Demise of Solar panel manufacturers

Ateneo Innovation and Entrepreneurship

From Energy and Capital

What is happenning in the solar manufacturing industry.  First was the closure of Solyndra, and then followed by Evergreen Solar and Spectra.  As with other companies that went belly up, they were beaten by technologies that are cheaper.  

Prices of solar panels have gone down by 50%.

But wait, there are solar companies that are surviving and growing.  To mention:   Sun Run, Sungevity, and SolarCity.  Sun Run would be seem to be the biggest.  Credit Suisse bet $200  million on Sun Run.  It took them 4 years to have 10,000 installations.  Now it took them 1 year to reach the same number.

These are non solar manufacturers;   these companies install solar panels for homeowners and lease them for 20 years. The homeowners pay a fixed rate for electricity generated.

Now that generates constant cash flow for the investors:   risk free.

The innovation is not the technology but the social and economic innovation:   the homeowner does not have to fork out huge cash upfront nor worry about installation and risk;   the installer who leases gets a fixed cash flow, can pay its investors, and be another utility company.

Question:  will be this be a regulated business soon?


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