Retailers look to cash in as solar power prices plunge

According to a recent New York Times article written by Nancy Folbre, professor emerita of economics at the University of Massachusetts, Amherst, the price of solar panels has dropped some 60 percent over the past three years and the cost of producing solar energy is now as cheap, if not cheaper, than the cost of energy from nuclear power plants. So while renewable energy has had its critics, it appears that solar is becoming “a powerful environmental and economic success story.”
While 62 percent of American homeowners are interested in solar power for their residences, fewer than half realize that products have become much more affordable, according to SolarCity, the largest provider of residential solar systems in the U.S. Today, there are fewer than half a million household rooftops with photovoltaic installations, leaving about 74.5 million residential opportunities in the U.S.
Home improvement retailers were among the first to see the potential of solar. Home Depot, Lowe’s and Menards all sell solar panels and offer access to installation services online and in stores.
Yesterday, Best Buy became the first large consumer electronics chain to get into selling solar with an announcement that SolarCity would offer its services at 60 of the retailer’s locations in Arizona, California, Hawaii, New York and Oregon.
As a special promotion, SolarCity will give new customers it picks up through Best Buy a $100 gift card valid on any purchase made in the store.
- The Red Faces of the Solar Skeptics – The New York Times (tiered sub.)
- SolarCity to Offer Solar Power in Select Best Buy Stores – SolarCity Blog
- Solar on sale, almost anywhere – U-T San Diego
Do you see the residential market for solar power opening up in the next several years? What are the keys to success for retailers looking to take advantage of the solar opportunity going forward?
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13 Comments on "Retailers look to cash in as solar power prices plunge"
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I see it happening more and more. In St Croix, subsidized houses are already being built with panels on the roof. My condo association is putting them on top of our building there as well.
I’d do it in my house in Miami, but it’s unclear to me that the panels would survive a hurricane…so I’ll wait. But heck, at $300 a month for power, using our primary resource here seems like a great idea.
As the price of solar panel decreases, the opportunity for consumers to take advantage of this energy source increases. I installed solar a year ago and love watching my electric meter spin backwards. My electric car is powered for free by the sun.
Retailers are wise to look into offering solar to customers. By doing this, retailers help educate consumers about the benefits of solar, if retail employees are trained to articulate the pros and cons of solar systems. Retailers also need to partner with reputable, reliable solar providers.
Going solar is not simple and easy. Dealing with local electric companies is a time consuming test of patience. Retailers need to prepare their customers for the process or risk upsetting customers and potentially losing their business going forward.
Best Buy is smart to get ahead of this in the same way that Google’s purchase of Nest Labs makes sense. Retailers have a window of opportunity to get on the ground floor of total home solutions, the internet of things and the energy sources that will power all of it.
I investigated solar power for my home, responding to a direct mail I received. I learned that the panels on my roof wouldn’t power my home but rather the energy be sold to the grid. They may be okay…I can adjust my thinking to that, but I was hoping to also be able to power my home when my town loses power during storms…and this method doesn’t cover that at all. BTW, I live in Massachusetts.
I may not remember the time frame exactly, but 10 or 15 years ago solar panels converted only 3% of the energy provided by the sun. Today they convert 29%. I am no scientist, but it would be hard to imagine them not reaching an efficiency of 80% to 90% in another five or ten years.
For retailers, with huge flat roofs, it will simply be a dollar and cents issue. I don’t see anything stopping it.
It may take longer in the residential market, but it will ultimately be driven by new construction that integrates solar into the homes proving it out. Once solar becomes “acceptable,” it will create a landslide of conversion.
Solar ain’t (that) simple, as I’ve learned in experimenting in mountainous terrain with a cabin on a north facing slope. But it certainly is interesting.
Wind and small-scale hydro installations are also attractive, as Ian points out. And I totally agree with him on the need for aesthetic as well as economic acceptance. We just made the decision to substitute a working water wheel installation for the waterfall we were planning to aerate our trout pond. The period correct design we chose should look even better than the waterfall, and will generate plenty of electricity to run lights and appliances for the cabin.
Getting back to business, alternative energy is no different than any other shift in consumption of a fundamental commodity. Early adopters do it because they believe in, and can afford, “doing the right thing.” People in general do it when it becomes a more attractive alternative than the current standard. Where we most often go astray is in trying to artificially alter the market pricing of any alternative, whether through taxation or subsidy.
Solar Power may be cheap, but it all leads to “battery banking” which is the core of alternative energy. Retailers should look at various business models and channels already practiced in emerging markets:
The (other) question here, of course, is how will RETAILERS take advantage? I’m not sure if the reference is to selling solar or using it themselves, but regardless, I’m not yet ready to jump on the bandwagon…I just don’t see that many people eager to become DIY utilities, and I think the recent surge in gas production will forestall people from “seeing the light” of solar – so to speak – for a few more decades.
Four things must be present:
1. Easy to switch over to.
2. Convenient to use.
3. Cost less than they are presently paying for the electric or natural gas fuel sources.
4. Cost very little to purchase the equipment and have installed or recoup investment of purchase of installation within 1- 3 years.
Given how long it’s taken for electric cars, healthy food, climate change recognition, stem cell research, etc. to be accepted as science-based facts that are beneficial for ALL humans vs “liberal” issues, it could take a while. Which is beyond me…but since I’m over 40, I’ve learned to live with a lot more bizarre reactions than those over the years. My personal vision is to have my house completely solar so I can plug my car in at home — off the grid in 2 years. Let the doubters keep going to the gas station and AEP.