Abstract
This article examines the current market for customer-sited electric-ity generation, or “self-generation,” activity in California and elsewhereas it relates to energy services companies (ESCOs). Solar photovoltaic(PV) and small combined heat and power (CHP) systems of less than 1MW in commercial and institutional facilities are discussed. Incentiveprograms in several states that are contributing to brisk activity and thefactors that seem most important to closing sales are also presented.While some CHP technologies can be sold on the basis of simple paybackperiod, fuel cells and PV projects typically require more creative ap-proaches. Several of the techniques that are used to justify PV projectsare explained. The old sales adage that you “sell the sizzle, not thesteak,” meaning that you must sell the benefits rather than the attributesof a product, holds true for self-generation (SG) projects, but it is impor-tant to know which attributes are worth selling.
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