Solar Installation Competition Heats Up
Tuesday, 09 September 2008 19:04
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California Solar Initiative had installed over 280 MW of grid-tied photovoltaic (PV) capacity statewide by the end of 2007. According to the CSI Staff Progress Report of July 2008 the new solar installed in the first six months of 2008, through the CSI program, equaled the total of all installations of 2006 statewide. PG&E's participation in the residential sector (7,153 projects) continues to far exceed that of SCE (Southern California Edison) and CCSE (California Center for Sustainable Energy) in the first 18 months of the program. High new solar installed systems has kept the costs for crystalline silicone panels steady and manufacturers are struggling to increase capacity to keep up with demand. Two variables that remain are the Investment Tax Credit (ITC) which is limbo and due to expire at the end of 2008. Plus the distractions of US economy which are at work correcting the recent maladies of the housing and credit markets.
At the same time in Northern California, the residential solar installation business is becoming more competitive as more new companies enter the solar arena and other companies are adding a solar focus to their existing contractors license. Many more direct and peripheral jobs are being created as the industry matures. This is due in part to the presence of large private companies such as Solar City and public companies such as Akeena Solar who are redefining the residential solar installation business by utilizing better economies of scale and implementing programs to help with customer system financing. This puts pressure on independent local dealers and installers who find it difficult to find and win installation jobs due to a lack of both large buying power and the ability to take advantage of these economies of scale.
"The opportunities are greater than they have ever been," said Bob Chaudhuri, CEO of Solar Universe. "Local solar installers will be facing pressure on their margins as large integrators refine their processes. The installation landscape is changing and Solar Universe is set up to fully support the independent contractor." Solar Universe is bringing about another model allowing independent PV contractors to take advantage of a large support infrastructure through the ability to utilize a unified brand, simplified internal paperwork process, large scale advertising with online presence and providing a continuing education program that supports the PV installers. These are important components that will allow the marketplace to grow as external constraints become more evident.
The PV marketplace is doing what it can to decrease costs associated with installations, but industry is still waiting for the materials costs to decrease to make the installation industry economically stable as the CSI levels decrease (www.csi-trigger.com). The need to decrease the cost of materials has been a key assumption of the senate and assembly bills passed working to build California's renewables economy. The PV installation industry will need long term stability in order to thrive.
Some cities are taking a proactive role in solar implementation as the CSI incentive levels decrease. How do you know what's happening in your local community? Go to your city's website and check out their plans for environmental action and sustainability (California Leauge of Cities). You can also come to NorCal Solar's Annual Solar Celebration where we will deliver the City Solar Awards to the cities in the nine Bay Area counties that have a proven track record of PV installations. To find out more please visit their website, sign up for our newsletter and watch your inbox for more information.
Last Updated ( Saturday, 13 September 2008 05:23 )
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Monday, 08 September 2008 16:31
Whose Side are You On?
Whose Side Are You On?
On the side of the American consumer and the taxpayer, or Big Oil?
Are the days over when we pay for Big Oil to gouge us with high fuel prices? Its about time that the Congress did something about Big Oil other than line their pockets with oil money. And Congress has done something. Speaker Nancy Pelosi threw down the gauntlet to other members of Congress and basically said, “Whose side are you on -- the American consumer and taxpayer -- or Big Oil? If they want to drill off shore, then fine, but they have to pay for it!”
Last Updated ( Monday, 29 September 2008 00:16 )
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Sunday, 07 September 2008 23:00
 The above sign is one you don’t see often in this day and time. Jobs have been farmed out to overseas companies, and the result is that the people of other countries benefit from what should be an inalienable right of any American worker. Aside from the thousands of jobs lost in this country to workers in other countries, factories have closed down here in this country and have left thousands without income. This country is in debt many trillions of dollars because of foolish spending and a protracted war, and yet this administration came into power with a budget surplus left by the past administration. And as the economy slides further and further down hill the only surcease offered by the Republican old guard is more coal and more nuclear, neither of which will open up the job market as far as it needs in order to bring prosperity back to this country.
Last Updated ( Monday, 29 September 2008 00:16 )
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Sunday, 07 September 2008 00:19
 The Republican Party earlier this week, in its national platform, called for an end to ethanol mandates.
Republican candidate, John McCain, has gone as far as to publicly opposed ethanol subsidies, but the platform approved during the Republican convention in St. Paul was the first time a major U.S. party took an official stance against publicly funded ethanol incentives, according to The Associated Press.
In contrast, the Republican platform four years ago called for “efforts to expand the use of biodiesel and ethanol,” the AP said.
Renewable fuels such as cellulosed ethanol play an important role in America’s energy future. If we dismantle the current energy policies, the market will view our leaders as no longer supportive of alternatives, be it wind, solar, or biofuels.
Many in the industry expect ethanol opposition to wane as energy companies move from corn-based to cellulosed ethanol, which is made from perennial grasses or plant waste such as Miscanthis, Switch Grass, Corn Cobs or even Wood Chips.
It is widely know that the Energy Policies of the past administration has been suspect to say the least. What is in store for the American People is anyone’s guess.
On one side of the coin you have two candidates that essentially agree that something must done to curtail America’s addiction to foreign oil. One the other side, neither candidate has come out with a HARD energy policy. I guess that we will see which renewable energy direction our government will take after the November election.
Last Updated ( Monday, 29 September 2008 00:20 )
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