Experts: Solar Has A Future
Bankruptcies of solar energy component manufacturers such as Marlborough-based Evergreen Solar and California-based Solyndra are not indicative of the future of the industry, several experts insisted today at an energy summit in Westborough hosted by the Worcester Business Journal.
"Some companies will win and some companies will lose," said Jim Walker, director of solar grid projects with Framingham-based energy services company Ameresco. "It's the nature of the beast of early development."
Walker was not alone in his bullishness on the solar industry. Cynthia Arcates, owner of Boston-based PowerOptions, said bankruptcies may draw attention, but they are part of a "natural shake-out" of what she called "a very robust market."
"Bankruptcies are not indicative of market desires," Arcate said.
While the solar industry may be sound, there are regulatory risks, panelists said. Some federal tax credits for solar companies are unlikely to be renewed because some politicians are skeptical about solar. And Arcate said some developers will not base project budgets on the assumption they will receive solar credits for more than five years.
Utility customers who generate excess energy can receive credits for it that sell on a renewable energy market. In Massachusetts, that market is strong right now, with credits trading at near the top of their ceiling set by state regulators. But such markets have failed in several other states that did not guarantee a "floor," which ensures surplus power generators will be able to sell their credits if the market floods.
Ratepayers here pay extra on their utility bills to pay for the profits made by those selling surplus energy.
Some companies argue that the state-imposed cap on how much energy can be converted to credits is hindering the explosion of the solar market, Arcate said.
"Who do they think is going to pay for all that?" she said.
Asked when solar energy might hit the market on a broader scale, Walker said panel technology takes time; it must be tested for years and manufacturers must be able to prove the technology to end users.
"This isn't software," he said.
To view tweets from today's event, click here.
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