January 14th, 2010 / 0 Comments
According to a preliminary Bloomberg New Energy Finance report, China’s share of the California market, in terms of supplied megawatts, has risen to 46 percent, from just 21 percent of the market at the beginning of 2009. Concurrently, the share supplied in California by American companies has declined to 16 percent, from 43 percent. Big government subsidies and incentives by the Chinese gov’t, combined with a low cost of labor (Chinese engineers out of college make about $7,000/year) have allowed companies like Suntech and Yingli to produce panels and PV cells at a fraction of the price of compeititors in other countries. Recently, Suntech Power has outlined its plan to establish an assembly plant in Arizona, both to reduce shipping costs and perhaps anti-China rhetoric among U.S. industry trade associations. Suntech has applied for a 30 percent investment tax credit from the stimulus package that applies to solar manufacturing in the United States
So if the Chinese government is subsidizing Chinese companies on the raw materials side and the U.S. government is subsidizing Chinese companies on the assembly side, how can anyone compete? Is this a zero sum game in which only Chinese manufacturers win? I don’t think this is necessarily the case. Establishing U.S. manufacturing plants will create more jobs for American citizens as well as lower the cost of overall panel production, accelerating the development of the solar industry overall. And as First Solar has demonstrated, U.S. companies can still profit handsomely with more effective technology. First Solar recently signed a large-scale deal with China for thin film PV panels. e-Solar, another U.S. company, just announced in the past week that they have landed a huge contract to build 2 gigawatts of solar thermal plants in China. So there are many synergistic opportunities available for both sides of the pond. The net result is that solar equipment costs will go down, consumers will benefit, and the solar industry will continue to flourish.
Posted by Fan Ding in Research
November 5th, 2009 / 0 Comments
As many folks don’t know, there are two clean energy bills being discussed in DC as speak. The Health Care reform has dominated the press but these bills could have a similar or greater impact on our country.
The first bill, HR 2454, the American Clean Energy and Security Act of 2009, also known as the Waxman-Markey Bill, passed the House in June 219-212. This bill aims to reduce greenhouse-gas emissions in the United States by 17 percent by the year 2020 (using 2005 levels).
A second bill that also is receiving criticism is Senate Bill (S) 1733, the Clean Energy Jobs and American Power Act, also known as the Boxer-Kerry Bill.
Both bills, summarized on the Web site GovTrack.us, plan to “create clean energy jobs, promote energy independence, reduce global warming pollution, and transition to a clean energy economy.”
Alternative-energy sources like wind, solar energy and biomass will receive funding and a focus in the bill.
Renewable sources, such as biomass — waste products including straw, dead trees, tree branches, and animal waste that can be converted into fuel, electricity, and heat — have the potential to lessen America’s dependence on oil and gas.
Posted by Courtland Weisleder in Climate, Commercial, Investment Banking, Research, Residential
October 20th, 2009 / 0 Comments
The energy efficiency and clean technology snowball is swiftly gaining speed in Southern California and nationwide with the help of many particularly the DOE. After attending a recent Clean Tech San Diego event, the speaker shared with us a bar graph. The title of the bar graph was “Clean Tech Stimulus from the DOE”. It showed 4 bars focusing on the dates 2009-2012. In 2009, it is expected that the DOE is awarding $29 billion in clean stimulus funds which represents only 15% of the total amount. In 2010 and 2011, there is expected to be over $140 billion allocated and awarded nationwide under the clean tech umbrella. Over that two year period, we will see close to 5 times the amount which was allocated in 2009. I believe that we are still in the spring training of the clean tech revolution as we determine which renewable energy sources have a realistic chance to become cost effective and scalable. Buckle up- we’re in for fun ride over the next decade!
Posted by Courtland Weisleder in Climate, Commercial, Investment Banking, Research, Residential
September 11th, 2009 / 4 Comments
We had our grand opening/ribbon cutting event last night and it was a huge success! We also hosted the Green Drinks event and some 200+ people showed up. Thanks to everyone who came and we hope you’ll join us for future events.
Our President Courtland Weisleder Cutting the Ribbon
Greener Dawn Ribbon Cutting and Green Drinks
Posted by Fan Ding in Climate, Commercial, Investment Banking, Research, Residential
