BUSINESS CONCEPTS OF SOLAR PHOTOVOLTAIC ELECTRICITY GENERATION FOR SYSTEMS INTEGRATORS

Abstract

The world's energy systems are changing at an accelerating pace. The drivers for the development are constantly increasing the demand for energy, the growing population and the economic output. Whereas, the global challenges of the energy sector have enabled the development of new technologies for energy production in accordance with the principles of sustainable development. Electricity production is emerging as the most popular form of renewable energy.

In this thesis, the business concepts of solar photovoltaic electricity generation for systems integrators are discussed. The theoretical framework referred to in this paper is servitization. The study has examined the theory and assessed what kind of business concepts and value creation models exists in scientific literature in service context currently. The practical part of the study was conducted as a case study. Two well-known Finnish energy companies have been selected for this research, which have recently moved to commercialization of solar energy systems as part of their current business.

The study suggests that solar photovoltaic is no longer an actual “green statement” but has become an economically fully competitive energy solution with traditional power generation solutions. According to the study, the broad market penetration of photovoltaics among other renewables, has significantly changed the dynamics of the electricity market. Renewable energy systems replace basic power generation solutions and the need for so-called “reserve power” increases. The reserve power must respond very quickly to the fluctuations in production and the consumption of energy. It must be flexible and reactive. In the North and South of the globe, photovoltaic power cannot replace the current base power solution, but it will be installed to increase energy self- sufficiency.