Amid the enthusiasm, it's important to keep this
latest twist in the solar saga in perspective. Solar
energy of all kinds fulfills less than 0.1 percent of
electrical demand in the United States, and affordable,
commercially available panels have hovered near 15
percent efficiency for years. Despite the recent burst
of corporate enthusiasm, the prices of solar modules are
expected to continue inching down at just 5 percent a
year, and grid parity—the point at which solar panels
can compete subsidy-free with utilities—isn't expected
until 2015 at the earliest.
It's too soon to say whether these costly corporate
installations will go down in history as the first of a
limited series of impulsive, feel-good publicity moves
by tech start-up billionaires, or as the beginning of a
longer-term movement that will help sustain the market
for solar photovoltaics during the next decade and
enable solar to finally become cost-competitive. One
thing is certain: the movement will flourish only to the
extent it is nurtured by a complex patchwork of economic
and bureaucratic conditions. Of the 9509 new grid-tied
solar installations in the United States in 2006, which
totaled 101 MW, 70 percent of them were in California.
And that's not just because it's sunny. As it turns out,
California subsidizes solar in a particularly generous way.
Even without
subsidies, solar panels may have found their
logical home, at last, in the commercial world. The
nice, flat roof design on most commercial buildings,
unlike the pleasingly angular but less workable
residential roof, is one obvious advantage. But some of
the most compelling reasons are intangible.
“It's a key part of attracting and retaining
employees,” says Doreen Reid, a senior associate at The
Climate Group, a London-based nonprofit that helps
companies reduce their carbon emissions. “Students
coming out of college are more conscious of a company's
environmental image.”
Robyn Beavers, Google's corporate environmental
programs manager, confirms the transformative power of
solar cells. “I've had so many people e-mail me and say,
‘This is why I love working at Google' and, ‘How can I
install solar at home?' ” says Beavers, who presided
over the installation project. Google's solar enterprise
is part of a larger mission to promote the growth of
solar energy, she says. Google founders Sergey Brin and
Larry Page have invested heavily in Nanosolar, a
start-up that specializes in thin-film solar cells.
(Both declined to be interviewed for this article.)
For its rooftops, Google chose Sharp modules capable
of generating 208 watts each. The polycrystalline
silicon cells average 12.8 percent module conversion
efficiency. Because solar panels produce dc current,
each system requires inverters to change the current
into usable ac, and Google used a set of utility-grade
inverters with an average of 96 percent conversion
efficiency made by SatCon Technology Corp. of Boston. It
partnered with EI Solutions, a solar project developer
with headquarters in San Rafael, Calif., to do the
electrical design work.
Google won't say how much the whole project costs,
other than to indicate that it expects to recoup its
investment in five to seven years. Nonetheless, experts
estimate that a solar installation costs between US $3
and $5 per watt in California, and between $6 and $10
per watt in the rest of the United States after
factoring in local and federal rebates for the cost of
the system. (According to the Northern California Solar
Energy Association, the average cost of installing large
systems in the Bay Area in 2006 was $8.58 per watt
before rebates, on par with national
figures.) Using
data from California's Solar Initiative program and
based on a $2.80-per-watt incentive rate, Google likely
retrieved about $4.5 million from California on a
project that in total probably cost more than $13
million. Federal tax breaks through the Energy Policy
Act of 2005 also help to burnish the appeal of what is
still, for many, a prohibitively expensive system.
For other companies, an important piece has been added
to the picture for solar. Where research and development
have so far failed to slash the price of solar, clever
financing schemes have filled the breach. Google's solar
project, for all its trendy impact, was financed the
old-fashioned way—with cash. But customers without
billions of dollars in liquid reserves tend to shy away
from such a move.
Rather than requiring that customers buy all the
equipment for an installation, which can run into the
millions of dollars, solar service providers are
persuading customers to sign agreements that in effect
turn those providers into miniature utilities.
The office-supply company Staples was among the first
to pursue such a scheme—in 2004 with SunEdison, a
prominent Beltsville, Md., solar electricity service
provider, for a 280-kW installation on two of its
California warehouses. The solar installation covered
about 10 percent of the facilities' electric loads.