, and community solar has taken off too.” (Motyka, 2017) There may be government-led auction programs that are available to make global diversification attractive for renewable developers. The government already provides incentives, so there may be other possible funding depending on the location of the solar farms. It would be in our best interest to develop relationships with local officials to determine if there are any city or state programs available for new developments to help us cut