In Finance and Commerce, freelance writer Dan Haugen attempts to answer the question that I posed a couple of weeks ago. Dan phrases the question from the point of view of two local solar manufacturers, "How will Silicon Energy and TenKsolar manage in oversupplied solar panel market?"
Minnesota now has two companies trying to take advantage of the "made in Minnesota" solar panel subsidies. These subsidies were mandated by the state government but are paid for by utility ratepayers.
My question was how local companies will manage once the subsidies end in a few years. Dan quotes TenKsolar CEO Joel Cannon with an answer,
“This is why we think it’s so important to be geographically diverse, why we made such an emphasis on getting sales not only across the U.S. but outside of the U.S....The last thing we want to be is dependent on a local subsidy,” Cannon said. “That’s a recipe for business that can’t last.”
His local competitor, Silicon Energy, has a different approach. Dan writes,
"To make the product economical, the company successfully lobbied Iron Range legislators for a generous made-in-Minnesota solar rebate—something that Silicon Energy wouldn’t be in Minnesota without. Xcel Energy customers can now get rebates to cover up to 60 percent of the cost of a Silicon Energy or TenKsolar system. Silicon Energy’s sales efforts are focused on states where its customers receive made-local rebates.“
Time will tell which approach wins.
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