Plug Smart’s Energy Solutions Leverage Larger Brands and Improve Energy Efficiency

Plug Smart provides energy services to help companies implement a broad range of technology and energy solutions on both sides of the utility meter.

The Plug Smart team, while getting their start at OSU’s Center for Automotive Research, is best known for discovering new ways to intelligently network and charge electric vehicles. Their technology helps connect the electric vehicle to the smart grid so users can take advantage of off-peak electric rates allowing utility companies to better manage their peak energy demand.

Dave Zehala, Executive Vice President of Business Development, says that when you are a small company with a green mission, you have to be realistic about your business model. For Plug Smart, that has meant licensing their unique intellectual property and patents with major players like GE, rather than compete with them.

“In a similar way that Intel is an ‘ingredient’ brand for PCs, products using our technology are co-branded with the message ‘powered by Plug Smart,’” said Zehala. “You give up some branding and control, but you can quickly get your product to market.

One thing Plug Smart has done to be successful is to take their patents and innovations and creatively apply them to different industries. One example includes leveraging their intellectual property across multiple channel partners including a Level 1 electric vehicle charging relationship recently announced with Brinks.

Many analysts predict that by 2020, plug-in hybrids will outperform battery electric vehicles and may account for as many as 90 percent of all electric vehicles on the road. In many cases, plug-in hybrids, because of their smaller battery size don’t need a 220V charge, but can easily charge in approximately 4 to 6 hours using a 120 volt charging system.

The 120V system that Plug Smart designed in concert with Brinks uses a “smart socket” approach that can also be installed with wireless capabilities to accept special pricing signals from utility companies. As a result, owners of an electric vehicle can pay as little as 1.25 cents per kwh, as opposed to approximately 9 cents per kwh they would normally pay during peak hours. Zehala hopes by fourth quarter, this “smart socket” will be available from retailers.

On the energy services side of the business, the Plug Smart team also works with large commercial, industrial, and non-profit energy users to find better ways to improve their energy efficiency.  Most recently they worked with the University of Toledo where they provided three primary services. First, they conducted an investment grade audit where energy auditors and engineers found numerous ways to reduce their energy consumption, resulting in $4 million dollars of financial savings per year and a significant reduction in KW hours.

Secondly, they looked for alternative sources of energy. On an 8 acre field, Plug Smart helped the University of Toledo develop one of the largest solar fields in the State of Ohio providing an alternative energy source for their Scott Park Campus. And third, the team is also helping the University reclaim rebate monies from their local utility provider based on energy efficiency projects the University of Toledo has executed going all the way back to 2008.

“As energy costs continue to rise, you have to have a comprehensive energy management strategy in place. Implementing the right projects can reduce a client’s energy consumption by as much as 20 to 30 percent over the course of a few years. We see lots of energy efficiency projects with 2 to 3 year payback periods,” said Zehala.

Plug Smart has been a TechColumbus member company for 8 months and has appreciated access to various stakeholders involved in the early stage company process. “The people part of TechColumbus is the most important,” said Zehala. “TechColumbus provides us access to individuals with experience in all areas of our business and they have really helped us open up some doors that would have otherwise taken us a lot time. These introductions have been an invaluable resource.”

Zehala’s advice to other small, green companies is to pay close attention to the team you bring on board early. “As a small company you have to have the right mix of chemistry and people who won’t let obstacles slow them down,” said Zehala. “This is a tough and fast paced environment for many people to adjust to, so it makes sense to go the extra mile in the recruiting process to make sure you hire the people that will provide the best fit.”