-
-
Green Light Distrikt
Green Light Distrikt is about entrepreneurship focused on the cleantech sector. Edited by Chris Williams with frequent guest posts from friends, experts and industry insiders from clusters across the globe. Our goal is to provide a place where cleantech entrepreneurs in various clusters across the globe can learn from one another. Green Light Distrikt is creating the "Hitchikers Guide to Clentech" to provide a resource for cleantech entrepreneurs. Read more
Subscribe
Tag Archives: Solar PV
May 11th, 2010
VIDEO: The Future of Building Integrated Solar PV: CEO of Wakonda Technologies
TOPICS: BOSTON, CleanTech Kingpins, Local Events
Last month on April 20th, we hosted our first Clean Tech Kingpins events at the NEXUS Green Building Resource Center in downtown Boston.
It was a huge success! We had about 40 people, I met with some amazing people working on really innovative project. We saw 4 presentations from true leaders in the industry and a great question and answer sessions after the presentation.
Two pieces of good news. First, we caught it all on tape and I’ll be releasing each presentation with an overview of what was discussed starting today. Second, we’re going to make Clean Tech Kingpins a regular bi-monthly event that will serve as a place for young clean tech pros to recharge, find inspiration, connect with and becomes friends with their peers, and learn from current industry experts. So stay tuned!
Here’s who we had speak, and the order I’ll be writing about each discussion:
- Les Fritzemeir CEO and Founder Wakonda Technologies
- Paul Sellew CEO and Founder Harvest Power
- Chuck Lewin President New Generation Energy
- Jon Abe VP of Business Development Nexamp
Without further adieu, here is Les’s discussion on the current solar PV market, their opportunity, business model, and the future of building integrated solar PV. Enjoy!
Tagged solar, Solar PV, Wakonda Technologies
2 Comments
April 19th, 2010
The Worst Metric in Renewables: ‘Payback Period’
TOPICS: BOSTON, Business Insights, Renewable Energy
For as long as I can remember, since I was 16 and first stated going to NESEA, the renewable industry has talked about renewable investments in terms of this silly little term call ‘the payback period’. you might have heard this before, and from now, when you hear this term YOU HAVE the responsibility and obligation to correct the individual that uses this term.
At first, I went with it and used that term which we will no longer name. Then I went to school and learned something. I learned about finance, accounting and marketing and realized that ‘it’ is the least useful and most stupid metric to discuss investments, its paralyzing the renewable energy industry.
When you are thinking about investing you money, lets say in the stock market, a CD, or on a house, how often do people talk about ‘that’ term (the payback period that is)? They don’t! There’s a reason that Wall Street does not talk in terms of payback period.
Basic finance tell us that if free cash is available, if the discount rate (or internal rate of return, IRR) is greater than the weighted average cost of capital (WACC or just CC for short) the investment should be made. Thus, if an investment (in the worst case scenario) will have an IRR of 7% and the WACC is 4%, you just made 3% profit, or savings for the life of the investment.
The usefulness of speaking in terms of IRR really hit me when I was talking with my cousin, who is very interested in installing geothermal, solar thermal and solar PV on his house to reduce his substantial utility bills. The conversation went something like this:
Me: Bob, you could substantially reduce you utility bills by installing renewable energy systems on your house.
Bob: Really? Like what?
Me: Geothermal for your heating and cooling, solar thermal for hot water, and solar PV for your electricity
Bob: Hmmmm, what’s the payback on something like that?
Me: Actually, payback period is not really a useful way to compare this investment to another. For example, whats the payback of your IRA? What’s most useful is IRR and in Massachusetts most investments are usually at least 10% over the life of the system, so its a better investment then the stock market and has no risk, because you’re going to use energy even during a recession.
Bob: really?! Better than the stock market? That’s amazing! So, I might as well put my money into this.
Me: Yes, yes you should. blah blah blah
Lets be honest, most customers that can afford solar and geothermal can afford the large upfront payment and thus tend to have a lot of money. These type of customers also tend to have a lot of investments and understnad IRR much better then payback period.
Here’s my point. Stop saying/using/marketing payback periods, you’re shooting yourself in the foot! Start educating your customers about why the IRR is a much better metric and this will allow them to effectively compare this investment to other investments.
We need to remember that we’re the expert, and that we need to educate our customers about how to talk about these investments. To use a sale term, we need to frame the discussion so no objection can even be made and a renewable energy investment is the best choice.
Here’s the real pickle, why the heck was payback ever used in the first place?
Tagged Geothermal, IRR, payback period, Solar PV, solar therma, WACC
January 26th, 2010
Building Efficiency will be BIGGER than Solar in Mass – Part 1
TOPICS: BOSTON, Entrepreneurship, Government Policy, Green Building, Local Events, Resource Efficiency
On January 8th I attended a Breakfast Meeting at Foley Hoag with Phil Giudice, Commissioner of the Massachusset’s Department of Energy Resources (DOER). It was a dynamite presentation that touched on smart grid, solar, biomass, and a variety of other interesting topics - but the thing that dominated the conversation was this: there’s a tsunami of state and federal funds coming available for building efficiency in 2010. As Phil said, “the money is there and the team is in place – it’s time to have our WOW moment.” $650 million will be spent by the state to promote energy efficiency in each of the next three years (solar photovoltaic incentives through the Massachusetts Clean Energy Center will be about $12M this year and that will create 30% growth for the solar industry in Massachusetts). That’s compared to $150 million in 2008, and doesn’t include incentives offered by the utilities. These numbers could get bigger as the federal ‘Cash For Caulkers’ program details come into focus.
So What?
Policy conversations about climate change, energy independence, and job creation are all converging on this single initiative. The pieces are in place for a huge amount of money to flow through the building efficiency value chain and there are still plenty of holes to be filled. Somebody has to execute and make all of this happen. If you have an interest in building efficiency there may never be a better time to get actively involved.
Tagged Department of Energy Resource, Energy Efficiency, Phil Giudice, Solar PV
January 6th, 2010
Good News For Job Seekers! Mass Solar Industry to Grow 30% per year
TOPICS: BOSTON, Government Policy, Renewable Energy
Massachusetts new state solar incentive program that will take effect in 2010, it will create and sustain solar industry growth of 30% per year for the foreseeable future. Good news for existing solar companies, entrepreneurs looking to enter the space and college graduates that want to save the world.
Here’s the skinny. The solar photovoltaic (PV) industry is mainly driven by government incentives. There is currently a 30% federal tax credit for solar PV installation and then state governments have incentives in addition to the federal incentives. Both these incentives eventually cover between 60 to 80 percent of the cost of installing a solar power system. These incentives are needed to make installing a solar PV financially attractive.
Needless to say, state incentives are very important for the industry and are driving it forward.
2 months ago, Commonwealth Solar, the state’s first incentive, ran out of money.
On Friday December 18th I participated in a webinar hosted by the Dept. of Energy Resources (DOER) that explains what the new incentives will look like.
December 23rd, 2009
The Secret Weapon to Finding a Job Installing Solar Systems
TOPICS: BOSTON, CleanTech Guide, Renewable Energy
I’ve been writing about losing my dream job in renewable energy, what’s driving my job search and I wanted to share with you a breakthrough I found in the solar photovoltaic (PV) industry. (Quick lesson: There are two types of solar energy. Solar PV makes electricity, and solar thermal typically makes hot water)
If you’re interested in getting on the roofs and installing solar systems you need to get in with solar staffing agencies.
My goal right now is to leverage my experience doing carpentry work and installing solar domestic hot water systems to get hands on experience installer many types of renewables and efficiency before moving on to sales, financing, project development. I ended up talking with my man Miles who does operations at Alteris Inc and my friend/former boss at Heatspring. They both put me in contact with solar staffing agencies.
As I’m sure you know, the solar industry is growing very quickly, but it’s also very volatile. Here is why solar system agencies are the silver bullet.
Tagged alteris, GroSolar, job search, Solar PV, trade source, velocity energy partners
December 18th, 2009
7 Values Driving my Job Search in Clean Technology
TOPICS: BOSTON
What is my next step? A couple months ago I wrote about 7 things I learned from losing my dream job. Don’t worry, I wasn’t that sad. I’ve decided to share with you my journey to find a new opportunity.
What am I doing now? I’m exploring, meeting people, talking, sharing ideas, waiting for something to grab me. I’m not in a rush, it will happen, it’s like the Wild West out there. If you’d like to connect, I’d love to hear from you.
I’ve done some work with Urgent VC on a new venture call Subsea that will harness hydro power without the devastating effect of dams. I’ve also been installing solar thermal systems in Maine. It’s really fun work, I’m getting a tons of hands on experience, learning how to do site evaluations and steps and considerations when designing a system and how to install the systems. I got both of these gigs just through my direct network.
My goal is to become as knowledgeable as possible about the sales, financing, design, installation and development of wind, solar photovoltaic, solar thermal, geothermal and energy efficiency projects. My current years of experience has provided me a strong foundation from which I will continue to build upon.
I believe that it will be a combination of these technologies that is the solution to our energy problems and that the real innovation will come from the business models that deliver these services more so then the technology themselves. Its all about business processes, is McDonalds a worldwide corporation because of their burgers? No! It’s because of business processes are scalable.
I’ve been exploring a couple opportunities in renewable energy companies from project development, to sales, to energy auditing. As I explore the renewable energy industry here are values that drive my search:
- Impact VS Money: I always value decisions based on impact that I can make versus money to make. There’s a subtle difference. Sometimes these go hand on hand sometimes they don’t.
- Being on the Front Lines: By this I mean impacting the business. Could I work for IBM? Probably, but could I see how my action impact their bottom line or cash flow? Maybe with a microscope.
- I want to build something: I am a builder. This is similar to being on the front lines. I need to create or help create something from nothing.
- I need a challenge: I need a challenge so I can learn and constantly improve. I find that I do best when I’m slightly over my head. That way I can rise to the challenge and ask for help when needed.
- Generalist: My skill set is getting the large and most important information from many pieces, seeing the opportunity and how they fit together, and executing the solution. Thus, I need a position where I can do many things and not get in depth on a single subject. Small companies and start ups are perfect for this.
- Clean Technology space: I need to work in clean technology. It is my passion. I live it.
- Vision: I need a company that has a lofty vision but its focused that will inspire me and be a rally cry for our customers, investors, and employees. As Guy Kawasaki says, you need to make a mantra. Here’s a good example “We are going to cover every home in this country with solar panels”
So what? How can this help you?
If you’re in a similar situation and looking for an opportunity in clean technology keep in mind that there is going to be plenty of space for everyone and that this is just the beginning.
- Do your homework. Check out my Clean Tech Guide if you’re really a newbie
- Realize that the two most important traits are passion and ability to learn. The reality is that in a such a new industry barely anyone has a really good idea of whats going on.
- Ask for help. The best thing about the clean technology industry is that its about collaboration. We’re all in it together and trying to save the world. If you’re curious where you should start, just ask.
- Clarify what you’re looking for. Its okay if what you are looking for is what to look for.
Tagged Geothermal Heat Pump, job search, Solar PV, Solar Thermal, urgent vc, wind
December 15th, 2009
Clean Tech Guide 101 – Renewable Energy Part 3: Top Places to Meet Renewable Energy Professionals
TOPICS: CleanTech Guide
So, you want to work in clean tech but don’t know where to start? I found myself in the same place 3 years ago. I created the Clean Tech Guide to help people learn about the industry. I decided to create the guide after being asked a number of similar questions from friends, recent graduates, and fellow entrepreneurs about clean technology. I love to help people and noticed that my answers were typically similar, so I thought it would be useful to create a guide to refer people to.
The 1st part of the guide, Clean Tech Guide 101 Renewable Energy Part 1 Top 20 Resources to Learn about the Technology provides resource to help beginngers learn about the the fundamentals behind each technology. Part 2 of the Clean Tech Guide is a list of the Top Renewable Energy Industry Reading materials, to give you a full list of places to soak in valuable information.
Part 3 is a list of places where you can meet industry professionals.
Who is the guide for?
Recent graduates, career changers, or entrepreneurs who have little to no knowledge about clean technology but are looking for a some direction to learn about the industry.
What the purpose?
The goal will be to provide you with basic resources that you can use to begin learn about and get involved in the clean technology industry. I can only provide you with the resources that will help you, if you really want to get involved you’ll have to do most of the work, but I think this will be really helpful to start.
Best Places to meet Renewable Energy Professionals
They key to any industry is getting to know current professionals, renewable energy is no different. There are tons of conferences and events. Here are some of the best, that I’ve heard of or been to. If you’re serious about these industry, check these out.
The best part about the renewable energy and the other clean technology industries is that people are open to helping each other. This is partly due to rapid growth, there is plenty of room for everyone. It’s also due to the culture of the industry, people are willing to help and share with each other, much more so then in other industries. We are saving the world after all.
Tagged ASES, AWEA, Babson, clean tech, Geothermal, IGSHPA, NESEA, NREA, Renewable Energy, Renewable Energy World, SEIA, Small Hydro, Small Wind, Solar PV, Solar Thermal
