Parks Points

A significant concern for retail energy providers is revenue diversification. For long-term growth, energy providers realize that they need to move beyond selling a commodity product experiencing eroding margins. Regulated utilities, through non-regulated sister companies, also seek to diversify revenue through new services.

In order to achieve revenue diversification, energy providers are examining a variety of home services to complement energy services to the home. Established services such as HVAC services, home warranty services, security services, and insurance offers represent the most compelling opportunities, as these industries are established. Bundling energy, energy monitoring, and energy management offerings with these established categories provides new value to the consumer and is a basis for competitive differentiation. Newer, less established markets, like solar PV also present an opportunity to diversify revenue.

Due to the fact that many of these adjacent service markets have relatively low penetration, they represent opportunities to create solutions to expand the market, rather than competing for share with established, more experienced rivals.