Solar Services Hitting The Mainstream?

Via ClimateWire, a report on the recently announced partnership between Sungevity and Lowe’s Home improvement stores to help customers quote and install a solar system.  As the article notes:

“…Critics often charge that solar is “fringe” or “inaccessible,” which has historically been true. Since the 70’s, home solar photovoltaics has been largely a technology for environmentally-conscious first adopters and hi-tech lovers. But with prices coming steadily – and now dramatically – down over the years, and companies adopting innovative financing models to make a purchase easier, solar PV has moved far beyond that label.

Sungevity is an up-and coming player in the solar services area.  Started in California in 2007, the company created a web-based quoting system using satellite imagery that made it very easy (and free) to get a same-day quote for a system. If the customer approved the system, Sungevity would send an independent installation partner over to finish the job. Last year, Sungevity started offering a solar-lease product through its site, which allowed a customer to purchase a system by only paying a relatively small fee each month – in many cases less than what the consumer was paying for electricity from the utility.

On the residential side, SolarCity and SunRun have been leaders in solar leasing and power purchase agreement products. (i.e. paying for the delivered electricity, rather than a flat fee per month.) In fact, SunRun just brought in another $200 million in tax equity to finance solar systems around the country.

Under this new partnership, Lowe’s has purchased a 20% stake in Sungevity. Sungevity will install kiosks around Lowe’s home improvement stores in California, giving customers access to its free iQuote process and educating them about the leasing product. By exposing the service to Lowe’s massive customer base, Sungevity may be able to increase the reach of its services by an order of magnitude.

This is part of a new trend of big-box retailers thinking about either installing solar or offering services themselves. Last year, Lowe’s partnered with Westinghouse Solar, which offers a “plug and play” module that streamlines installation and opens up the market to more DIYers.  (As it turns out, the product hasn’t as well as they’d thought it would, so the companies are looking into adding installation services to the mix – which may explain the Sungevity deal.)  Home Depot has also entered the fray, offering similar solar panel products. And all kinds of major big box retailers, including Wal-Mart and Target, are installing large solar PV systems to offset electricity use at their stores.

Why is all this significant? It’s a strong sign that solar is emerging as a mainstream product. Yes, solar PV still plays a very small role in our current electricity supply; but with the industry now providing more “services” that eliminate up-front barriers and bring the technology to a wide swath of customers, solar has broken into more mainstream markets.

Saying that solar “can’t scale” because of our past experiences completely ignores the incredible innovation in how businesses are delivering the product to consumers and businesses.”



This entry was posted on Tuesday, May 24th, 2011 at 3:49 am and is filed under Uncategorized.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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About This Blog And Its Author
As potential uses for building and parking lot roofspace continue to grow, unique opportunities to understand and profit from this trend will emerge. Roof Options is committed to tracking the evolving uses of roof estate – spanning solar power, rainwater harvesting, wind power, gardens & farms, “cooling” sites, advertising, apiculture, and telecom transmission platforms – to help unlock the nascent, complex, and expanding roofspace asset class.

Educated at Yale University (Bachelor of Arts - History) and Harvard (Master in Public Policy - International Development), Monty Simus has held a lifelong interest in environmental and conservation issues, primarily as they relate to freshwater scarcity, renewable energy, and national park policy. Working from a water-scarce base in Las Vegas with his wife and son, he is the founder of Water Politics, an organization dedicated to the identification and analysis of geopolitical water issues arising from the world’s growing and vast water deficits, and is also a co-founder of SmartMarkets, an eco-preneurial venture that applies web 2.0 technology and online social networking innovations to motivate energy & water conservation. He previously worked for an independent power producer in Central Asia; co-authored an article appearing in the Summer 2010 issue of the Tulane Environmental Law Journal, titled: “The Water Ethic: The Inexorable Birth Of A Certain Alienable Right”; and authored an article appearing in the inaugural issue of Johns Hopkins University's Global Water Magazine in July 2010 titled: “H2Own: The Water Ethic and an Equitable Market for the Exchange of Individual Water Efficiency Credits.”