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Finding the Apple Computer of Solar Power

By Joseph McCabe, PE
January 17, 2011 | 5 Comments

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Have you noticed the corporate pitches that compare their products to iPhones or iPads to try and force the feeling that they are "like Apple?" Bill Ford just pitched the Ford electric car in this manner. If Apple is the gold standard, the question becomes, what solar company is closest to being just like Apple? I think the answer is none, at least not yet.

The Apple Model

Apple has a design culture that attracts design professionals to their product. They also have a completely vertically integrated product where the case, graphical user interface (GUI), input devices, high resolution screen and system packaging is all designed around the Apple culture. They have their own proprietary operating system and a steady stream of income from content sales off iTunes.

An analogy to some of Apple’s business strategy might be solar industry business plans, however these are innovations which typically are not unique or proprietary. An example is when SunEdison (now owned by MEMC NYSE:WFR ) institutionalized third party financing. Lots of companies have followed suit.

Solar Companies Today

Grid tied photovoltaics (PV) aspires to be a “set-it-and-forget-it” kind of product, not needing the interaction of a GUI and operating system. Smart grid integration could enable PV to have more of an operating system value proposition, but that hasn't happened yet.

As far as design, I don't think there is a company that comes to the solar professionals mind when considering who is first-in-class with design. Sunpower (NASD: SPWRA) has the black background module to match their technological improvements in back contact grids along with the highest power module efficiency. Some thin film PVs are better than others at being monolithic black and not fading over time, but these aren't great design features. Flexible thin film amorphous silicon like UniSolar (NASDAQ: ENER) can be seen as looking different from glass based PV modules with aluminum frames and structures, but possibly due to lower efficiencies have not created a robust market. Design features will someday separate specific companies within the solar industry, but that hasn't happened yet.

First Solar (NASDAQ:FSLR) just announced the purchase of the tracking company RayTracker Inc., a company originating out of Energy Innovations (Founded in 2000 by Bill Gross) and IdeaLab. Trackers is where the most appealing designs have been proposed in the past. If you have the time and are interested, check out some of the historical patents on solar trackers. Some wild concepts came out of the funnest bunch of innovative thinkers in the 80's and 90's, mostly because at the time the thought was if you build the best sun tracker, the world will reward you. RayTracker Inc. has now been rewarded for the many years of incremental improvements in their technology and execution of their business plan.

There are a few companies that have tried to package up solar systems into compelling designs. Akeena Solar ( NASDAQ:WEST ) has complete systems solutions with some installation labor savings but no real unique design features. Other companies like Applied Solar (used to be Open Energy Corp) and Lumeta (owned by DRI ) have been integrating PV modules without metal structures directly into roofing for some years. Many solar electric carports are coming to the market with daily news announcements for larger and larger solar carports installations. Envision Solar ( OTC:EVSI ) had one of the first architect designed solar carport s, but these companies have yet to capitalize on design in an Apple way.

Solar Companies Tomorrow: Purpose Solar

The future of solar has the potential for design and operating systems to be combined in an Apple way. I call it Purpose Solar, where the solar system provides a needed service like clean drinking water (direct current PV powered reverse osmosis), water pumping, air-conditioning / refrigeration, street lighting, ect. These have traditionally been called off grid applications, not in the limelight of our industries alternating current grid connected focus. But at a consistent $90 a barrel for oil, and lower cost of PV modules, off grid is the place where PV will be taking a larger and larger portion of the worlds energy pie. As the world realizes that an $80 barrel of oil is history, diesel generators currently used for off grid applications will be replaced by off grid PV system.

There are companies currently providing Purpose Solar systems like the PV power drinking water purification systems from World Water & Solar Technologies (privately held) and SwissINSO Holding Inc. (OTCBB.SWHN) who recently announced a healthy Malaysian sales contract and distribution agreement.

Purpose Solar will be valued by the gallons of drinking water produced, the air-conditioning comfort levels, pounds of ice, and the security from lighting, not kilowatts and kilowatt hours. Designs, operating systems and GUI's can be combined, branded and marketed for solar driven, Purpose Solar, solutions. And it is where finally a solar company can be "like Apple".

Joseph McCabe is a solar industry veteran with over 20 years in the business. He is an American Solar Energy Society Fellow, a Professional Engineer, and is internationally recognized as an expert in thin film PV, BIPV and Photovoltaic/Thermal solar industry activities. Joe can be reached at energy [no space] ideas at gmail dotcom.

Solar Energy

The information and views expressed in this article are those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on its Web site and other publications.

5 Reader Comments

Comment
1 of 5

jnshere

January 17, 2011

Interesting analogy to Apple. Another important factor is that Apple markets its products as the "cool" option, especially compared to stodgier, more utilitarian PCs. (Remember those "I'm a PC, I'm a Mac" commercials?). Why are people willing to pay more for a Macbook or iPhone when they could get a similar product for half the price? Partly because Apple makes quality phones and computers. But also largely because Apple's brand is synonymous with cool, innovation, design, etc.

I don't think the solar industry (or any other renewable energy sector) has developed a sales pitch able to convince ordinary people that investing in solar is cool, let alone useful. This is partly because the computer/software business is an entirely different animal than the energy business. Apple puts out a cool, game-changing new device every few years that millions of people can and want to afford without much fuss. The solar industry deals with still relatively expensive, uninspiring-looking panels that make the electricity needed to charge all those cool Apple gizmos. It is possible or even desirable for renewables to be marketed and packaged like computer hardware and software? I don't know.

Comment
2 of 5

ecdfan

January 18, 2011

PV solar is a commodity. Think DRAM and NAND memory, rather than "design." Only module manufacturers that are the low-cost leaders, on efficiency-adjusted basis, will survive. Right now, those happen to be First Solar and the integrated Chinese crystalline module makers. Meaning, Unisolar is already dead, and SunPower is not out of the woods yet. Akeena, Applied, Lumeta, and Envision are not even worth mentioning.

Oh, and here is a prime example of Unisolar's "design," after just two years under the Sun:

http://picasaweb.google.com/fan.of.ecd/FloridaInternationalUniversitySolarInDistress

An overpriced product that underperforms and degrades beyond belief will obviously have difficulties in a commodity market.

Comment
3 of 5

JimW

January 18, 2011

I want to buy a GreenNH3 machine to make my own green fuel at home. Now I see GreenGas.cc and GreenNH3 have joined forces and maybe I can get a machine sooner. Can you imagine if Apple and their competition (and the hackers) joined together to do good? It would be like WW2 when all of America worked together for the common good.

Comment
4 of 5

Anonymous

January 19, 2011

As the article points out, the "Apple" era of solar has not materialized yet.

I think there are good reasons for this. While solar electricity has seen a tremendous growth over the last 5 or so years, it has largely been concentrated to a few countries – mass-localisation of the market if you will.

A relentless cost-out program is the main drivers of solar currently as competition is intensifying and prices drop to mass market levels (i.e. the elusive grid parity). Grid Parity IS the holy grail because it will make solar a no brainer in a (mostly) global society concerned about the environment.

But there comes a point (of diminishing returns) at where price competition stops being an advantage and that's when design becomes a key differentiator. But it will not happen before the mass accept solar, which ironically of course would expedite the process. It's a sort of catch 20 situation: no design differentiation without a mass market and no mass market without the right approach.

I would expect to see the start of the "Apple" era in 3 – 5 years.

Comment
5 of 5

kimgerly

January 21, 2011

I think if PV can be touted as sexy, too, coolness will be inherent in the marketing. How about pink BiPV for all the soccer moms?!

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Joseph McCabe

About: Joseph McCabe is a solar industry veteran with over 20 years in the business. He is an American Solar Energy Society Fellow, a Professional Engineer, and is int... more »