The microgrid can help to achieve cost savings in a number of ways. One of these is limiting the amount of energy consumed, through a smart energy system which makes energy consumption far more efficient. It will also help to make the system more reliable, thereby preventing power outages. Currently, consumers and business in the US pay at least $150 billion per year in costs as a result of power outages.
The initial plan may also identify alternative financing sources and modernization opportunities that act in turn to reduce the costs usually associated with long-term infrastructure improvement. Finally, local generation improves energy generation by reducing the distance that energy has to travel from the generator to the point of need.
Microgrids can generate revenue by helping communities and businesses to provide energy services to the wider grid. An example of this is the Feed-in Tariff that many countries have introduced in which a payment is paid for excess electricity exported to the national grid.