Everything they say about the failed Solar business models is right on but they completely miss the strongest point. The current Solar market is based on Grid-Tied Solar which, by its very design, can only work as long as it is insignificant. When all of the solar initiatives and support programs for Solar were passed, Solar was, indeed, very much insignificant. Now that these programs have been in place for a while Solar is starting to become significant and causes grid instability that has to be addressed by installing expensive, polluting, high maintenance, fossil fuel driven, peaker plants to absorb the dynamics introduced by Solar with a quick enough response time to stabilize the grid. This is no secret and every grid company on the planet understands this. The only reason that the Grid-Tied solar initiatives were passed in the first place is because the grid companies were not very good at articulating the problem. This is driving the older players, like Spain and Germany, to cut back on the programs.
Check out this link: http://shareholdersunite.com/2011/10/02/feed-in-tariffs-economic-consequences/ This just goes on and on and substantiates the overwhelming need driving a new business plan for the Solar Industry. The things I have talked about for years are happening now. As opponents to renewables look for weapons to use to influence governments to drop the Solar initiative programs this will be a very strong, technologically sound, argument. This, added to everything in the link above creates a very strong need for a new business model for the Solar industry.
OLD BUSINESS MODEL SYSTEM
Boulder Grid-tie, 3,680 w Solar, 552 kWh solar per month
QUANTITY
COST
EXTENDED
CS6P-230-P 230 Watt Solar Panel
16
$464
$7,424
Grid-Tie Inverter 4,000 Watt
1
$2,072
$2,072
Hardware, wires and other B.O.S.
$2,000
TOTAL
$11,496
NEW BUSINESS MODEL SYSTEM (TRANSVERTER BASED)
Boulder 4 kW UPS, 1,840 w Solar, 276 kWh solar per month
QUANTITY
COST
EXTENDED
CS6P-230-P 230 Watt Solar Panel
8
$464
$3,712
TRANSVERTER POWER MODULE 2000W
2
$2,000
$4,000
TRANSVERTER REMOTE PANEL
1
$200
$200
TRANSVERTER T13X (Demand Response & AMI)
1
$600
$600
MK S31-SLD-G 12 V 108AH BATTERIES GEL
6
$262
$1,572
Hardware, wires and other B.O.S.
$1,494
TOTAL
$11,578
You will notice that they both cost about the same. Now look at the comparison:
OLD BUSINESS MODEL
NEW BUSINESS MODEL
PRICE
$11,496
$11,578
SOLAR POWER
3,680 Watts
1,840 Watts
% SOLAR
65%
32%
UPS
NO
4,000 Watts
GRID INTERACTIVE
INTO GRID ONLY
BOTH WAYS
ENERGY STORAGE
NONE
7.7 kWh
AUTOMATIC DEMAND RESPONSE
NONE
6 30 AMP CIRCUITS 20% REDUCTION TYPICAL
AUTOMATIC SURGE ASSIST
NONE
4,000 Watts
AUTOMATIC POWER FACTOR COMPENSATION OF LOADS
NONE
4,000 Watts
MONITOR AND CONTROL OF ENTIRE GRID SERVICE
NONE
INTEGRATED WITH DATALOGGING
REDUCTION IN GRID SERVICE
NONE
100 AMP -> 50 AMP TYPICAL
COMMUNITY ENERGY STORAGE
NONE
RULE BASED
SMART GRID
NONE
COMPLETELY IMPLEMENTED AUTONOMOUSLY
ENERGY PRODUCED
9 - 18 KWH PER DAY
4.5 - 9.0 KWH PER DAY
AUTOMATIC DEMAND REDUCTION
NONE
8 KWH PER DAY TYPICAL
TOTAL ENERGY SAVINGS
9 - 18 KWH PER DAY
12 - 17 KWH PER DAY
SCALABILITY
1% - 15% MAXIMUM
INFINITELY SCALABLE
ENERGY SECURITY
NONE
FUNCTIONAL LIVING INDEFINITELY
Solar now has a smaller piece of the pie. However, now the pie is much much bigger.
Transverter at Solar Power International 2011.The collapse of Evergreen Solar and Solyndra, and now Sterling Energy Systems, really drives the point home and shatters the dreams of new green jobs for America. In short, the solar industry needs a new business model that doesn't rely on government incentives or handouts. That is what we are doing, selling a new business model. The idea is to replace the old, two value, solar equation (energy produced + government handout) with a fat equation with very many values like UPS, Energy Security, Smart Grid, Integrated Energy Storage, Islanding Capability, Power Factor Compensation, Surge Assist, Making the Whole World a Laboratory, Advanced Automatic Demand Response, Smart Energy management & Reduction, etc., etc.