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on December 12th, 2011% ![]()
Hawaii has always been a place known for surf, spam and sunshine. With weather like no other, the Hawaii solar industry is in a perfect position to help educate the public about the importance of solar. With the tax credits available from the State (35%) and Federal (30%), not to mention a Hawaii solar rebate ($750) from Hawaii Energy to qualified homeowners, there’s no reason why a home/business owner should take advantage of harnessing the sun’s energy to help reduce their electricity bill.
Based on sunpluggers.com Hawaii is the fastest growing state with the fastest growth rate for solar adoption in 2009, when it added 10.8 watts per resident. that is a huge jump considering that there were more photovoltaic installations in Hawaii 2008 than the 7 previous years combined. Each day more and more homes and businesses are making the switch to free renewable energy.
Hawaii solar experts are predicting the industry won’t be slowing down anytime soon. The reason..high electricity rates Hovering at around 25 cents per kilowatt and likely to go even higher, now is the right time for consumers to start thinking of benefits solar has to offer. The advice I tell my customers are there is one way to offset high cost of living in Hawaii without hurting their pockets..SOLAR. Benefits of solar are endless.
1. Unlimited sunshine
2. Tax credits
3. Increase equity
4. create new jobs
5. Save money
Being a Hawaii solar company consultant for over 5 years, the number one concern I get from homeowners is I don’t have the money. many assume a payment in full or a huge down payment which automatically turns them away from the subject of purchasing a solar system. With a down economy it would be easy to understand being frugal would be the right thing to do. The great thing about solar is, it’s an investment that will pay for itself. With financing options available, getting a system installed is easy to do.
An average homeowner spends around $200 a month in electricity. A solar water heating system or startup photovoltaic system will save an average home around $50-$60 a month which is equivalent to a 25-30 percent savings.
With the new law in effect that all new homes must require solar water heating, the timing could have not gotten any better. It’s our chance to help Hawaii less dependent on imported fossil fuel and reach its goal of being 70 percent powered using clean energy by 2030. In my opinion, with more Hawaii solar companies being established in just the last couple years, Hawaii might reach its goal way sooner than expected.which is a good thing.
The best complement as a consultant is when I’m at the beach eating a musubi, checking out the surf and I come across a Hawaii solar company customer in the water and I get reminded of how much they love their solar system.
on December 7th, 2011% ![]()
Editor’s Note: EarthTechling kicks off in-house columns today to comment on timely issues around the cleantech revolution. Joining us is noted cleantech blogger , talking about off base financial media coverage of the solar industry.
The Wall Street Journal is still with more concern-trolling over renewable energy. “The collapse of Solyndra LLC in September sent shock waves throughout the solar industry, but the company’s spectacular flameout hasn’t completely scared investors away…” began an article subtitled “despite Solyndra’s notorious failure, a few investors put new money in the sector” and saved as “despite Gloom around Solar Power, some Investors Put New Money in Sector”. Give me a break.
image via Shutterstock
Those investing in solar are hardly reeling from shock over one novel solar technology bankruptcy. only the most avid Fox News watcher would conclude that one opposition-manufactured “scandal” involving one bankruptcy would kill off all competition for the fossil fuel industry that is so closely aligned with Fox News and the Wall Street Journal.
In may, before Republicans ginned-up the supposed controversy over the DOE funding of Solyndra, Ernst & Young revealed that privatequarter over quarter and that 32% of that went to solar companies – so, the next quarter should finally bring the bad news, right?
But in September, third quarter investment in US renewables was also. Clean-technology investments totaled $1.1 billion in the US in that quarter alone, according to an Ernst & Young analysis based on data from Dow Jones VentureSource.
So all through those months of the supposed scandal, investors were actually doubling down on solar investment. and far from dwindling to “a few” or “some” investors as the WSJ variously subtitled today’s concerns, the number of deals increased., says Ernst & Young, and California, home of Solyndra, led the way.
“Secondary fund-raising totaled 168.7 million during Q3, 48% lower than the amount raised in Q3 2010 and 37% lower than that raised in the previous three months,” said the Ernst & Young. “almost three quarters of the total relates to a single company Gulf Keystone with 90% of AIM-listed oil and gas companies raising no capital. This was mirrored across AIM, with the 413.8 million raised less than half Q2s 954 million”.
So Ernst & Young data on private investment shows that investment in risky startups in renewables continued up during the brouhaha, while investment in a comparably risky startup sector of the fossil fuel industry continued down.
No, what actually is sending “shock waves through the solar industry” is the intense competition, driving down the costs to expected parity with fossil power – and that’s even not counting the hidden health and climate costs of fossil energy – within the next five years. Even China, the industry leader in cheap solar panel manufacturing is hurting from this increasingly fierce competition.
Solar is a young and rapidly growing industry, where demand and supply in solar are not yet well balanced, and in addition, new technology is driving both opportunities and risks for investors.that price competition is winnowing out companies, in the same way as it does in every other rapidly growing nascent industry. When it comes to other industries, the financial papers are able to cover that process without resorting to the smelling salts. Renewables, not so much.
on December 6th, 2011% ![]()
Solar stocks can use all the help available, and news is out today that may help the ailing U.S.-based solar sector. the industry has complained of China’s solar firms dumping solar cheap panels and the U.S. International Trade Commission has just come out in favor of U.S. solar companies.
The ITC bulletin noted that it has “made affirmative determinations in its five-year (sunset) reviews concerning Crystalline Silicon Photovoltaic Cells and Modules from China. the USITC vote noted “Preliminary phase antidumping and countervailing duty investigations: Crystalline Silicon Photovoltaic Cells and Modules from China, Inv. Nos. 701-TA-481 and 731-TA-1190 (Preliminary)” today as the ITC sees threat or injury to U.S. solar firms from Chinese companies.
Seven US solar PV makers jointly filed the claim, but only the US unit of Germany’s SolarWorld was identified. top US solar makers First Solar inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWRA) are not among the companies that signed on and no specific Chinese makers were identified in the complaint.
Leading makers like Trina Solar ltd. (NYSE: TSL), JA Solar Holdings Co. ltd. (NASDAQ: JASO), and LDK Solar inc. (NYSE: LDK) are surely among the targets. as far as LDK Solar is concerned, we have noted that this company is mathematically bankrupt without a guarantee from China.
Today’s news is not a registered victory as the outcome (and damage awards) are not yet known, but it is an indication that the U.S. solar players may get some margin stabilization ahead.
on December 5th, 2011% ![]() Weather for Sheffield
Tuesday 06 December 2011
Temperature: 3 C to 4 C
Wednesday 07 December 2011
Temperature: 3 C to 6 C
Thursday 08 December 2011
Temperature: 2 C to 8 C
Wind direction: South west
Friday 09 December 2011
Temperature: -0 C to 4 C
Saturday 10 December 2011
Temperature: 1 C to 3 C
on December 2nd, 2011% ![]()
Morgan Solar Inc. announced today that Enbridge Inc. (NYSE: ENB) has invested $9.8 million as part of a $28.8 million round of funding.
Enbridge was brought on as investor to help commercialize the company’s concentrating photovoltaic panels, reports CNET News.
Enbridge is focused mostly on oil and gas distribution, Morgan Solar is the first solar technology company they have invested in, reports CNET.
Morgan Solar’s technology has a step up on competitors. Their solar concentrators are made from glass and acrylic and light is focused onto high-end, multi-junction solar cells. The concentrators are thin in comparison to others on the market, making them stand up against wind better, says Morgan Solar.
TechFinacne.ca reports that Morgan Solar “… is a developer of the Sun Simba, a turnkey, rapidly deployed solar energy generation solution. The Sun Simba is fully integrated with Morgan Solar’s lightweight, self-ballasted Savanna tracker, and easily scaled from 10-kilowatt to multi-megawatt installations.”
Morgan Solar’s innovative technologies make them an ideal investment opportunity.
The company’s B round investors include returning investors, Inversiones Financieras Perseo SL/Iberdrola Group SA and new Ventures Group LLC/Nypro Inc., and new investors, Frost Group and an unnamed Canadian private investment fund.
That’s all for now,
Media / Interview Requests? Click Here.
on December 2nd, 2011% ![]()
How it works… brieflyWithout going into way too much detail I will say it’s a good idea to know how solar power operates. Solar power’s core comes from things called solar cells.
There’s something called the photoelectric effect that goes like this: a semiconductor absorbs sunlight and causes electrons to separate from their atoms.
The free electrons go on to generate an electrical current as they travel in a circuit that’s built in the solar cells.
First things firstWhile reading below about all the money solar will save you and your family, keep in mind that you’ll also be actively helping the environment. Solar is a clean, healthy and renewable energy source, so you can start telling folks to thank you for helping improve air quality and thus quality of life for everyone.
Save a lot of moneySolar power costs about 80% less than your current utility bill. so if your electric bill now runs $150 per month, with solar power your electric bill would only cost $40.
Generating your own power at least pays you an extra $100 every month. and that’s if you pay a modest $150 a month for your utilities – $400 or more is not an uncommon “normal” utility bill…
Sell extra energy you generate to your utility companiesThis is no joke. when you use solar energy your meter will actually spin backwards. not to mention the joy you’ll feel cashing a monthly check written out to you from the electric company – nothing could be finer.
Yearly tax deductionsAnyone using solar energy is automatically going to get federal and state tax credits. any work made to your house involving the use of solar energy counts toward the credits and can easily cover the cost of over half of your new solar powered energy system.
Here’s an example of the tax refunds that you will get for a year in which you bought a Residential Hot Water System in the state of Illinois:
Solar Unit and Installation Cost: $10,000State of Illinois Rebate: -$ 3,000Federal Solar Tax Credit: -$ 2,000
Cost of Solar Hot Water System: $5,000
Pricing optionsEvery state has its own tax incentives, but most if not all states give rebates that will pay for at least part of your new solar energy system. A lot of cities will also help you out by lowering the cost of your property taxes, which is great.
But even if current government incentives cut our cost in half $5,000 is still a decent chunk of change where I come from, and sometimes it’s hard to wrangle up that extra $5,000 looking in the couch cushions. Trust me, I’ve tried.
Luckily there are many other options that cost way less.
You can easily make your own solar cell in under an hour using common stuff like copper, your electric stove and an electric current meter. Find it hard to believe? Solar technology isn’t really very complex, which is why you’ll find more and more people building their own solar units. You can find all the information you need online and be set up in no time.
Caution about plan accuracyThere’s a lot of online kits, guides and plans that can teach you to build solar energy systems. That’s easy. The difference usually only occurs after it’s too late: after spending a bunch of time and money you find out the plans you used were garbage. Take my word on this, please! make sure you invest in quality blueprints or else you’re going to be completely lost. There’s a few really good solar energy plans that will also tell you where to get highest quality materials for the lowest price in your area.
Consider this financial trickAnother thing you may not have considered is financing for solar powered renovations. even if you have a huge wad of cash in your eager little hand you should still consider getting a home equity loan or refinancing your home to pay for the solar improvements, and here’s why: the government offers a mortgage interest tax deduction which means you get tax deductions for all home improvements that are included into your mortgage payment.
Even better, a lot of federal mortgage places are required to offer financing for people looking to improving their home with solar power systems. even better than that? most of the loans come with low interest rates, usually way below the current mortgage interest rates for everyone else not investing in solar energy.
Definitely talk to a lender and have them go over all the financing options. if you play your cards right you walk away with tax credits, rebates and property tax discounts, as well as a new extra income source when you start selling power to your utility company… you get all of this on top of the hundreds of dollars you’ll save on your utility bill every month from now on… just for installing a solar energy system in your own home.
Bottom lineIs solar energy practical to use in your home? It’s definitely at least worth looking into. More likely than not ditching the utility company is a decision you’ll wish you had made a long time ago.
Now that most utility companies in each county are becoming monopolies without competition, and with all the big utilities pushing harder and harder every year to be allowed to set their own prices, no matter how outrageous they want them to be, I really don’t know how much longer everyone can afford to be price gouged by our utility companies.
Can you really afford to not use solar energy in your home?
Johnathan Rapp has returned thousands of dollars to Indiana taxpayers fighting fraudulent utility company activity. Find out how easy it is to make your own power at his website, Get Off The Grid Now!.
on December 2nd, 2011% ![]()
Urban tree is nothing but a technology inspired by nature. A tree shaped structure that serves multiple purposes on urban street. Designers are finding inspirations from nature to develop technology for our daily requirement. Spanish designer and architect, Xabier Perez de Arenaza, has taken inspiration from the real tree to solve urban street lighting needs. Xabier’s composition is truly an imitation of parts and functions of a real tree standing at cross roads. Fed by solar energy this tree will work as traffic signal, night lighting, temperature display and also clock, placed right at the required junctions.
Urban Tree
Driven by eco friendly motive, the designer has tried to integrate various street functions into one. Solar panels, in the form of leaves of the tree, facing the sunlight generate electricity. The trunk of the tree stores the generated power while branches have been assigned specific jobs like signaling, temperature and time display and street lighting during nights. Each branch will work as per assignment and in this way a single structure placed on the street will perform multiple roles.
Based on solar power technology, photovoltaic (PV) directly convert the sunlight into electricity by photoelectric effect. The entire structure is based on solar power, making the design eco sustainable and completely self sufficient. this will not just save fossil fuel generated power but also reduce commotion on the street.
The young, upcoming architect Xabier proposes to combine renewable energy into one, in order to make it easily transferable as well as economically viable. this integrated system can be transported and installed easily. at the same time the cost of production as well as running the system is cheap as it is based on solar power and also self reliant.
Urban Tree, ecological design proposal was one of the finalists in the design competition organized by the solar cluster association of Nevarre, held on October 2010. The cluster comprising of 12 renewable energy companies is promoting solar energy based design.
Efforts are on to promote such futuristic designs, so that dependency on non renewable sources like, coal and petroleum can be reduced. Solar, wind, and hydro powers are becoming increasingly viable alternative energy sources as they are perennial, renewable, and ecologically healthy. this design ensures one such option for time to come. Architect, Xabier’s urban tree is futuristic as well as ecologically self sufficient and promises great scope for innovations of tomorrow. Thus, his effort has to be appreciated and promoted.
on December 1st, 2011% ![]()
Are you at the stage where you are just sick of paying a power bill every month? let me tell you, there is free electricity for your home all around you. You can build and install it yourself, and it costs next to nothing if you go DIY.
Creating a solar panel or wind turbine is actually much simpler than many people realise, I believe if everyone knew how simple this was the amount of solar panels we see in our neighbourhood would vastly increase.
A solar cell in itself will only take about an hour to make, a solar panel setup for your home can be completed within about three days. if you consider the difference between setting this up yourself, or paying vast amounts for someone to do it for you. with the same result, it really is a no brainer.
I am very much a fan of being self sufficient, I grow as much fresh produce as I can for my family, and I generate as much power as I can for my house. I’m not at the mercy of any power company and if there is a power cut I won’t be affected.
To be honest I am completely at a loss as to why more people don’t do this, there really are no disadvantages that I can see. if you can provide yourself and your family with something necessary for your well being, that is free, why would you instead choose to pay someone else for it?
I have heard that in some states you even receive money for putting excess power you generate back into the grid. at the very least get your meter running backwards for some nice credits if you actually do run out of power and need to buy some more from the power companies.
The other consideration is your carbon footprint, now this is probably a hot topic and one I am not sure I should actually touch. However, again you have nothing to lose except some well earned freedom from your power bill.
If you know your way from one end of a hammer to the other, you should be fine to complete this installation, just ensure when you take on this type of project that you follow a professional guide that covers all aspects of the installation, free information downloaded from the internet could potentially be misleading or incorrect.
Creating your own electricity is a fun rewarding DIY project if nothing else.
on November 30th, 2011% ![]()
Installing solar photovoltaic energy panels is not only a great way to reduce your annual energy bills but its also environmentally friendly and will help reduce your carbon footprint. Installing solar energy panels through the government feed in tariff is a great way to benefit from a readily available natural resource that will not generate any pollution when being converted into electricity. Solar energy installations are part of the wider green movement that contributes to a reduction in greenhouse gas emissions and will reduce global warming, protect the environment and help protect the planet for future generations.
How it works
PV Solar panels (Photovoltaic Panels) generate more electricity when exposed to direct sunlight.
For this reason installations in the UK should be facing South to some degree. to maximise exposure to light it is necessary to ensure that trees and shrubs do not shade the panels from the sun.
The number of PV solar panels installed depends on the type of panel and on the amount of electricity to be produced. Each Kilowatt of electricity requires on average about 3 panels. Panels can be mounted on roofs, walls or other buildings or structures.
How PV Panels power a house
When light hits a photovoltaic solar panel electricity is generated in the form of a direct current (DC). An Inverter converts this current to alternating current which is then used to power the building.
When the amount of electricity generated is less than what is needed to power the building it is supplemented from from power from the National Grid. when more power is generated than required to power the building,the excess is fed back into the national grid.
The Sun does not need to shine in order for photovoltaic panels to generate power. The panels will produce electricity during daylight hours, but will cease to produce electricity at night. Power will be supplied from the National grid during the hours of darkness at night.
The benefits of installing solar energy panels
• Solar energy is not only sustainable, it is renewable and this means that we will never run out of it.
• we can generate our own source of electricity via solar panels, so we need not be dependent on the public utility companies and their price structure.
• Once installed solar energy requires little maintenance.
• Choosing solar energy creates jobs. it is a growing industry and people are continuously seeking certified solar training programs so they are eligible for hire.
• If the solar system creates more solar power than used most electric companies will provide credits or write a check at the end of the year to the homeowner for the additional power generated.
• Solar electricity power plants and personal solar panels produce zero emissions and make no adverse mark on the environment.
Investing in solar photovoltaic energy panels for your home is a great way to significantly reduce your energy costs as energy providers continually increase their theirs. it is also a great investment for the future that will help you financially and environmentally in the future.
on November 30th, 2011% ![]()
In “5 stocks for the solar surge,“ Jim Jubiak at MSN Money lays out some interesting groundrules for taking advantage of the downturn in solar to buy companies on the cheap. Jubiak identifies first Solar (FSLR), Trina Solar (TSL), SunPower (SPWR), Yingli Green Energy (YGE), and Suntech Power (STP) as his top picks. These companies have the “deep pockets” that will generate confidence in their survivability and, accordingly, a concentration of customer orders and market share. Jubiak prefers to wait a year or two for a shakeout to make likely winners more apparent. this strategy will make even more sense if European sovereign debt woes plunge the global economy into a recession in 2012. (Existing solar investors can consider some related hedges).
My prime reason for remaining interested in the solar industry is that parity with electrical grid production is imminent. In some parts of the southwest U.S., first Solar should reach price parity with the conventional electric grid as early as 2014. Moving beyond a dependence on subsidies remains a key component of FSLR’s market strategy. Jubiak notes that the European Photovoltaic Industry Association predicts grid parity by 2015 for Italy, Spain, Germany and France. Healthy profits await those companies that can survive until parity (although profitability per company will likely be a lot lower than the previous solar boom).
Price parity with the convention grid will only help the survivors in the industry. to me, one necessary component to survival is acknowledging that the existing business cycle requires strategies for survivability. after a wave of reassurances from first quarter results even as concerns mounted of industry over-capacity I lamented:
Just about every reporting company is sticking by full-year guidance even if first quarter results came in under expectations or second quarter results are expected to be on the low side. all companies remain essentially full-steam ahead on aggressive capacity expansions.
This combination of news is a bit troubling. The implications could be: 1) these companies will eventually engage in vicious price wars in order to meet shipment guidance and perhaps try to push more product to hit revenue targets (while killing margins), and/or 2) these companies will start revising guidance downward for the full-year in the next earnings cycle. The sell-offs in solar suggest the market is anticipating some combination of both.
BTU International (BTUI) – a global supplier of advanced thermal processing equipment and processes serving markets in solar cell, nuclear fuel and fuel cell manufacturing as well as electronics assembly and semiconductor packaging – has been one of the most revealing indicators of industry conditions and one of the most responsive. BTU International (BTUI) followed a dire warning in May with this note in August:
We believe that the pause in capacity expansion in the solar industry is likely to continue through 2011…The worldwide slowdown in the solar marketplace has impacted our outlook for the year and our near-term revenue will be weighted towards our electronics products rather than solar products, with revenue in the $17 to $18 million range and somewhat lower gross margins than the previous quarter. we are encouraged by the recent results of our latest generation solar products and maintain strong confidence in our role in the future of the solar marketplace.
Earlier this month, BTUI announced in its third-quarter earnings report that it will lay off employees amidst a worsening capacity outlook:
Our quarter was clearly affected by the slowdown in the solar industry that has impacted all equipment suppliers. As a result, we took the difficult step of reducing our permanent and contract staff, primarily in the United States, from June 2011 levels. Sales reflected solid contributions from our electronics business which delivered the majority of our major systems revenue for the third quarter…
…we foresee that the pause in capacity expansion in the solar industry is likely to continue into the first half of 2012.
Unfortunately, I did not respond to these concerns more aggressively. In may, I eagerly looked forward to a buying opportunity “…later in the year assuming the cycle-related selling has finally exhausted itself, perhaps by late summer or early fall.” The sell-off has far from exhausted itself; it has intensified. Jubiak’s plan to wait further is more than reasonable under the circumstances.
Financial health is another key to survivability. with the remaining solar-related earnings reported last week, I am updating my chart of debt-to-equity ratios for solar companies. (I will provided some highlights from key earnings reports at a later date starting with GT Advanced Technologies (GTAT). The debt-to-equity ratio measures a company’s leverage. The higher the ratio, the greater the financial risk. In a downturn, the company may not generate sufficient revenue and earnings to meet its debt obligations, exposing a high-risk company to bankruptcy.
The chart below shows debt-to-equity ratios versus the year-to-date price changes for select solar stocks where bubble size represents the cash/share as a percentage of price/share (as of Friday, may 20, 2011). As a point of reference, JK Solar (JKS) has a cash/share that is 125% of its price/share. this measure typically helps identify potential “value plays.” Large values have less meaning the higher the debt-to-equity ratio. Energy Conversion Devices (ENER) dropped off the list as its total equity is now negative (debt-to-equity ratio is -11.60). Evergreen Solar was the last solar company to go negative, and it is now bankrupt. Similar to 6 months ago, the solar companies cluster between respectable ratios of 1.0 to 2.0. The entire field has shifted sharply to the left as most solar companies have lost 60% and more in value this year. LDK Solar (LDK) continues to stick out with the worst debt-to-equity ratio as well as a relatively low amount of cash (64% of share price). GTAT made the largest improvement dropping from a debt-to-equity ratio of 6.1 to 3.5. Finally, FSLR continues to have the lowest debt-to-equity ratio (0.42) with DAQO New Energy Corp. (DQ) closely behind at 0.55.
(Click chart to expand)
Debt/Equity vs Year-to-Date Price Change for Select Solar Stocks (November 25, 2011)
List of companies:
CSUN: China Sunergy co. Ltd
DQ: DAQO New Energy Corp.
FSLR: first Solar Inc
HSOL: Hanwha SolarOne co.
JASO: Ja Solar Holdings co. Ads
LDK: LDK Solar co. Ltd
SOL: ReneSola ltd.
GTAT: GT Advanced Technologies
STP: Suntech Power Holdings Company ltd.
TSL: Trina Solar ltd.
WFR: Memc Electronic Material
YGE: Yingli Green Energy Holdings co.
Six months ago, there was no correlation between the debt-to-equity ratio and year-to-date price performance. In fact, it was slightly negative at -.16. Now, this correlation has swung positive to 0.21. As the downturn deepens, I expect this correlation to continue to strengthen. The current relationship appears to support Jubiak’s early picks of YGE, SPWR, TSL, and FSLR. STP is marginal. I will continue to monitor this chart in 2012.
Finally, note well that nearly all these solar companies have extremely low valuations. Price-to-book (P/B) and price-to-sales (P/S) ratios are well below 1, and forward P/Es, where positive, are in the low single digits. However, these ratios are less helpful when revenue and earnings are still in steep decline and margins are likely to turn negative. As usual, first Solar has the highest valuation of the manufacturers with P/B = 0.9 and P/S = 1.3. SPWR has the highest forward P/E (15.0). For comparison, FSLR’s forward P/E is a paltry 5.4.
Additional Explanation of data:
I used Yahoo!Finance for cash/share. I calculated debt/equity as total liabilities/total shareholder equity using balance sheets reported by Yahoo!Finance for U.S. companies and directly from the financial statements for foreign companies (CSIQ, CSUN, DQ, HSOL, JASO, JKS, LDK, STP, TSL, and YGE).
Disclosure:
I am long FSLR, TSL, GTAT, SOL, LDK, JASO. I am also long FSLR puts
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