4Q 2020

Analyst Insight: Leading Microgrid Business Model Analysis

Global Microgrid Deployment Insights

The microgrid market continues to evolve in terms of distributed energy resources (DER) deployments, applications, and business models. This Analyst Insight report focuses on the latter, reviewing business model market drivers and barriers, regional preferences, and longer-term global trends. As key components of microgrids become increasingly commoditized—such as solar PV panels and energy storage devices—the focus of new innovations is shifting to software controls and creative financing business models that reduce upfront costs for customers.

This Analyst Insight report focuses on business model trends, including energy as a service (EaaS), a business model that Guidehouse Insights believes will foster tremendous innovation. Pioneered in the remote microgrid space with creative mobile money options, EaaS is being offered for grid-tied projects with new forms of power purchase agreements. Other business models represented include traditional owner financing, government funding, and utility rate-basing. Each business model offers unique benefits and drawbacks.

This Analyst Insight report maps and discusses emerging business models being deployed for microgrid systems regionally and worldwide. It covers key market barriers and drivers and other leading trends by region and market segment. The underlying Tracker is updated on a continual basis, with the next publication scheduled for 1Q 2021.
Pages 11
Tables | Charts | Figures 5
  • How does the regulatory environment for microgrids vary by global region?
  • Which business models dominate each regional microgrid market?
  • How much are vendors spending on microgrid controls?
  • What are key market drivers and barriers affecting microgrid business models?
  • How do microgrid business model market shares compare between project number and total capacity?
  • Microgrid developers
  • Microgrid controls providers
  • Microgrid investors
  • Energy storage purveyors
  • Distribution utilities
  • C&I enterprises
  • Government agencies
  • Federal and state regulators
  • Smart grid software firms
  • Investor community



Executive Summary

Market Inflection Trends

Business Model Market Drivers and Barriers

Global Microgrid Business Model Snapshot

Regional Market Overview

Key Recommendations

Additional Resources



  • Microgrid Deployment Growth Potential, World Markets
  • Business Model Market Drivers and Barriers
  • Microgrid Business Models by Project Number Market Share, World Markets: 3Q 2020
  • Microgrid Business Model Vendors by Capacity Market Share, World Markets: 3Q 2020
  • Cumulative Identified Business Model Capacity by Region, World Markets: 3Q 2020