Bright Ideas: Charge for Solar Services, Not Solar Panels

Posted on 24 June 2008

The problem with solar and other green technology is that they’re expensive - the economies of scale and distribution have not quite reached a price point of mass consumption. Solar panels for example, while becoming more efficient at $1/watt, is still a pricey option for homeowners. Other costs include the panel itself and installation.

If you believe that this gap won’t be overcome anytime soon, then you’ll probably like the idea of solar services - a new business model for the green energy industry.

In a nutshell, instead of paying for the product, you’re leasing the energy. SolarCity for example, touts “zero upfront costs”. A Reuters headline suggests “Solar power for less than your cable bill“.

The market doesn’t like too many players in such a small niche however, and determining which of these start-ups (Sungevity, SunRun, Solar City, Recurrent Energy) can best execute still remains to be determined. Our bet at least in the short term is on SunRun, which recently received a $12M infusion of capital and Recurrent Energy, a nimble player already selling solar energy to the federal government.


Whoever dominates, solar services, is one bright idea we’d like to see in the spotlight.

Related: SunRun Gets $12M from Foundation Capital. (Venture Beat)

picture: ad for SolarCity

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steven - who has written 10 posts on The New York Herald..


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