If your business evaluated solar power as a way to reduce costs more than a year ago and rejected it, it is time to look again, says Jason Loyet, CEO of Solar Site Design.
Solar Site Design has a national network of independent contractors who work as solar originators. The company also has a network of client contractors who pay for the opportunity to bid on the projects the originators find. This competitive marketplace is helping to accelerate projects and reduce the cost of solar installations.
Scott Hill, President of Clean Energy Advisors, explains the motivation for their investment. “We invested in Solar Site Design because we believe in Jason and in his business model. Commercial and Industrial companies need a place they can go to quickly understand if installing a solar array can be a smart business decision. He is also creating a platform where companies providing solar products and services compete for each project. These factors are bringing down costs and allowing Solar to complete against other forms of energy, which is something we’re very passionate about.”
The result of the acceleration in solar and the falling costs, Jason says, is installed costs of solar power that are years ahead of recent expectations at under $2.00 per watt. That means that in most parts of the country, a business can install solar and save enough to on utility bills to justify the expense.
While the industry has long relied on innovative financing to make projects pencil, with the current 30 percent tax credit, companies can now afford to buy the solar panels outright with traditional financing sources. Banks, Jason says, are now experienced in financing solar projects.
Typically, projects today are built “behind the meter” in that the plan is not to sell power back to the utility, but only to produce enough power at peak production to meet the business’s own need for that power at that time. The solar power becomes the primary power source and the utility is the secondary power source.
In most states, commercial businesses can’t sell power back to utilities at the same rate they buy power. By eliminating any low-priced sale of solar generated power to the utility and using 100 percent of the power produced to reduce high priced power purchased from the utility, the financial returns are improved.
Jason notes, too, that the next step the market is preparing for is the addition of storage so that companies can go ahead and produce extra power at peak production times and use it later, rather than relying on the utility. In such a scenario, the utility becomes a backup provider of power rather than a secondary power source. This near-future scenario is intriguing to environmentalists and CFOs alike.
Looking longer term, Jason sees a bright future for solar. The cost of extracting fossil fuels is unlikely to go down, meaning that the cost of generating power from fossil fuels will likely rise. He predicts an average rate of inflation of 3 percent for fossil fuel energy. Given that solar is already cheaper than fossil fuel generated power today, the spread is likely to grow dramatically in relatively few years.
The bottom line is that the economics of solar power make better sense than ever before today. The 30 percent Federal tax credit creates an incentive for companies to look at solar projects in 2017. Fossil fuel inflation combined with declining costs in solar will quickly reshape our global energy mix.
More about Solar Site Design:
Since winning the U.S. Department of Energy’s SunShot Catalyst Award in 2015, Solar Site Design has focused on solving the next chapter of driving down customer acquisition costs for Commercial and Industrial solar energy projects. After a year of software development, we are proud to announce the newest enhancement to our platform: Solar Site Design Commercial Marketplace. For three years, Solar Site Design has become a leading recruiter and trainer of Nationwide Commercial Originators. Our Originators have deep relationships in their local market and are able to open doors wide open on highly qualified C&I projects. In addition, our Originators are trained on collecting extensive data at the site through our innovative platform available on Android and IOS. SSD aggregates the project data entered by service professionals (referral agent), connects the projects to networks of contracted fulfillment partners, thereby reducing customer acquisition costs by up to 50%
Jason Loyet is an accomplished solar industry entrepreneur, having founded and built three solar companies since 2005. His first company solved bottlenecks in importing solar equipment and streamlined mainline distribution to solar installers. In 2009, he founded and built a $3 million company that provided wholesale solar supply, sales and marketing services to electrical and roofing contractors throughout the United States. In 2013, Mr. Loyet leveraged the powerful capabilities of mobile phones to build an easy way for traditional contractors to add a revenue source to their bottom line by playing an active role in the solar industry. Hence, Solar Site Design was born. Solar Site Design is a collaborative, cloud-based platform that connects highly-qualified solar project referrals to leading solar companies to drive down customer acquisition costs. Our proprietary business process is designed to reduce the solar industry’s customer acquisition costs by up to 50%. Solar Site Design was chosen as a winner of the U.S. Department of Energy’s SunShot Catalyst Program in May of 2015. Prior to entering the solar industry, Mr. Loyet founded, developed and sold two software companies; a video-streaming service and a photo-sharing platform. Jason is a member of the Social Venture Network.
Never miss another interview! Join Devin here! Devin is a journalist, author and corporate social responsibility speaker who calls himself a champion of social good. With a goal to help solve some of the world’s biggest problems by 2045, he focuses on telling the stories of those who are leading the way! Learn more at DevinThorpe.com!