Solar3D Sees Evolving Solar Provider Business Model
Studies Show Unsubsidized Solar Energy Production Approaching Grid Parity and That System Ownership -- Not Leasing -- is Most Advantageous to the Customer
Marketwired
Solar3D, Inc. October 1, 2014 3:30 AM
SANTA BARBARA, CA--(Marketwired - October 01, 2014) - Solar3D, Inc. (SLTD), a leading solar power company and the developer of a proprietary high efficiency solar cell, commented today on the results of a recently conducted analysis indicating that renewable technologies, including solar, are growing increasingly competitive with fossil fuels.
The new cost analysis study conducted by Lazard, a financial advisory firm, finds that "Over the last five years, wind and solar PV have become increasingly cost-competitive with conventional generation technologies, on an unsubsidized basis, in light of material declines in the pricing of system components (e.g., panels, inverters, racking, turbines, etc.), and dramatic improvements in efficiency, among other factors."
While many solar companies continue to market expensive solar leasing systems to residential and commercial clients, Solar3D and its operating division, SUNworks, promote ownership advantages as well as cost-efficient leasing programs. The chief principal behind the strategy is that, as the cost of solar continues to fall, the cost to the customer falls as well. This emphasis on customer and client services stands out among competition seeking greater margins and increased interest charges despite the product becoming cheaper. A recent article points out that SolarCity's power-as-a-service model is provider-centric -- not customer-centric -- with no incentive to share cost reduction savings.
"We see falling solar system costs not as a means to drive revenue, but to lower the cost-barrier so that more people can afford to buy solar systems without any of the leasing gimmicks," said Jim Nelson, CEO of Solar3D. "As the cost of solar continues to fall, the solar leasing model lead by big financing companies like SolarCity is becoming less attractive. Instead of being locked into a 20-year solar leasing contract where the price is adjusted up every year, customers can now easily buy their own systems with a breakeven of 5-7 years. The rapid growth of our SUNworks business is a testament to this fundamental shift in the industry."
"We appreciate the leasing companies for expanding the solar market, but we don't see leasing as a sustainable business model for solar power." Nelson added.
Solar3D is focused on the development of next generation solar technology and on the design, installation and management of solar systems for agricultural, commercial, and residential customers, delivering hundreds of 2.5 kilowatt to 1-megawatt commercial systems, and with the capability to deliver systems as large as 25 megawatts.
About Solar3D, Inc.
Solar3D is a leading provider of solar power solutions and the developer of a proprietary high efficiency solar cell. The company's SUNworks division focuses on the design, installation and management of solar power systems for commercial, agricultural and residential customers. SUNworks is one of the fastest growing solar systems providers in California and has delivered hundreds of 2.5 kilowatt to 1-megawatt commercial systems and has the capability of providing systems as large as 25 megawatts. Solar3D's technology division is developing a patent-pending 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity. The Solar3D Cell collects sunlight from a wide angle and lets light bounce around in 3-dimensional microstructures on the solar cell surface. The Company's mission is to further the widespread adoption of solar power by deploying affordable, state-of-the-art systems and developing breakthrough new solar technologies.
To learn more about Solar3D, visit our website at www.solar3d.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
Contact:
Press Contact:
Jim Nelson
jnelson@solar3d.com
805/690-9000
