Selling the Sun

Comments

• Bob Whitney wrote on March 03, 2009, 11:38PM : Flag this comment as inappropriate

  Very timely solar energy article. Excellent background on the Power-Purchasing Agreements, which can finance solar electric investment. Jigar Shah is not only a capitalist, but a conservation-capitalist. Maybe America will be green after all.

• Solar Bozo wrote on March 05, 2009, 11:57PM : Flag this comment as inappropriate

  Well, in reality he's a Johnny-come lately, just looking to cash in on others' work. The unsung heroes are the ones that spent the last 25 years trying to make RE a reality, slowly building up demand to create more PV manufacturing capacity and developing balance of system components. Then when the whole system is ready for prime time, a handful of newbies get the credit.

• Ronald O. Edwards wrote on March 12, 2009, 06:44AM : Flag this comment as inappropriate

  I agree with Soar bozo that so many individuals and groups have pioneered the practicality of solar power and credit should go them. Yet one must accept the concept of Jigar Shah to create a method that would allow development that is more competitive.

• Laura Wright, senior editor, OnEarth wrote on March 17, 2009, 06:44PM : Flag this comment as inappropriate

  Have to say that I disagree with those who marginalize the contributions of Jigar Shah and the business plan he developed. Shah took a great technology and turned it into something that investors want to support and consumers can afford to buy. The model he developed, which is based on a power-purchasing agreement between a solar provider and an electricity user, has been an instrumental player in creating demand for solar. In fact, we're receiving lots of letters from readers asking how they can find companies that offer power-purchasing agreements for residential customers in their hometowns. We don't have all the answers.

  So readers, help us out! Does anyone have any tips to share?

• Warren Stephens wrote on March 23, 2009, 03:22PM : Flag this comment as inappropriate

  There is widespread undervaluation (perhaps even a belief of negative value) of "the middle man" in economic transactions -- regardless of how much expertise "the middle man" brings to the exchange.

  SunEdison appears to be constantly renewing its expertise with respect to the technology, the economics, the installation, and other aspects of solar power. There appears to be a lot of "new" in their re-"new"-able business.

• LuAnn Kowar wrote on March 29, 2009, 10:15AM : Flag this comment as inappropriate

  I do believe that emphasizing Mr. Shah's contribution to growing the use of solar energy collection and distribution --- which he did not invent nor pioneer, as did the basic-research and applied-research scientists in the field --- still the product has to ATTRACT enough venture capital to get it bought and used by higher-end companies, such as say Kohl's. I understand the resentment that the article portrays Shah as braver and more committed than the scientists, whereas he is as committed, and clear at leveraging Capitalism to get solar into-the-field. After all, Shah, through his scheme (yes, I say scheme, because it is a business scheme that should receive continued scrutiny to see if it is sustainable!), removed the cost-barrier at the front-end for prospective customers, by making it "free" --- which is, financed, over time, by the fixed-cost PPA's; then, at the next level, he provides an incentive to venture capitalists to give him more money to make more product. If not this plan, than something like it, would always be necessary to get private investors to funnel huge amounts of capital to the nascent industry. What is a real crime, though, is that, were the political will present in the United States over the past thirty years, this already could have been accomplished by the Federal Government infusing capital to solar, with it getting returns on contracts for public-private partnerships. There wasn't the political will for that, until very recently, so Mr. Shah saw a niche, and filled it fairly nicely. After all, Kohl's will pretently be meeting the 2020 goal some State's have for mandated for percentage-of-renewable-electricity use. Who can argue with that as an example?

• Off-Grid Emerging Markets wrote on April 14, 2009, 07:34PM : Flag this comment as inappropriate

  The following comment only applies if you rely on the grid for power: "You're talking at least 15 to 20 years before we're producing more solar power than we can use on the spot."

  What about off-grid applications (rural electrification), urban/commercial backup power, or when 'net zero' homes become a requirement--what are the implications for storage?

• Sun Lover wrote on April 22, 2009, 01:43PM : Flag this comment as inappropriate

  Jigar Shah's contributions to solar energy in no way diminishes the work of the pioneers that came before him. He took what those pioneers began and added some new ideas to it in order to increase marketability. He was by no means the beginning and will by no means be the end of the building of this energy resource. Various people contribute new ideas that continue to change and grow what has been established so far. Shah made advancements and with any good fortune others will make additional advancements on the work he has done. It is all good for the process of getting onto a better track and should all be lauded rather than trying to point to who did more, who did what first or whose contributions were more important. Does any of that really matter as long as we're going in the right direction?

• Clear skys wrote on May 08, 2009, 12:31PM : Flag this comment as inappropriate

  Every penny SunEdison has made or borrowed has been reinvested in solar; Jigar Shah hasn't taken a dime for himself. He's the genuine article and his contribution is well summarized in this article. It's true that others lobbied for the tax incentives that made PPAs possible, but they weren't and still aren't enough by themselves to make solar profitable.

• Jim Martin-Schramm wrote on May 25, 2009, 06:26PM : Flag this comment as inappropriate

  Great article. Are these PPAs only possible in states with deregulated electricity markets so that customers can purchase power from a variety of generators, not just one utility with a monopoly on their service territory? Our utility in Iowa has told us we can only purchase power from them and no one else. I have been in conversation with a firm that is taking an approach similar to Sun Edison and they claim such PPAs are possible even in regulated states like Iowa so long as the power is placed behind the customer's meter and the utility's lines are not used to transmit power to the site. Can any readers shed light on these matters?

• Christopher Yaun wrote on September 13, 2009, 04:04AM : Flag this comment as inappropriate

  Please explain a PPA to me?

  1000kw of PV installed cost $8,000,000.
  Let us guess that SunPower can install for half that cost or $4,000,000.

  Add in rebates and depreciations and the cost falls to $3,000,000.

  1000kw of PV will yields 1300kwh per day in New England, maybe 4000kwh/day in Las Vegas.

  4000 x 365 = 1,460,000 kwh per year

  at 10 cents per KWH that $146,000 per year to the investor.

  Ten years that $1,460,000 to the investor.

  $3m in $1.5m out? Sounds like a bust to me.

  What is the rest of the equation?

• Regina Marshall wrote on September 26, 2009, 10:19PM : Flag this comment as inappropriate

  Jigar Shah, you are absolutely correct, when you say it is the bank roling of an industry which yields it success. You are a genius! Good luck with your continued innovations on energy solutions!

• Augustin K. Kamdem wrote on October 07, 2009, 02:28PM : Flag this comment as inappropriate

  This is a great article! I have been following the solar industry for 3 years and this is one of the best articles I have read so far. I agree with what Solar Bozo said. It is only a matter of time before solar becomes mainstream. PPA model is great, but I don't think it is the main driver for this industry. Mr. Shah, although brilliant should not give himself all the credit. The PPA business model is only one piece of the big puzzle of solving global warming. The other pieces that are equally important include: continued technological innovations, political will and incentives and socio-cultural change, adoption and reeducation. All theses pillars are equally primordial to the long-term success of the solar and RE industry. Like Shah, I faithfully believe that the wave of a green sustainable world is unstoppable.