Are microgrids a viable investment option?

Reference 6 outlines a similar problem in the Indian energy network, where without external sources of funding the growth of renewables (and by extension microgrids) is extremely limited. Several works have discussed the benefits of microgrids, promising business models, and novel financing strategies providing many avenues for potential investors.

How do you finance a microgrid project?

Reference 8 also discusses project financing in terms of microgrid business models, finding that third party financing (i.e., private debt financing) of a microgrid project which pays itself back with energy savings and resilience is the most straightforward approach.

Can a microgrid project save money?

In terms of the studied microgrid's annual cost ( Fig. 3 ), regardless of financing terms, the project is shown to produce cost savings over the reference case. However, only a limited number of scenarios provide projected savings greater than the equipment lifetime financing.

What makes a good microgrid project?

Simply put, from an investment perspective, a microgrid project must be well understood, come from standard design practices, and deliver worthwhile financial returns. The literature on microgrid design has recognized this.

What is a microgrid & why should you care?

Microgrids are small-scale power systems that have the potential to revolutionize the way we generate, store, and distribute energy. They offer a flexible and scalable solution that can provide communities and businesses with a more reliable, efficient, and sustainable source of energy.

Do microgrid design models provide sufficient return on investment (ROI)?

Investors need to see that a project provides sufficient return on investment (ROI) to offer funding. However, microgrid design models optimize around the cost of technology purchases to provide potential returns, where solutions are wholly dependent on input assumptions.