Influencing policy (training slides from Fast Track Impact)
Max dworkin into the final steps
1. Into the final steps –
The state of the solar
market and the future of
the CSI
Max Dworkin
September 16, 2010
2. REC Solar is one of the largest system
integrators in the US
World class engineering, construction and
procurement capabilities (EPC).
One of the largest and more professional sales
organizations in the industry
In depth understanding of the solar industry, and
how to serve customer requirements using solar
technology.
Experienced management team dedicated to
operational excellence and customer satisfaction
Lowering cost and creating scalability through
significant investment in Oracle ERP system and
standardized backend processes.
Proprietary products and services which lower
systems cost
Workforce of +500 passionate professionals
working to make a difference.
Serving customers form more than 13 locations
nationwide and expanding into new markets each
year
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
3. Mainstream Energy operates in the downstream segment of the PV
value chain; delivering high value systems, services and products .
PV Value Chain Revenue contribution by segment
$/
W
8. MSE Focus; 1.3 7.91
0 Delivery of 5
products, s
Focus of ystems and
our services 1.
upstream 35 Down-
partners 3.60 stream
6.
0 45.5%
.4
.4 5
1.05 5
4.
0 1.35
Up
Up-
2. 1.12
1 12 4.31 stream
0 54.5%
.20
.5
9
Source: Photon/Rogol 2006
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
4. IT S
IT’S OUR JOB TO STRETCH TECHNOLOGY AND
INDUSTRY EFFICIENCIES. . .
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
5. BUT IT WILL NOT BE AN EASY RIDE AS WE
NEED TO GET THE COST DOWN TO
INCREASE DEMAND.
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
6. Exponential growth in solar manufacturing capacity is
lowering cost. This in combination with increasing support
by state and federal government is resulting in rapidly
increasing demand.
Solar (PV) Industry Growth
50000
44149
45000
40000
35000
ty
awatts Capacit
30570
30000
25000
21630
20000
Mega
15761
15000
12095
10000 7913
5500
5000 3073
1407 1985
1050
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
7. Our view: Total System Cost/Watt DC:
Commercial $4.30, Residential $5.50
6.00
5.00
4.00
Cost
$/W Installation,
3.00 Racking,
BOS
2.00 GP
Inverter
1.00
Module
0
Commercial Residential
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
8. CSI Experience To date:
• > 3500 submitted application since 2007
+ Overall Positive experience
p
Created significant demand in market
- Additional administration burden
- Additional cash flow management burden
• Field level support from Utilities was relatively
good.
good
– Slower to execute automations and improvements but always
open to discussions and input.
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
9. CSI Going Forward:
• Market Environment Going forward
- High initial demand and rebate deployment has out passed
downstream efficiency gains.
- Module prices have stabilized with forecasted nominal declines
in pricing.
How will this effect demand in the market and what will be the
industries reaction?
• Support plan going forward.
– M k reaction will dictate next steps.
Market i ill di
- Additional MW deployment
- Policy changes
- Equipment prices
- Technology improvements
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
10. Summary
• CSI has been relatively successful in the first half
of its existence during early adopter market.
• Total system cost is about hard analysis in the
field, not about marketing promises.
• Work towards continued improvements in
consumer value proposition through: Technology,
Policy, Equipment, Installations, and pricing.
• Develop plans for both market acceptance or
denial if other external factors cannot keep pace.
Confidential – Not to be printed, presented or distributed without express written consent from REC Solar Inc.
11. Sample of Partners Customers
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12. Thank you for your attention!
Questions?
Thank you.
y
Poway High S h l 389 k
i h School, kW
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