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Entreprenews you can use: Sungevity

'Dell of solar' seeks to make it cheap and user-friendly to get rooftop PV

Posted by David Roberts at 10:19 AM on 23 Jun 2008

SungevityToday, a company called Sungevity announced the availability of what they're calling the cheapest solar system in the world: a rooftop solar panel system, fully installed, for $2,000.

That's as much as I paid for my computer.

For that price, the average home will save $21,000 in electricity over 25 years -- a 45 percent return on investment.

From a simple web interface, customers can plug in their address and Sungevity will use satellite and aerial imagery to assess their rooftop solar potential and offer them a range of options within 24 hours. Ordering can be done online, as easily as ordering a book from Amazon. (The company fills out all the necessary permits and mails them for a signature.)

Sungevity packages

Rather than the months of a typical PV order, the entire process, from quote to installation, takes just a couple of weeks.

Now, to bring us back to earth, the caveat -- and it's a doozy.

This system is available only to residents of San Francisco, and only temporarily, as it is pegged to the $1.5 million in incentives the city will begin handing out today through its Solar Energy Incentive Program. The program will offer up to $6,000 to individuals and $10,000 to businesses to install PV. In non-SF reality, Sungevity's 1.5kW starter system is around $8,000 installed.

Still, the company's got plenty to boast about. In fairly short order, it has undercut the price of other solar providers in California by up to 10 percent. How? By taking steps to commoditize the PV market.

"There's so much money being spent on the hardware and technology end of the business," says Sungevity CXO and president Danny Kennedy, "and yet 50 percent of the cost the customer pays -- which is the only price that matters -- is downstream of the factory gates. Even if a Nanosolar panel came out and it was free, it would still cost $5/watt to get it up on a roof." While press and investor attention largely focus on whizbang new generation technologies like modular CSP, nanotubes, and printable films, Sungevity is focused on distribution, installation, and customer service.

Kennedy worked for years as a Greenpeace organizer, pushing for solar support in California. Now, with a group of fellow green expatriates, he's knee deep in commerce. (Says Greenpeace USA head John Passacantando, "Danny Kennedy was one of our greatest warriors fighting for a green and peaceful future. But I always knew victory would be at hand when some of the warriors would shift their focus and raise the capital to literally build the green energy future with real green jobs.") When I spoke with Kennedy, what he's most excited about is a recent milestone: "We made our first fully online sale! It was to an octogenarian, which sort of blew away our assumptions about who the customer was."

Sungevity only went state-wide in California a few months ago, one of many businesses pulled into the slipstream of the state's Million Solar Roofs program, but its ambitions are large. Right now the company is limited to Calif., because that's as far as its installer subcontracting network goes, but Kennedy expects to go nationwide, or at least to top solar states, within a year or two. And he wants to start building a nationwide network of reputable, certified installers:

The whole point of Sungevity is to facilitate the scaling of solar by making it easier, not just for customers -- that's the first innovation -- but also for installers and other contractors to get in the game. Our view is that to save the planet with solar we've got to something like 700x the solar installed capacity. You're not going to do that just by growing the mom-and-pop shops. With all due respect to them -- and they're wonderful people, and I've known and loved and worked with them for over a decade -- that high-end, low-volume, high-cost business will always have a place for the premium and elite customers, but there also has to be a Dell.

(And sure enough, Fortune's Todd Woody has dubbed Sungevity "the Dell of solar energy.")

Because rooftop assessment can be done remotely and on the cheap, Sungevity can size up large numbers of roofs at once. Kennedy is open to working with larger customers, "be it a city that wants to reduce its carbon emissions, a corporate that wants to support its staff to do the green thing, or a utility that wants to value add to their grid and preserve them from the need to invest in substation upgrades or new transmission."

For a small East Bay town called Albany, the company remotely assessed around 3,500 roofs and discovered that roughly 2,000 were solar-appropriate. "If every one of those customers went solar with Sungevity, the 2,000 homes combined would save that community $30 million in electricity over the next 25 years and 40,000 tons of CO2," says Kennedy. The company sent direct mail to those 2,000 addresses; each mailer had a picture of the house with a PV installation on it, a price quote, and a pitch for the investment benefits of PV. Through this kind of marketing, Sungevity is attempting to scale the solar market beyond the LOHAS choir.

As it happens, the aforementioned octogenarian was one of those Albany customers.

"This is a serious way to make the dream of a million solar roofs in California real, or tens of millions across America real," Kennedy says proudly. "We now can effectively model, aggregate demand for, and design a cost-effective way to deliver that dream."

Great planning

I had a chance to meet and speak with Danny Kennedy a few months ago and he's the real deal. With the right market incentives, this company is really set to spearhead the consumer solar market in CA. I can't wait to watch it happen.

Financing

This sounds great. Creating better financing mechanisms is a good way to get around the market failure of individuals being unwilling to invest in efficiency improvements. They may not have the capital now, but could be willing to enter into an agreement that makes the improvements, in exchange for a flow of payments across the lifetime of the new system.

a sibilant intake of breath
get that solar ball rolling

Sure, it's a caveat that the program is only available in San Francisco. But, if the program is successful it could do wonders as both a model and an example to convince larger regions to implement similar projects. New innovations in Concentrator PV power (CPV) are making small-scale systems increasingly affordable and efficient. It's about time we saw something like this get off the ground.

why aren't LA and San Diego doing this?

Firstly, thanks for this!  Local, point of use PV and wind (including oversized systems in prime resource areas) with feed-in tariffs and tax incentives are THE answer to the first 50% of this nation's RPS.  Hopefully, tech and pricing will improve (and more importantly, policy) so they will meet the second 50% as well.

This raises an important point, though.  I am constantly baffled by the boasting LADWP's David Nahai and Mayor Villaraigosa do about how "green" they are and how "aggressively" they are pursuing rooftop solar when hundreds, if not thousands of cities with much fewer "solar resource" are doing exponentially more.  Berkeley, SF, much of spain, all of Germany.  Chula Vista for chrissakes!  

For example, on a per-capita basis, LADWP has installed far fewer than 5% of the rooftop PV systems Germany has, despite the incredible solar capacity and enthusiasm of LA.  incentives like SF's (don't forget their fantastic capital financing system, repayable through the property tax system), and the FEED IN TARIFF mandated by Germany make the difference, and help to level the playing field for small producers like you and me, against the monsters of Big Energy who get to destroy OUR land, steal OUR homes and build out THEIR monopolies on OUR dime (yep, including Big Solar and Big Wind!).  This corporate welfare is unconscionable for both conservatives and liberals, and it must be diverted back to US!

LADWP's answer to the hue and cry for renewable power has been to push for wilderness-killing power plants 100 miles away, coupled with a massive powerline that will essentially destroy the Joshua Tree area and the world-famous landscapes, rock formations and viewsheds there.  Huh?  Did you learn nothing from Chinatown?  LA cannot "outsource" huge amounts of environmental devastation under the "GreenLA" banner, can it?

Everybody needs to start pushing MUCH harder for municipal and state governments to step up the ACTION to match the rhetoric.  There is a public workshop on Feed-in Tariffs at the CEC on Monday, June 30:

http://www.energy.ca.gov/portfolio/documents/index.html#0 ...

I hope all of you will weigh in heavily in support of a statewide program of FAIR MARKET (or above market) VALUE long-term tariffs for small producers like homes and businesses to be implemented IMMEDIATELY, and will copy Villaraigosa, Schwarzenegger and your state reps.  Your money's gonna be spent one way or the other, why not have it spent to improve your life and your income, rather than some fat guy with a cigar's?

the greenest energy is that which you needn't ever produce.

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