Solar Revolution: Pushing Utilities Into Action

Old 'energy' America is out of gas.

The renewable energy revolution and, specifically, the solar revolution, is on a charge like never before… full charge. It’s a trumpets- blaring kind of charge. The status quo, aka utility companies, are having a difficult time adapting and adopting to the surge in demand. Most likely with the onset of higher energy costs, nuclear meltdown and awareness on price decreases in solar. The adoption rate has occurred at such a high level that LA Department of Water & Power (LADWP), released a statement explaining how they are changing their solar rebate policy because:

A)     The demand has overextended their fiscal budgeting by almost 300%, and;

B)      Citing safety concerns since they don’t have the bandwidth to inspect more than 80% of the installs in a timely fashion.

SB 1 passed in 2006 (coined “The Million Solar Roofs Bill”), requires state municipal utilities to create their own solar rebate program for their utility ratepayers, among other mandated components & enforcement directives through 2016.  The utility companies across the country have typically lobbied against pro-solar legislation, like SB1, so there is natural skepticism as to LADPW  motive of “temporarily” suspending their rebate program.  LADPW isn’t the first utility to maneuver this direction, other utilities in pro solar states like Colorado & Florida have take similar evasive action, too. Regardless, of honest vs. dishonest intentions, the one powerful statement this is making is that Solar ubiquity in America Is for real! Demand/solar adoption rates are increasing, and supply is really the biggest threat to getting the pricing to the sweet spot of making adoption as mainstream as super sizing your french fries.

Pricing at All Time Low

Since 2008, WholeSolar has been bringing solar buyers together to increase their buying power. The result is lower wholesale pricing. It’s like “Groupon” for solar. Pricing has dropped extensively since 2008, but frankly there has never been a better time to buy solar than right now – even if all the utilities who are mandated by State approved rebate programs, revolted.  Literally, at the publication of this post we have negotiated unheard of pricing on behalf of the WholeSolar buying group.  Consumers, are eating this up, given that solar, typically returns that cost within a 6-7 years of savings. More importantly, the home owners “cost-of-doing-nothing” is staggering. Nobody knows where pricing will go later this year and on into 2012.  Even, with a pricing flux, the fact is that more states are going to be passing bills like SB1, and the momentum of the energy revolution in America is going to continue. The solar surge has the momentum that is going to help recharge the economy, and not be stopped by a utility lobby, or a presidential election, unless they want to be on the wrong side of history.

With pricing being at this level of a low & demand increasing to an all time high, utilities like LADPW are going to be forced to seriously review their rebate programs, refine them and meet the demand. Currently, LADPW is budgeted $30 million for 2011 rebate programs, and has confirmed requests for $112 million and we just started the 2^nd quarter of the year! Granted, this reveals that LADPW, most likely under budgeted their rebate program to barely meet the law of the California. But, it tells a terrific legislative success story, and more importantly paints a great economic picture of how solar adoption is slowly changing the way Utilities do business.

Earth Day 2011: PG&E – Change or PR Charade? (Part 3)

I’m hanging out at Asilomar, surrounded by nature. With Earth Day itself in the rear view mirror, I guess I’m basking in an Earth Week glow which began a week ago at San Diego’s gigantic EarthFair and has continued here at one of my favorite places in the world. It seems that every newspaper I pick up has another article pertaining to the Solar Tribe. In Part 1, I wrote about National Solar Quote Month, the EarthFair in San Diego and Lawrence Berkeley National Laboratories’ new study that shows how much value solar adds to solar home prices. In Part 2, I wrote about the benefits of group purchases of solar (exactly the way we do it at WholeSolar) becoming more broadly understood and put into practice. Here, in Part 3 of the Earth Day blogs, we’ll take a slight departure and suspend judgment as to whether this subject calls for Solar Tribe celebration.

Earth Day afternoon was spent at the Monterey Aquarium. What a wonderful place of learning, most of which is interactive in a way that captivates attention and leaves the child or adult with knowledge about the ocean, its living creatures and the climate change challenges it faces. We ended up spending several hours there. We could have spent another day there, as well. If you have not yet experienced the Monterey Aquarium, I highly recommend putting it on your list. As we left the aquarium and walked down Cannery Row, I saw the headlines of the Earth Day edition of the San Francisco Chronicle: “Pacific Gas & Electric CEO Resigns.” My first thought was, “It’s about time. What took him so long?” Then I bought and read the paper and started thinking.

Pacific Gas & Electric Corp.’s top executive is stepping down with a $35 million retirement package following a “challenging year” that included a gas pipeline explosion in a San Francisco suburb that killed eight and destroyed 38 homes, the company announced Thursday. Chairman, chief executive and President Peter Darbee will retire on April 30, PG&E said in a statement.

$35 million for a voluntary resignation. Hmm. I wonder what Californians would think of that, particular the affected PG&E ratepayers. We didn’t have to wait long to read a response (from mercurynews.com):

With outrage growing over PG&E’s plan to award outgoing CEO Peter Darbee $35 million as he retires under a cloud of controversy, Gov. Jerry Brown said Friday that ratepayers should not be required to pay any of Darbee’s retirement package.

“At a moment when so many Californians face foreclosure, unemployment and depressed wages, it’s about time for corporations to rein in executive compensation,” Brown said. “At the very least, California ratepayers should not be footing the bill for this.”

As Brown weighed in on the controversy, however, the California Public Utilities Commission, which regulates PG&E and other utilities, acknowledged late Friday that ratepayers will pick up nearly one-third of the bill for Darbee’s retirement.

It turns out, that with recently issued stock options, Darbee’s actual payoff will be nearer $40 million. I guess this makes up for the $2 million cut in pay that Darbee was forced to take for being CEO during such a tough year for PG&E as 2010. In addition to the San Bruno disaster, Darbee supposedly led the a $45 million spending spree on a statewide initiative to hamstring local competition to PG&E’s power business and followed that losing debacle with a very clumsy roll out of wireless Smart Meters. So, are we to believe that with Darbee gone that PG&E will “straighten up and fly right?”

The irony of all of this was that Peter Darbee had such a promising start as PG&E’s CEO. He was billed as an outsider, a guy with “fresh eyes.” The San Francisco Chronicle wrote it well today in its editorial:

There were striking and bold steps at the start such as his conviction that climate change was real and that PG&E should adopt policies on renewable energy to meet the problem.

What happened? Was the initiative decision his or that of the PG&E Board of Directors? Was Darbee really the problem or was he one of two sacrificial lambs? So far, the PG&E CEO and COO have resigned. Its President, Christopher Johns and its Board remain in their entirety. One of the Board members, Lee Cox, will serve as Interim Chairman and CEO. Cox has been on the PG&E Board for 15 years. According to the Chronicle, speculation is that the search for Darbee’s permanent replacement is nearing completion. Michael Peevey, head of the California Public Utilities Commission, is encouraging that Darbee’s permanent replacement be someone with deep experience in the utility industry. State Assemblyman Jerry Hill, who represents San Bruno, has a totally opposite point of view:

“It has to be someone from outside, someone who can come in with no baggage,” said Assemblyman Jerry Hill. ” The utility industry and the regulators seem to have an incestuous relationship.”

Clearly, it remains to be seen whether Darbee’s resignation is good news or not. Earth Week certainly has not been uneventful.

Earth Day 2011: There Is A Lot To Celebrate (Part 2)

Today is the the 40th anniversary of Earth Day: Earth Day 2011. Earlier, in Part 1 of this blog, I shared about hanging out at Asilomar, reflecting on the recent EarthFair, the last week of National Solar Quote Week and reading many wonderful articles about our industry in the local newspapers. In Part 1, I wrote about reading yesterday of a new study that documents how solar boosts home values.

This morning, I picked up the local Monterey newspaper, the Monterey Herald. It carried an article by Tracy Seipel of the San Jose Mercury News titled, ” ‘Solar Group Buy’ Program launched in California.” This one warmed my heart, because its about EXACTLY what we’ve been doing at WholeSolar for the past couple of years. It turns out that the article was written weeks earlier, but had finally found the its way, through syndication, to Monterey. While the concept is not new (see One Block Off the Grid), it certainly is important enough to repeat again and again.

What the City of San Jose has done is develop a pilot program, with the help of a $100,000 grant from the Federal government, that encouraged city workers “to band together to increase their buying power and simplify the sometimes confusing process of going solar.” They have named the program “SunShares.” The article indicates they have also “launched a new program that will allow businesses and governments throughout the region to take advantage of similar “solar group buys.” The goal in all of this is simple: to bring the cost down, generate jobs and demonstrate how simple it is to go solar.

“It’s the Groupon of Solar”

When I Googled the article title, I found that it is being picked up in strong numbers through syndication across the United States, which is great as far as the goal of Solarizing America. Rafael Reyes, director of the Bay Area Climate Collective put like this:

“It’s the Groupon of solar. Our challenge is to take a good model like San Jose’s and replicate it throughout the region.”

I love the comparison of SunShares to to the extremely popular online coupon program called Groupon. WholeSolar has been championing a version of the SunShares program to both independent installers, as well as homeowners, long before San Jose launched SunShares. It just makes sense. No one of us has the buying power of all of us. Together, we can reduce costs. Together, we can simplify the process of going solar. And in the process of doing so, we will create jobs.

Together, let’s solarize America!

To Be Continued…

Earth Day 2011: There Is A Lot To Celebrate (Part 1)

I’m sitting here at the Asilomar Conference Grounds, one of my favorite places on Earth, enjoying pure nature surrounding me. And it’s the forty year anniversary of Earth Day. For those of you who have not experienced Asilomar, it is located out on the end of the Monterey Peninsula (between Monterey and Carmel). It’s a place where it seems as though mountains meet the sea and wildlife is plentiful. Deer, raccoons, squirrels and blue birds are friendly, and so are the people who stay here. Reading the local paper these past few days has reminded me that the Solar Tribe has much to celebrate.

WholeSolar at EarthFair 2011

First, we’ve got a week to go for our National Solar Quote Month. April has been very good to many of us. WholeSolar was one of many exhibitors at San Diego’s annual EarthFair last weekend. The fair, which is held at the vast Balboa Park, drew more than 70,000 visitors. Needless to say, WholeSolar had a great opportunity to talk about solar, solar quote month and set many appointments with curious homeowners. This was my second time as an exhibitor at EarthFair. I love the people who attend. Mix that with National Solar Quote Month and the experience was a clear winner.

Yesterday I opened the San Francisco Chronicle and read a great article titled Solar Panels Boost Values. In a nutshell, the article reaffirmed what many of us in the industry already knew from a financial valuation perspective, but couldn’t put our arms around  any third party verification. Well here it is:

“Shell out the money to install solar panels on your home, and you’ll probably recoup that investment when it comes time to sell the house. You might even make a little profit. A study to be released today by Lawrence Berkeley National Laboratory found that solar boosts the value of homes, both new and old,” writes David R. Baker, Chronicle staff writer.

In addition, the home owner will get the benefits of reduced or even free electricity while living in the home. We’ve always known that solar increases home values in a manner greater than any home remodeling work does, we just couldn’t point to objective proof. Now we can. And, if you ask me, the study, which analyzed home sales between 2000 and 2009, might still come up short on the real increase in value that can be negotiated at arms-length by an informed home buyer and seller. To the home buyer, the value is derived from the free electricity received as a result of buying a solar home. The realistic question to be negotiated between the parties is the length of time that the buyer will receive this benefit. For example, quality solar panels and inverters will generate free electricity for many years, with minimal maintenance. And what about valuing increasing utility rates during this free electricity period?

The Lawrence Berkeley National Laboratory study documents that on 2,000 home resales, sellers at least recouped the cost they paid for their solar system, and then some. Perhaps it reflects the theory from the buyer’s point-of-view that, notwithstanding how much free electricity the buyer will save, that the maximum amount most buyers are willing to assign to solar is the cost that they would incur installing it themselves. Since the sale and purchase of a home IS a negotiation between two parties, if you are the seller with a solar home, make sure you are represented by a real estate broker who fully understands the benefits and has the ability to present them in terms of present values. If you do, I’ll bet your results will be better than indicated in this new study.

Having said that, it’s wonderful to have the new study as “baseline” third party evidence about the value of reselling a solar home.

To be continued…

Here Comes Panasonic

WholeSolar attended the latest Consumer Electronics Show (“CES”). The integration of green vendors and related product launches was quite impressive for a “consumer electronics” show. They had a large section of the Las Vegas convention center south floor dedicated to “Green” innovation. Among the many leaders was the powerhouse brand Panasonic, unveiling a smart energy control system that interfaces with a consumer’s solar energy or interchangable home energy setup. The Panasonic Home Energy Management System, leverages a Smart Energy Gateway (SEG) configuration, which forms a complementary addition to Panasonic’s solar power generation systems and household fuel cells that create energy, as well as the household lithium batteries that store energy and other energy-saving devices. The SEG, thus allows the consumer to understand, at a glance, his power use and CO₂ emissions, supporting his family‘s energy-saving lifestyle. Panasonic has provided an empowering glance into the near future by previewing the way that SEG advocates on a consumer’s behalf by connecting a consumer’s home with the smart grid and selling its excess energy during the day, when prices are high. In addition, it computes energy usage and will purchase needed energy from the smart grid when prices are low, in the evening.  This type of eco ideation paints the picture of how the traditional complicated energy world could become more simplified for everyday family and home consumers.

How Panasonic’s Home Energy Management System Works:

Power is supplied from the power plant to the household in alternating current (AC). Conversely, power created by solar and storage batteries is direct current (DC). Panasonic’s hybrid distribution system allows direct use of DC-to-DC compatible devices such as LED lighting, eliminating any power loss from current conversion. Everything is controlled by remote, with a digital interface showing by room breakdown on energy usage and help create a master control to manage usage throughout the home.

Panasonic is serious about targeting Green:

The fact that a household brand like Panasonic is not only developing green tech, but making significant investment in the development and emerging technology,  shows how green tech is going less “geekafied” and becoming more mainstream. This, we believe, is a terrific indicator for everyone in solar who is positioned to take on growing marketshare. Panasonic, bought 51 percent of Sanyo, a major supplier of lithium-ion batteries and solar panels, and is rumored to buy the remainder in 2011. A version of the Sanyo-Panasonic panel combines a layer of crystalline and a layer of amorphous silicon to boost power production. To further boost energy output, the “HIT Double” panel, if propped 50 centimeters to one meter above a white roof,  can boost power production by 30 percent.

Since gas companies in Japan do not sell electricity, fuel cell development is an attractive opportunity for Japanese gas companies to expand in the energy marketplace. As a result, Panasonic is working with local utilities in Japan to bring natural fuel cells into the home. It’s methanol fuel cell technology was touted in their Green agenda at CES, claiming it to be four years away from introduction into the global market. The cost-saving hydrogen fuel cell is already in homes in Japan, but is expected to be offered at a higher price point when it hits the US. A hydrogen fuel cell in a home with three TV sets, a dishwasher, clothes washer, dryer, personal computer and air conditioner, saves about $95 a month. At the same time, conventionally generated electricity would remain available should the power generated by their fuel cell run low. Panasonic guarantees at least a $50/month cost savings, and while the initial price of the system will not produce a good ROI (approximately $9,500 over 10 years, on lease), Panasonic is clearly leading the way with this technology.

Given that Sanyo is the largest lithium-ion rechargeable battery producer and 11th-largest solar cell producer in the world with a quickly-growing solar panel manufacturing arm. Panasonic’s monetary commitment of spending billions of dollars on solar & home fuel cell innovations (it’s no joke that they not only want to sell plasma TV’s), demonstrates its determination to accomplish their goal of being “Number 1 green innovation company” by 2018.

From Solar Nation: What Happens in California May Not Stay in California

This is one of the rare times I have read something and immediately want to share it with the Solar Tribe. I debated whether to blog along the same lines and work in quotes, but in the final analysis, this says it all for me. So, without further ado, the following email was received today from Solar Nation:

Voters of California won a big one for climate and clean energy on Tuesday when they decisively beat back Big Fossil’s attempt to mold state laws to its liking.  The infamous proposition 23, the attempt by out-of-state oil

80% (of Americans) want federal subsidies shifted from fossil fuels to solar

companies and others to sideline California’s Global Warming Solutions Act, went down to a convincing 61-39 defeat at the ballot box.

This is not just significant, this is HUGE.  In an election cycle in which private corporations – including many foreign companies – shoveled money at candidates who could be counted on to be compliant with their corporate agendas, Golden State voters saw through the misinformation of the prop. 23 campaign and voted accordingly.  And that sent the message to the rest of the country that, in a state where voters understand and care about such issues, polluting industries don’t automatically get their own way.  Not only that, but this is a state where the success or failure of energy and environmental legislation has a way of getting exported to many other states.  That’s how critical this particular battle was.

If their chiropractors are OK with it, Californian voters should twist around and pat themselves on the back for that one.

Prop. 26

The story with that state’s proposition 26 is a little more complex.  Also backed by Big Oil, its passage means that certain environmental fees will be reclassified as taxes, meaning that they will require a two-thirds vote of the legislature to be imposed.  This makes it politically more difficult to, for instance, charge polluters and raise funds for the benefit of clean energy, water and air.  However, a senior Administration official said on Wednesday that this will only apply to laws passed from next year on;  since the threatened Global Warming Solutions Act – AB32 – was passed in 2006, it should not be affected.

Why It Matters

The voting results on prop. 23 matter, and not just for California.  Many of the freshman class of newly elected U.S. Congresspersons are fond of pointing at Democrats’ embrace of green causes as a factor in their poor Election Day showing.  But here are some recent findings from a Kelton Research survey of solar/climate issues:

• 94% of Americans polled believe it’s important to develop and use solar power;
• 80% want federal subsidies shifted from fossil fuels to solar;
• 70-80% want the Government to tackle climate change;
• 49% would pay more for clean, reliable solar energy.

The implication is that the California ballot initiative results, not to mention the results of many of the statewide and U.S. races in that state, fairly well reflect the mood of the country on these matters.  And that means that the 112th Congress should think very carefully before nullifying the progress made, to this point, on clean energy legislation around the country.

Assuming, of course, they’re paying attention.

Special thanks for Solar Nation

K.I.S.S. – Keep It Simple, Solar

It’s almost November. Solar Power International 2010 is in the rear view

mirror and 2011 is just around the corner. It’s a great time to ask the question: How are we doing as an industry? At ASES 2010 we heard Lyn Rosoff of Smart Power tell us that marketing polls indicate that “84% of those polled intend to buy clean energy.”

Of course their actions indicate far less. So, what’s wrong? There seems to be a consensus of opinion that the major market objections for buying solar are:

1. Solar lacks a strong value proposition (high cost, long payback)
2. There’s no financing
3. Solar energy is unreliable because it depends on the weather
4. It’s too complex
5. There’s no marketing and therefore no buzz

In general, the consumers don’t understand the technology. We have an energy-ignorant public that is easily misinformed. So, what can we do? How can we engage the public? It’s not like solar is the first industry to face these challenges. All we need to do is look to other industries in the past to get a clue as to where we are going. Look at the PC industry in the 1980′s, look at the home improvement industry to some extent or the Internet in the 1990′s. Solar needs a user-friendly GUI. Solar needs to get simple. Over the past couple of years we’re seeing the beginnings to the move toward simplification expressed in many ways. The introduction of an AC panel by Westinghouse (formerly known as Andalay) last year has lead to a number of panel and micro inverter manufacturers announcing at the Solar Power International 2010 Show their own version of AC panels to be available for sale sometime in 2011. (by the way, WholeSolar is proud to now be an authorized Westinghouse distributor/dealer). Last year Zep introduced a labor-saving racking system, pushing other racking manufacturers to do the same. Further, Zep recently announced broadening the number of panel manufacturers with which its product will be compatible. One manufacturer, UpSolar, was displaying a Zep-compatible AC panel at the Solar Power International 2010 Show. We’re seeing more software and web-based companies introducing products that simplify paperwork required throughout the solar sale and installation process. “User-friendly,” “plug-and-play,” “easy-to-install” become common catch phrases as technology moves from the early-adopter to the mainstream market in any industry. Solar is certainly no different in this regard. But that brings us back to the market objections I identified earlier. How do we as an industry, or as members of the solar tribe, break through the mystery and engage the public? We believe the answer is simple (to paraphrase a former US President): it’s about the marketing, solar. The solar industry has a retail messaging problem. We need to develop a simple message, an easy message and a strong compelling call to action. The first step is understand the customer. Lyn Rosoff spoke of marketing studies that showed  these ten key findings to help us understand customers:

1. There are regional differences as far as what motivates buying solar customers. Some areas, like Oregon, customers are motivated by environmental concerns, while in other areas they are motivated by finance. In other words, there are two different types of “green” motivators.
2. To many, going solar means a change in lifestyle
3. There is huge customer confusion about solar. As one person put it, “Understanding solar can feel like a full-time job.”
4. Solar lacks a clear brand, or as another respondent put it “Where’s the Nike of the solar industry?”
5. Upfront costs are the biggest barrier.
6. A solar sale is a long sales cycle (1 to 2 years).
7. Installers are the key. Customers like their installers.
8. Internet is the key. Most solar customers used the Internet.
9. Many customers asked “what is the message of the solar industry?”
10. Thinking about solar IS an action

In addition to being a material aggregator for a group of small independent installers across the country, WholeSolar has begun to work with these same installers in making the conversion to being a retailer and simplifying the message. There are many ways to create a buzz about what we’re doing. We need to find the method that works best for you. The value proposition must be the number one message on our websites, in our conversations and throughout our messaging. We need to adopt the same approach as is used in selling cars. Simple. Easy. No-brainer. We need to take away the complexity by using the best sales tool available, our satisfied customers. In Portland they are called “solar ambassadors.” They are probably the most passionate solar advocates around. They’ve already put their money where their mouth is and they love it. And the probably also love you, if you were their installer. Solar ambassadors are probably the best lead generator you have. Once we’ve got the lead, don’t lose the sale. WholeSolar and others have developed a simple four-step sales approach that keeps the focus on the customer’s needs and “driving home” the value proposition in a compelling way. It’s important at this point in the sales cycle that the value proposition is delivered efficiently and effectively…simply. The key to success, we believe, is: Keep It Simple, Solar.

What is SunPower Going to Do Next?

There are so many subjects of opinion and conversation every year at Solar Power International, not to mention rumors and gossip. One of the topics that was continually coming up was the subject of various PV manufacturer business models and product differentiation – both real and perceived. The one that seem to most get my attention was the hierarchy of panel makers and whether anything will be changing soon.

Everyone knows that the number one panel in terms of efficiency and energy density is the SunPower panel and that number two is the Sanyo HIT panel. They are also the most expensive, primarily because both companies use proprietary production methods that drive up the cost. SunPower has enjoyed its lofty perch and priced itself like a Ferrari.

What many of us don’t realize is that Suniva and others are rapidly making up the gap that exists between the top two and the rest of the pack. In fact, Suniva expects to exceed 20% efficiency before January 2012 using traditional production methods. Suniva is positioned itself, not as a Ferrari, but as a Honda. And Suniva is not alone in its diligent efforts to drive up the power at lower prices. In July, Shayam Mehta wrote that, in addition to Suniva, Suntech. Yingli, Trina and JA Solar are all “employing a different approach to commercializing high-efficiency products which should dispel notions that we have reached the end of the road as concerns technological progress in crystalline silicon manufacturing.” Mehta’s article profiles “the firms that stand at the forefront of crystalline silicon efficiency, both now and looking to the future, and put their efficiency initiatives under the microscope.”

Schwartz Communications poses the question as to whether the SunPower Advantage is Almost Gone. They point out that “now many are saying that the low-cost module makers from outside the US are shifting their attention to performance which could erode SunPower’s performance advantage and eat into the company’s premium status.”

SunPower already seems to be spinning a new business model, much to the frustration of many of its loyal installers. I spoke with several SunPower installers at SPI2010 who expressed frustration with the recent SunPower changes. For some it was frustrating that the communication of the changes seemed to come very abruptly, without warning and, seemingly, without considering there effect on the loyal SunPower installers. Others complained that the new product offerings named based on module efficiency instead of STC DC power rating is confusing to the consumer. In any event, SunPower appears to possibly be reacting in anticipation of the new world of photovoltiacs just around the corner.

So Many Chinese PV Manufacturers; So Little Time

There are so many exciting things that we saw at the 2010 Solar Power International (SPI) trade show. I chose to write this blog first because it was one of my first impressions at this show. Upon entering the Los Angeles Convention Center on Tuesday, I was immediately struck with how much the industry has grown in a couple of years. You could have put the entire exhibition floor of SPI 2008 (which was held in San Diego) into a portion of one of the three halls that were used for SPI 2010. As my friend Tor Valenza (aka Solar Fred) said: “It looked like we’d need running shoes to cover everything over the three day period.” I was never able to see everyone I wanted to see.

Upon my arrival Tuesday morning, I immediately set out to meet with my scheduled manufacturer appointments, most of which were in the South Hall. It wasn’t very long until I had my second “first impression”: I had never seen so many Chinese PV manufacturers of whose names I had never heard. There must have been 300 of them. Now I’m not referring to tier 1 Chinese manufacturers, nor am I referring to tier 2 Chinese manufacturers with whom I’m vaguely familiar. Since WholeSolar will not sell tier 2 products, I have not made it a practice to pay much attention to the “no-name” Chinese companies, but there was no way to ignore them. They were everywhere.

Just to give you an example, there was Zhejiang Hurras Solar Energy, Zhejiang Kingdom Solar Energy, Zhejiang Leye Photovoltiac, Zhejiang Shinew Photelectronic, Zhejiang Sunflower Light Energy Science and Technology, Zhejiang Topoint, Zhejiang ZG-Cell and Zhenjiang Tonglin Electric. That didn’t even cover all the “Z” PV manufacturers. You get the picture?

Someone at the show commented that there were “about 450 PV manufacturers in the world and 400 of them are from China.” If those numbers are remotely true, my guess is that we saw a majority of the “no-names” on the floor of this show.

Now this begs the question, how do we know the difference between all the Chinese manufacturers? How many are actually manufacturers, as compared to marketing companies selling panels manufactured by others? How many even really have product or UL product or CEC-listed product? How do we know which ones will be here throughout the twenty-five year warranty?

WholeSolar has spent a lot of time selecting the Chinese PV panels that it offers to its installers. Chinese manufacturers who have chosen to devote resources to the US market by hiring sales and logistics personnel in the United States and maintaining inventory in the United States, such as Canadian, Trina, Yingli, Phono, Westinghouse, SunTech and Up, have all proven worthy of their tier 1 classification. CEEG and China Sunergy (CSUN on our charts) remain “old school” in their marketing and distribution, but present a high quality product to the US market. We came away from solar Power 2010 with a list of additional Chinese manufacturers to checkout, but there were so many…we just didn’t have time to visit them all.

“Shine Baby Shine!”: What’s New And Interesting at InterSolar North America 2010?

How many of you remember J.R. Ewing, the face of the US oil industry in the long-running TV series “Dallas?” Actor Larry Hagman, pulled off the J.R. character flawlessly. A couple of weeks ago at the InterSolar North America Trade Show, SolarWorld introduced a brilliant new marketing campaign with ol’ J.R. as it’s centerpiece. The campaign includes videos of Larry Hagman saying, “Forget oil. Solar is the energy of the 21st century.” The campaign is appropriately named “Shine Baby Shine.” This was only one of many interesting developments at this year’s show.

In addition to attending these shows for business meetings, I go with an eye toward industry trends. For example, SolarWorld’s new marketing campaign is a great attempt at taking solar mainstream. Much like Akeena’s move to license the Westinghouse brand, SolarWorld has take an American icon,  made a visual pivot from Drill Baby Drill to Shine Baby Shine and, hopefully, created a very important impression in our nation’s psyche. Their campaign is good for the industry.

SPARQ Systems, Inc. introduced a new microinverter, the model S250NA60100. The “show stopper” about this introduction was that it comes with a 25-year warranty. Too good to be true? As has been the case with microinverters, only time will tell.  Enphase has owned the microinverter category for more than three years. We’ve heard that there are half a dozen companies developing their own microinverter. SPARQ  claims to have developed patented technology that overcomes the typical operational challenges of microinverter technology, resulting in matching up the microinverter warranty to the solar panel warranty. Considering the fact that the ten-year warranty on the Enphase microinverter has been a major obstacle to more widespread development of AC panels, this raises interesting questions about the possibility of other panel manufacturers following Suntech / Andalay someday with an AC panel utilizing this new microinverter. It’s very early on for this start-up company with product launch in the near future. They are seeking installers who will participate in their test program and they are seeking investors.

Another trend can be found in the thin film arena where Japan-based Solar Frontier introduced “the most economical, ecological solar energy solutions on earth,” CIS (copper-indium-selenium) technology. It’s a thin film entry that is clearly more ecologically-friendly than CdTe and they are claiming that their manufacturing capacity will approach 1 GW in 2011. Up until now, First Solar has owned this category with its CdTe product. Many environmentalists have expressed concern regarding disposal plans for this more toxic product. Solar Frontier is betting that their technology is a game-changer.

You can see the industry’s effort to simplify everywhere. Earlier this year Zep introduced a fastening system that works with Canadian Solar panels and claims to reduce install labor time. The Akeena AC panel was created to similarly reduce labor cost. At InterSolar it appeared that many of the racking manufacturers are working to devise labor saving products. From an industry-wide point of view, this is the logical next step to reducing solar system cost. Lumeta demonstrated it’s PowerPly BIPV module which will affix rapidly on low slope roofs without the need for racking structures. How to they do it? Power Ply has adhesive backing material that sticks right to the roof. The 400W panels are 7.7 feet long by 4 feet wide and are half as thick as a crystalline silicon panel.

Mage Solar made an impression with a large team, a big booth, but more interesting to me was that both they and NESL, a Chinese PV panel manufacturer, were offering guaranteed positive power tolerances, much like Suniva has been doing. This means that the panel DC output is guaranteed to be equal or higher than the name plate rating. Mage has taken one step further, being (as far as I could tell) the first to offer (1) a ten-year product warranty, (2) a 12-year guarantee for 90% power output and (3) a 30-year guarantee for 80% output. I did a quick calculation comparing Mage’s program to the programs offered by most PV manafacturers: Mage is guaranteeing 62 MWh more over the life of a 230W panel. Mage has set up manufacturing operations in Georgia and is a Buy American product.

Finally, InterSolar was an opportunity to see the many friends we’ve made over the years and make a few new ones. Special thanks go out to Liz Merry, Tracy Ezzell, Tor Valanza (aka “Solar Fred“), Svea Jeske, Andy Black, Jack Tuttle, Clark Zivojnovich, Barry Shear, David Allen, Hal Slater, Rich Schwerin, Brenda Ropoulos and many more members of the “solar tribe” who attended InterSolar 2010 and have helped and mentored me, or just been good friends and colleagues, along the way. Shine Baby Shine!