Green Lending

[Squandered Halfpints]

I have recently spent a lot of time researching the financing of Photovoltaic systems for residential homes. As solar energy gets more efficient and cheaper, I see no reason why it won't be used as the power source for EVERY residential structure sometime in the future.

I have found a lot of companies that do "green lending" but it doesn't look like they are capitalizing on this market. This may be because solar energy is only in the beginning stages of improvement.

I think I would like to delve into this field, but on this business side rather than the tech. side. Specifically the financing/marketing/selling of residential PV systems. I am currently getting my B.S. in financial services, and I'm going to focus a great deal of my studies towards lending.

Residential PV systems are marketed very little, and a largest part of our population don't have these systems running the power in their home - though many could afford it, and they would eventually save a huge some of money when the system is paid off, and gas prices continually spike higher and higher.

Can anybody please give me suggestions as what would be the best way to grasp a hold of this specific market? Should I get a job for one of these "green lending" companies that are already in existence? Do you think its possible to compete with these companies if I were to start my own firm sometime in the future?

[GreenUp]

Hey!
in my opinion, get some experience in the field and right after start your own "green" firm. the opportunities are incredible and the whole "green" industry is valued at billions and billions of dollars!
I agree with you that pretty soon we'll have most of residential buildings install their PV systems and the idea with lending is terrific!!!

[jasaunders]

The problem with residential solar systems is that they are big, bulky and incredibly ugly. Until either consumers accept big black panels all over their roof or technology can produce silicon wafers that can generate a higher current per square inch I really don't see consumers adopting this. Right now it takes over 20 years for most consumers who install solar panels to break-even and it is such a significant upfront cost, even with tax credits given in many locations.

You may be better to deal with businesses. In Asia, especially Japan, solar cells on roofs and the tops of buildings are much more common than here in the United States. Use that as a case study.

[tazman9r]

Can anybody please give me suggestions as what would be the best way to grasp a hold of this specific market? Should I get a job for one of these "green lending" companies that are already in existence? Do you think its possible to compete with these companies if I were to start my own firm sometime in the future?

First, set aside what you think about the benefits of being green (because that is really a marketing side point right now, however true or not it may be) and understand that energy companies are mammoth sized corporations that employ thousands of employees and have strategic government sanctioned monopolies. This is your competition, and it is in their best interest for the public to believe that "solar is a nice idea, but not really viable". Like jsaunders said, big black ugly panels on your roof [that aren't very efficient] are what the public think of when they think of solar panels. So part of your job will be to learn everything you can about the use of solar, and specifically how to build solar panels on homes that are not big ugly inefficient panels, and educate people about the "new reality" of using solar. Then you'll need to learn solutions for solar panel problems, which means anticipating them before they are problems. Solar panels that are built to resist high winds, for instance. There will be few aspects that you can pass off to others, as you will probably be seen as a snake oil salesman at first.

And then there is the little thing no one really knows. The energy company is probably gonna charge a person for not being "plugged in" to their matrix, due to the fact that even if those power cables are not used there are still power cables running to the house.

"Being Green" has to be about more than doing things that are basically gestures in energy efficiency. Having a house and car that are truly oil and coal independent (meaning gasoline and electricity from traditional power companies) means that they aren't even connected to the system. This means your first customers will be people building custom homes that are confident enough in your system that they do not pay to have power cables run to their house. Be careful, because there may be a construction clause that stipulates automatic inclusion of a home their district. Once the home is built, you must be prepared to continue to service the units as necessary so your customers experience the minimum of power interruption. See, electricity is seen as a given these days, and not something you have to work at or discipline yourself to have, especially if you are wealthy enough to build a custom home. If you can be as effective at "sucking the headache" out of electricity as the power companies, you'll have a chance. You'll find that this is a big and expensive process that requires a large employee base, so if you stay with custom homes at first, you can build on your success and build your company.

Just know that this will be way bigger and more complex than you think.

[warrensway]

They are still relatively expensive too which you did touch on, but i think one day they will work probably in about 10 years.

[Squandered Halfpints]

I know right now residential PV systems are perceived as being big bulky black ugly sob's, but this will eventually change. And it won't be long. It will def. be in my life time. With the solar tech. like nanosolar, and many others I'm probley not aware of, the small attractive affordable and efficient residential PV system has to be coming.

As for the houses that are already "on the grid." They will not be charged a prem. It is actually the exact opposite. I have talked to somebody who actually has their residential PV system hooked up to the grid. In essense, their meter is actually running in reverse, and the power companies are paying them back. The power companies aren't creating this energy themselves, they are just another business getting their sources from an overpriced supplier. Here, the residentail home owner is the supplier.

I could see the residential PV system world not coming to fruition for some years, but this is a good thing. I'm reletively young, and it will give me some time to gather the knowledge and resources I need to become a success. Yes, its very complex, and I'm not making it out to be easy at all. But I'm not going to do this by myself. I need a team of experts working with me. I believe it would be very possible to become a top contender in this market if I begin NOW. But before I do, please let me know if you see any other flaws in my plans, or any suggestions as to where I should focus most of my time (starting the com. or building my PV/financing knowledge)

[tazman9r]

As for the houses that are already "on the grid." They will not be charged a prem. It is actually the exact opposite. I have talked to somebody who actually has their residential PV system hooked up to the grid. In essense, their meter is actually running in reverse, and the power companies are paying them back. The power companies aren't creating this energy themselves, they are just another business getting their sources from an overpriced supplier. Here, the residentail home owner is the supplier.

That is terrific news. It will be interesting to see what happens when the trend is that everyone has this situation, because the money to pay the power company employees has to come from somewhere.