SolarCity’s CEO Lyndon Rive sat down with Fresh Dialogues last week to share details of the solar company’s business model, rapid growth, and ultimate goal of being the world’s largest energy provider. Yes indeed: this 35 year-old entrepreneur from South Africa anticipates no less than world domination.
Although Rive was tight lipped about the impending IPO expected in Q3 this year, he referred to the $280M investment from Google last year and said, “Our expectation is that companies like Google and other Fortune companies start making similar investments.”
“In order to monetize the full benefits of the solar system you need a large tax paying company. .. might as well use that tax bill to motivate the growth of the renewable industry…” he added. “We are approaching hundreds of Fortune 100 and 1000 companies…and will continually be raising funds, potentially in perpetuity.”
SolarCity is targeting companies that can benefit handsomely from the 30% Federal Business Tax Credit for solar investments. Although Rive wouldn’t name names, Apple Inc. springs to mind immediately. Record profits and enormous tax base? Check. Recently inclined to alternative energy investments? Check. In case you missed it, Apple recently invested in a massive 4.8 megawatt fuel cell development using Bloom Energy technology. Watch this space. We’ll keep you updated.
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Business Model
SolarCity’s innovative model offers a range of solar options. Customers can buy systems outright or pay zero down and lease or purchase the power the system produces. Large investments from partners like Google allow the company to make solar affordable and continue growing rapidly. Rive described the company’s business model thus: “(We) install solar systems for free, so we need capital to pay for that, and take a long term revenue stream on the electricity that we sell. So, as fast as we grow, that’s the business model that we’re in.”
Here is a transcript of my interview with David Axelrod on January 27, 2012 re. Solyndra, 2012 Energy Policy and President Obama’s State of the Union speech. Video here
ALISON VAN DIGGELEN: Hello and welcome to Fresh Dialogues. Today I’ll be talking with David Axelrod. President Obama’s Chief Political Strategist. David, thank you for joining me today on Fresh Dialogues
DAVID AXELROD: Happy to be here.
ALISON VAN DIGGELEN: Good. Now Obama has started his first (2012) Campaign ad with a defense of his clean energy policy. Why did Obama choose to start with green?
DAVID AXELROD: The ad that it was responding to was an ad sponsored by a SuperPAC… sponsored by the Koch brothers… two oil billionaires … and it was an attack particularly on the Solyndra issue but it was really an attack on the whole green energy initiative of the president’s. And we’re proud of that initiative…we’re proud that we’re on par to double renewable energy during the course of his first term. He believes very strongly that we need to command the clean energy technology of the future and that as a country we need to be encouraging the development of clean energy technology or we’re going to see that go to other parts of the world.
ALISON VAN DIGGELEN: You mention Solyndra specifically. Solyndra seems to be a thorn in the side of Obama. It keeps coming up. How does he intend to remove the thorn?
DAVID AXELROD: All you can do is be open and candid about it. We knew when made investments in clean energy technology that some would do well and others would not. That’s the nature of this…these are speculative investments. And that’s the reason why they needed some nudging from the government in order to blossom…You can look at Solyndra or you can look at the fact that when we started, the US had about 2% of the advanced battery manufacturing for electric cars. We’re on course to get to 40% by the middle of this decade.
ALISON VAN DIGGELEN: That’s impressive.
DAVID AXELROD: That wouldn’t have happened without the investments we’ve made. We’ve seen real growth in solar and in wind energy and so these are investments that are paying off for the country. I’m very certain that we’re going to look back at the seeds that were planted during this period and we will say that it has made a big difference for the country in a positive way.
ALISON VAN DIGGELEN: What percentage of the program’s investment went to Solyndra?
DAVID AXELROD: There were forty under this specific program, so it was a small percentage of the entire program. It was a program… that was begun under the Bush Administration and we accelerated that program because we do believe that we are in a real competition for the clean energy technology of the future and we as a country have a great interest in developing alternative energy and home grown domestic energy and renewable energy. These were investments that made sense. Some will pay great dividends, others unfortunately will not.
ALISON VAN DIGGELEN: Yes.
DAVID AXELROD: Plainly, we have to have our eye on the future and really encourage and develop renewable sources of energy. It’s good for the planet, it’s good for the economy, it’ll create great jobs…high end manufacturing jobs. This is going to continue being a thrust for us. We’re not going to back off.
ALISON VAN DIGGELEN: Thanks for joining us.
The interview took place backstage at Foothill College’s Celebrity Forum on January 27, 2012. Check back soon for more with David Axelrod:
On Michelle Obama’s influence on green policy
Read transcripts, see photos and check out our ARCHIVES featuring exclusive interviews with Tom Friedman, Paul Krugman, Vinod Khosla and many more green experts and visionaries…
and join the conversation at our Fresh Dialogues Facebook Page
“The ad that it was responding to was an ad sponsored by a SuperPAC…sponsored by the Koch brothers… two oil billionaires … and it was an attack particularly on the Solyndra issue but it was really an attack on the whole green energy initiative of the president’s. We’re proud of that initiative…we’re proud that we’re on par to double renewable energy during the course of his first term. He believes very strongly that we need to command the clean energy technology of the future and that as a country we need to be encouraging the development of clean energy technology or we’re going to see that go to other parts of the world.”
Solyndra appears to have become a thorn in the side of Obama. How does he intend to remove the thorn?
“All you can do is be open and candid about it. We knew when made investments in clean energy technology that some would do well and others would not. That’s the nature of this…these are speculative investments. And that’s the reason why they needed some nudging from the government in order to blossom…We’ve seen real growth in solar and wind energy and so these are investments that are paying off for the country. I’m very certain that we’re going to look back at the seeds that were planted during this period and we will say that it has made a big difference for the country in a positive way.”
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What percentage of the program’s investment went to Solyndra?
“There were forty under this specific program, so it was a small percentage of the entire program. It was a program… that was begun under the Bush Administration and we accelerated that program because we do believe that we are in a real competition for the clean energy technology of the future and we as a country have a great interest in developing alternative energy and home grown domestic energy and renewable energy. These were investments that made sense. Some will pay great dividends, others unfortunately will not.”
Note: in a recent report at ClimateProgress, Stephen Lacey confirmed that Solyndra’s loan guarantee amounted to 1.3% of the DoE’s total loan portfolio.
On the importance of clean energy technology
“We have our eye on the future and really encourage and develop renewable sources of energy. It’s good for the planet, it’s good for the economy, it’ll create great jobs…high end manufacturing jobs.”
On the future
“This is going to continue being a thrust for us. We’re not going to back off.”
The interview took place backstage at Foothill College’s Celebrity Forum on January 27, 2012. Check back soon for more with David Axelrod:
On Michelle Obama’s influence on green policy
On The First Lady’s organic garden at the White House
Read transcripts, see photos and check out our ARCHIVES featuring exclusive interviews with Tom Friedman, Paul Krugman, Vinod Khosla and many more green experts and visionaries…
and join the conversation at our Fresh Dialogues Facebook Page
Bloom Energy‘s Director of Product Marketing, Asim Hussain, made a rare public appearance at SVForum’sClean Tech Conference last week and shared some details about Bloom’s 2012 plans:
New manufacturing facility in Delaware.
“Here in California, we’ve created 1500 clean jobs and we’re going to do the same in Delaware when we build that (30MW) manufacturing facility.” Asim Hussain
Manufacturing in California
The privately held company currently has three manufacturing facilities – including its testing facility – and they employ two Bloom Boxes to power one plant, using a biogas source. They plan to extend that capability to the recently built second plant. Unlike many Silicon Valley companies, manufacturing operations are here in the valley, although they have a global supply chain.
Bloom Electrons
Fresh Dialogues asked about the future of Bloom Electrons, the energy-only purchase model the company announced last year. Instead of paying the hefty $800,000 upfront cost for a Bloom energy server, customers sign a ten-year energy purchase agreement at a fixed price. Hussain confirmed that this model allows Bloom to access a new market segment: the nonprofit sector. The poster child for Bloom Electrons is California Institute of Technology Caltech – which began a 2 MW Bloom installation in 2010. The program has also allowed commercial clients like Walmart to expand their Bloom installations from two to twenty eight stores.
Hussain was part of a panel discussion on green building, moderated by Abby Johnson of Abacus Property. The experts included Alain Poivet of Sunplanter, Swapnil Shah of FirstFuel and PG&E’s Andrew Yip. The conference was hosted by SAP‘s green gurus Peter Graf, and Rami Branitzky
Read transcripts, see photos and check out our ARCHIVES featuring exclusive interviews with Tom Friedman, Paul Krugman, Vinod Khosla and many more green experts and visionaries…
Days before the Global Climate Conference in Durban South Africa, NBC’s Special Correspondent Tom Brokaw delivered a strong message in Silicon Valley for those who deny climate change. “It’s real, we see it in our weather systems,” he said and made a somber call to action, saying everyone needs to take a part. Brokaw, who has hosted two documentaries about global warming for the Discovery Channel, says he’s planning an expedition to Antarctica with a team of climate scientists to record the glacial melting next January.
Brokaw cited carbon based fuels and energy consumption as major issues, and stopped short of making specific policy recommendations, but said that the Obama administration missed a valuable opportunity to do something substantial about energy and jobs. “People could have got allied with that,” he added.
He acknowledged his part in contributing to the problem (long commutes in polluting LA traffic to visit his beloved mother), but is now doing what he can to be greener. He recently adopted solar in his Montana Ranch, recouping his capital investment in only three years. In this intimate video, he waxes lyrical about the piping hot water and heating system – even during long Montana winters.
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Brokaw ended on an upbeat note, saying that he thinks the younger generation will change things for the better.
The video was recorded on November 21st, 2011 at the Commonwealth Club in Silicon Valley, moderated by KGO TV’s Dan Ashley. Brokaw is promoting his new oeuvre The Time of Our Lives, a conversation about America; Who we are, where we’ve been, and where we need to go now, to recapture the American Dream.
