SOLAR TODAY - May 2011 - Innovative Design
SOLAR TODAY - May 2011 - Innovative Design
SOLAR TODAY - May 2011 - Innovative Design
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innovators | Peter and Lyndon Rive, SolarCity<br />
and any problem that arises is ours,” Lyndon says.<br />
So the company spends a lot of time on safety and<br />
quality-assurance training. The goal is to get to<br />
the end of the 20-year lease with no hiccups. Then<br />
the customer can buy the system, have SolarCity<br />
remove it, or renew with an upgrade to the newest,<br />
most efficient technology.<br />
Today, Elon is chairman of SolarCity while<br />
running both Space-X and Tesla. Lyndon is CEO,<br />
Peter is COO, and younger sister Almeda Rive<br />
works in sales. Kimbal owns a restaurant, The<br />
Kitchen, in Boulder, Colo., and Russell owns an<br />
interactive-graphics firm, SuperUber, in Brazil.<br />
It hasn’t been all smooth sailing. During the<br />
crash of September and October, 2008, Morgan<br />
Stanley closed the division that funded much of<br />
the SolarLease program and SolarCity had to<br />
scramble for new leasing partners. Today’s crisis<br />
is in the rollback of state and utility company<br />
incentives.<br />
“The larger issue with utilities is that they have<br />
a conflict of interest with regard to solar,” Lyndon<br />
says. “They’re in the business of selling power.”<br />
The way utilities see it, subsidizing distributed<br />
“The larger issue with utilities<br />
is that they have a conflict of<br />
interest with regard to solar.”<br />
solar cuts into their profitability. Decoupling<br />
profits from gross power sales has worked in<br />
California, but hasn’t been adopted elsewhere.<br />
So the future, Lyndon says, lies in recruiting utility<br />
companies as investment partners.<br />
“We are in the business of providing clean<br />
energy at lower cost than you’re paying now,”<br />
Lyndon explains. “We don’t care who our partner<br />
is. Most financing has consisted of solar systems<br />
owned by banks, but when financial institutions<br />
aren’t profitable — and many aren’t now<br />
— they can’t take advantage of tax credits. Now<br />
we see utilities taking that role. There are utility<br />
companies that see opportunities in solar, and<br />
utilities that see solar as a threat. There is a massive<br />
opportunity to get into solar by investing<br />
in projects. Pacific Gas & Electric has been an<br />
investment partner in solar projects and earned<br />
a decent return, and we’ve seen other utilities get<br />
into this space. We can create an opportunity for<br />
them.” A potential model is the growth of the cell<br />
phone industry. Fixed-line phone companies that<br />
declined to invest in cell networks have failed,<br />
while fixed-line phone companies that did invest<br />
in cell networks have thrived.<br />
“What keeps me up at night now are the<br />
political issues, like the battle over incentives in<br />
Colorado,” Lyndon says. “The House of Representatives<br />
is now going after the Department of<br />
Energy loan guarantee program. That would hurt<br />
the industry. If the goal is to achieve grid parity<br />
without subsidies, the industry needs another<br />
four or five years of a stable investment climate.<br />
California is a perfect example of a long-term<br />
program — it has gradually stepped down to a<br />
35-cent-per-watt rebate, and adoption has never<br />
been higher.” ST<br />
24 <strong>May</strong> <strong>2011</strong> <strong>SOLAR</strong> <strong>TODAY</strong> solartoday.org Copyright © <strong>2011</strong> by the American Solar Energy Society Inc. All rights reserved.