Duke Energy Model: It Makes Too Much Sense

We just got back from an RFP Conference with Southern California Edison, followed by the InterSolar trade show. Aside from keeping us busy, the two events were thought-provoking.

At the SCE RFP Conference, I learned a lot about the limitations that current transmission capacity has on expanding solar and wind power. SCE intends to purchase 250MW of renewable energy from private sources under PPA arrangements. one of the major criteria in awarding contracts will be interconnectivity. Much of their power grid is pretty close to being maximized. At the Intersolar show, we saw many, many German, Spain and China companies who are highly motivated to break into the U.S. solar market. One exhibitor had taped a handwritten sign that said "Solar Panels $1.50/Wp." Although the name of the exhibitor did not sound like that of a solar company, it was an example of how competitive things are getting for the "have nots" in the industry.

All of this got me to thinking about the pilot rooftop program that Duke Energy announced several weeks ago, where they plan to rent rooftops of their customers and install PV solar modules, thereby creating a distributive solar energy capability. There are other utilities around the country who have announced similar programs. It makes a lot of sense. And while they're at it, why not take advantage of potential new entrants into the U.S. market, thereby keeping the cost down?

There are very good companies, such as CEEG and Best Solar, offering top quality solar panels, offering insured warranties, who would make compelling bids to get their panels on the Duke Energy or other utility rooftops. And there are companies like WholeSolar, who could facilitate these types of deals and help to select qualified installers at the best prices to do the installations.

It makes too much sense. This will clearly be one of the paths to solar energy ubiquity.

How Do We Change the Way the Culture Thinks of Solar Power?

Last week, a few of us were bouncing ideas back and forth on Twitter. We were talking about the obstacles preventing ubiquity of solar power in both the residential and commercial areas. Lack of financing, of course, came up. So did the issue of different states and municipalities offering incentives, not to mention varying or even non-existent net metering rules. Jeff Wolfe of groSolar tweeted, "Financing and culture are the two biggest hurdles." I understood and agreed with financing, but I wasn't sure what he meant by "culture." Jeff quickly set me straight, "Culture. Getting people to think about energy, or a future -- that requires concerted effort. Changing people's thoughts on what is valuable." I got it load and clear.

Jeff is the CEO of groSolar, one of the fastest growing solar companies in America. He has put together a great team of professionals and recently acquired Borrego Solar's residential operations. In addition to that, Jeff is one of the good guys in the industry. His point-of-view is to be much valued, as he is on the cutting edge of what's happening in the industry. So when Jeff speaks, I listen. "Changing the Culture" is a pretty big order. How do we do that? What exactly is involved? Let's try to break it down.

Well, to start with, the regular Joe or Jane on the street just isn't thinking about energy. They aren't thinking a whole lot about their future, or the future of their kids. But let's keep the discussion just about Joe or Jane thinking about there own future. As I mentioned in my earlier blog, three years ago, I was right there with them. Fortunately for me, I got a wake-up call and jumped into action. So how do we wake up Joe and Jane? What does it take to make a cultural change? As Jeff stated, what is needed is "a concerted effort." We've got to change "people's thoughts on what is valuable." Many years ago I heard Buckminster Fuller recommend that to bring about change it needed to be an "Each on, teach one" proposition. Hopefully, we can do this by many of us blogging and tweeting. I'm always in search of other blogs that further this cause and I have listed the ones I've found elsewhere on this page. Solar Fred has been blogging about how much sense it makes and how easy it is to "go solar." He has a passion to which I can relate, he's not on anyone's payroll and integrity is just as important to him as going solar is. If you know some good blog sites, please shoot me an email at roy@whole-solar.com

Financing needs to be more readily available and easier to access. This is an area that holds great interest for me. I believe there are great investor opportunities to be had in solar in the down-market and I'm personally trying to put together some ideas that will be good to help change the culture. The 1BOG model of bringing community activism into the process to converting community energy to solar at a big purchase discount is definitely going to help change the culture in the communities they reach. The Berkeley First is another idea whose time has come, and more programs along these lines will advance the change in how we think of solar. The Duke Energy model of renting rooftops and installing solar panels has me scratching my head wondering why there are not more utilities following this course. I believe there are people like Mary Shields, and her new company UR Solar Power, who are focused on pushing the possibilities in this arena. All of these separate initiatives will undoubtedly make contributions to the change that is needed...and inevitable.

But for us, right on, let's stay with the idea of "Each one, Teach on" or as I said in my last blog, "pass it on." In the process, Joe and Jane will become more fully informed.