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With Google, GE and Microsoft all entering the home energy management market, startups shouldn't get too excited: software tools aren't enough to build a business.

If you pay attention to the energy sector, then you've witnessed the recent parade of home energy management software launched by startups, huge IT firms and veteran electrical meter companies. With firms like Microsoft, Google and, most recently, GE entering the home energy management software space, you'd think there was a ton of money to be made by selling this stuff. Not so much: the barrier to building this software is low and giants are already offering the basic tools for free; the window for building a business on, or making substantial money from, these products is quickly shutting.