Sharp Corp. Sees Shiny Solar Business in Florida
Date: 20-Jul-07
Country: US
Author: Timothy Gardner
"Florida has the same sunshine capability as California," Ron Kenedi, vice president for Sharp's Solar Energy Solutions Group, the world's largest solar panel manufacturer, told Reuters in an interview.
"Only one area is better, the southwestern (US) desert. Other than that you are in the prime real estate for the solar game," he added.
Sharp currently sells about 65 percent to 70 percent of its solar panels in California, the country's most populous state. Kenedi estimated that less than 5 percent of its panel sales are in Florida, the country's fourth most populous state.
Florida's Gov. Charlie Crist signed several executive orders concerning greenhouse emissions last week, one of which seeks to force utilities in the state to generate 20 percent of their power from the sun, wind and other renewable sources by an unspecified date. He also signed mandates on tough greenhouse emissions reductions.
Kenedi said Sharp is working with Florida to provide a package of incentives for solar power that could help growth of the alternative energy source.
Florida solar power would blossom if the state allowed incentives for installing panels on new homes in addition to existing homes.
The incentives could be powerful, he said, because the cost of systems would be wrapped into the mortgage of new homes, which could potentially be more appealing to consumers than the large cost of placing panels on existing homes. Building the systems into new homes also cuts installation fees.
Florida should also mimic California's long-term incentive program which offers continuous benefits to solar customers that last more than a decade, Kenedi said. He said year-by-year incentives in some states cause potential customers to hesitate to buy the alternative source of energy.
Solar would do well in Florida if it also set up a robust renewable energy credit market such as the one in New Jersey, the country's second largest buyer of solar panels after California.
Beyond Florida, Kenedi expects other big states to increase incentives for solar including New York, Arizona, Texas, Maryland and Pennsylvania.
With the new US markets, as well as potential for more sales in Latin America, Kenedi said there was little danger of a solar panel supply glut once supplies of solar cell feedstock refined silicon bounce back in coming years.
"It will be a very, very long time before all the demand is met, if it ever is," he said.