Explaining Southern California's economy

Solyndragate: The problem with solar isn't growth, it's scale

At KPCC's Pacific Swell blog, my colleague Molly Peterson has a snappy take on the aftershocks of Solyndragate: SolarCity isn't likely to get a $274-million DOE loan guarantee is was counting on to install solar panels at more than 100 U.S. military bases.

In the post, she refers to a memo that was sent out by the Sierra Club, supporting the solar industry. Here's a taste:

Earlier this week, The Solar Foundation, in partnership with GreenLMI and Cornell University, released its National Solar Jobs Census 2011.  The Census reported incredibly impressive growth in the solar industry – nearly 7% from August 2010 to August 2011.  The solar industry’s growth is even more impressive when compared with the fossil fuel energy industry, which shrank by 2%. 

No one disputes that the solar business is growing. But as Solyndra found out, growth isn't always enough. You also need scale. Because without scale, you're going to have much more trouble attracting high levels of outside investment — enough to match the many billions that governments like China are throwing at their solar industry. And in Solyndra's case, you need to ramp up sales to the point where you can overcome falling prices driven by Chinese manufactures flooding the market with cheap solar panels.