In the Know: Entering propane power generation

In the Know is a monthly partnership between LP Gas and Propane Resources. This month, Tammy Day outlines a strategy to expand a business into propane power generation.

QUESTION: How would you advise propane retailers who want to gain customers in the power generation market?

ANSWER: If you’ve entertained the possibility of entering into the propane power generation market, there are a few things to consider.

Before jumping in, put some thought into creating a solid plan to facilitate your success. Expanding your business’s offerings into the power generation market can be lucrative. Consider the following strategies before you begin:

1. Educate your customers: Many potential customers may not be aware of the benefits of propane for power generation. Educate them on the advantages:

• Lower emissions compared to diesel or gasoline.
• Cost-effectiveness.
• Reliability.
• Longer shelf life and less maintenance than diesel and gasoline generators.
• Quiet operation.
• Incentives, tax credits or rebates are often available for the installation and use of propane generators.

2. Highlight environmental benefits: Propane is a cleaner-burning fuel compared to many alternatives, emitting lower levels of greenhouse gases and pollutants. Emphasize these environmental benefits to appeal to environmentally conscious consumers and businesses.

3. Target specific industries: Identify industries where propane power generation is particularly advantageous, such as agriculture for farm operations, hospitality such as hotels and resorts and remote locations where grid power is unreliable or unavailable.

4. Offer flexible solutions: Provide a range of propane power generation solutions tailored to different customer needs, whether it’s small-scale generators for residential use or larger systems for commercial and industrial applications.

5. Provide financial incentives: Offer financial incentives such as rebates, discounts or financing options to encourage businesses and individuals to adopt propane power generation solutions.

6. Build partnerships: Collaborate with equipment manufacturers, installers and industry associations to strengthen your market position and credibility in the propane power generation sector.

7. Customer support and service: Ensure excellent customer support and service. Propane power generation systems require maintenance and occasional service; offering reliable support can build trust and loyalty among customers.

8. Demonstrate reliability: Highlight the reliability of propane as a fuel source for power generation, particularly in emergencies and during times of grid instability.

9. Regulatory awareness: Stay informed about local regulations and incentives related to propane power generation. This knowledge can help you guide customers through regulatory requirements and leverage available incentives.

10. Marketing and awareness campaigns: Launch targeted marketing campaigns emphasizing the benefits of propane for power generation through digital marketing, industry publications, trade shows and community events.

Propane power generators offer a reliable, cost-effective and environmentally friendly alternative to traditional gasoline and diesel generators, making propane a preferred choice for many consumers and businesses seeking backup power solutions. By focusing on these strategies, propane retailers can effectively attract and retain customers in the power generation market, demonstrating the value and versatility of propane as a reliable energy solution.

Tammy Day is director of marketing and communications at Propane Resources. She can be reached at 888-739-6732 or tammyd@propaneresources.com.