In 2006, PG&E announced a program where it would provide IT customers cash incentives to replace older equipment with more energy efficient gear. PG&E has dedicated human resources, substantial intellectual property and cash reserves to accommodate the program which runs through 2008 and will be extended beyond.
As of April 10th, 2008, only one storage vendor, Copan, has had its technology qualified for the program by PG&E. As of September 2008, only one other, 3PAR has applied for and received qualification for its storage technology. To date, only California State University East Bay has been approved for a PG&E storage incentive. Outside of storage, VMware has set an excellent example of a company that is committed to this program by dedicating resources to get customers rebate checks.
This raises two obvious and important questions for the storage industry: 1) Why are more vendors' technologies not qualified for the PG&E program and 2) Why are more storage customers not receiving rebate checks? The answers are multi-dimensional but essentially boil down to the fact that the qualification process, while conceptually appealing and seemingly simple, requires considerable effort on the part of vendors. As well, receiving a rebate check, while not overly complicated has intrusions to the customer that are often perceived as not worth the effort and represent an impediment to the sales motion of storage vendors.
PG&E is committed to simplifying the process to continue to provide forward momentum for the program. As well, the utility is making available its intellectual property to other utilities in the U.S. interested in providing a similar service to clients. However progress is slow and vendors need to be more vigilant in pursuing programs like PG&E's.
Action Item: Ultimately, participation in programs like PG&E's that provide cash incentives to reduce the energy bill, are proof of a vendor's commitment to giving more than just lip service to green IT. Users should increasingly evaluate vendor performance with such programs as evidence of a supplier's true commitment to green.
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