The 2015 Top 500 Solar Contractors issue featured comments from solar executives on a variety of topics. Below are responses provided by Top Contractors on issues of business opportunity. To read the whole issue, including all Top Contractor Q&A’s, click here.
Why is the California agricultural market a good solar business opportunity?
California’s agricultural market has proved to be recession-proof, growing 28% since 2008. Meanwhile, utility rates continue to rise. As of January 2015, PG&E charged a rate of $0.217 per kWh, an increase of 30.3% from 2008. Competitive financing options have continued to proliferate for California farms looking to go solar, with the cost of capital for solar loans and tax leases currently averaging between 4 to 6%. When all of these positive factors converge with heightened competition among solar integrators for a piece of the California agriculture market, more and more California growers will deservingly be the recipients of solar systems that offer very attractive utility savings.
– William Pham, CEO, Cenergy Power (No. 31 Overall)
How will the drought in California impact the solar industry?
The drought in California has forced agricultural operations to become more reliant on ground water, which must be pumped out of the ground with wells. In many cases these wells are going deeper and need large 200- to 400-hp motors. This increased pumping has amplified their electric utility cost. The added utility cost coupled with the introduction of meter aggregation has spurred farmers’ interest in investing in solar projects. Meter aggregation allows farmers to install one large solar array that will produce kilowatt hour credits that are then applied to multiple meters in the adjacent area.
– Mike Pickett, president, Pickett Solar (No. 104 Overall)
How have emerging industries in Colorado and other states changed your business?
Continued cost declines in solar PV deployment, coupled with progressive policies enabling virtual and community net metering, present opportunities to increase the addressable market for distributed solar in the U.S. and abroad. Together with AES’ market leadership and experience with battery-based energy storage, we also see ways to participate in the behind-the-meter solar plus storage market—estimated to have an annual market value of over $1 billion by 2018. Evolving regulatory regimes in states such as New York and California are encouraging distributed energy services providers to work with utilities to meet customer needs for energy cost reduction, security of supply, convenience and control, and sustainability.
– Rob Masinter, COO, AES Distributed Energy (No. 59 Overall)
How has the natural gas industry impacted solar in Pennsylvania?
The impact has been mostly positive, although indirect. Experts say natural gas could bring volatility to electricity prices. That’s good for us, as solar pricing is stable in the long term. And according to EIA, natural gas prices tend to increase over time. Solar, meanwhile, is an inflation-proof investment. Natural gas has also put money in some rural landowners’ pockets, allowing them to finance the purchase of a solar array, which provides savings to them in the long term. On the negative side, the natural gas industry has convinced the public that it will solve all of its energy needs—that’s wrong. The legislature tends to focus on natural gas as our “energy answer,” as well.
– Tim Beiler, CEO, Paradise Energy Solutions (No. 143 Overall)
With wind and other clean sources of energy playing a dominant role in Texas, how do you get people excited about solar?
The exciting part of our work at Axium Solar is that most people we talk to are already excited about solar. People who live in Texas know that we have a great solar resource. They want to find a way to harness that abundant, clean energy from the sun to achieve their energy and environmental goals. Texans see solar energy as a way to achieve responsible energy independence and mitigate the risk of rising energy costs. Our real mission is not to generate excitement but to make solar accessible by deploying the right technology at the right price.
– K. Eric Cotney, vice president of sales and marketing, Axium Solar (No. 188 Overall)
How is financing influencing PV adoption?
Third-party financing for PV has opened the market to opportunities that otherwise wouldn’t have been there through traditional purchasing programs. This provides the developer an opportunity to work with site hosts and help create the best suited financial program that works best for all parties. These financing options, along with federal, state and utility incentives, help to make PV adoption a much easier process.
– Michael Silvestrini, President, Greenskies Renewable Energy (No. 48 Overall)
Maria Spanner says
I so agree.