Where Is The Solar Industry Heading?
Companies like SunEdison have forged new ground in the solar energy industry by creating a compelling business model I have heard called "solar outsourcing". SunEdison is working with businesses and utilities - they don't work at the residential consumer level. SunEdison owns and installs solar systems on business rooftops and sells the electricity produced by the system to the business owner. This outsourcing model has eliminated the barrier to entry: high initial costs. In addition, the business locks in a rate for power in the years ahead. SunEdison, meanwhile, acts as an independent power generator and grows revenue incrementally. At least, that's how I understand it ...
In recent months there has been a lot of talk about CitizenRE, a company that proposes to bring the "solar outsourcing" business model to the residential consumer. The idea is certainly worth looking at, but to those deeply involved in the solar business, it's not making sense. This article, written by Jeff Wolfe of groSolar, is an essential read for anyone wondering whether CitizenRE is a ponzi scheme or a real company with real prospects. The founders of CitizenRE have joined the comments on that page ... but they have not convinced experts like Wolfe that the model can succeed. Go read it ...
CitizenRE might be operating with smoke and mirrors, but a Utah company named International Automated Systems seems to have made a true breakthrough that has real implications for the solar industry.
From the article:
IAUS's unique thin-film solar lens can be produced at a fraction of the cost of today's traditional photovoltaic solar panels. IAUS believes its new product is the first solar power technology with legitimate potential to compete with gas and other fossil fuels in the immediate future. Low-cost energy produced by IAUS's new patented and patent-pending solar technology can be used to generate electricity or produce clean fuels such as hydrogen and green methanol (gasoline replacements) at a competitive price. Many experts had predicted that no solar power technology would likely accomplish this milestone before the year 2025.
One thing is clear, 2007 is going to be a very busy year for the solar PV industry. If state and federal government continues to expand support of solar through incentives, the sky really is the limit.
Update 2/15: US Department of Energy Headquarters to Get $30M Solar PV System. Legislation calls for a 300 foot long, 130 foot tall solar array in the heart of Washington, D.C. Awesome stuff!
