Here are some of the key takeaways from van Gerven's op-ed piece recently published by greentechmedia.com (GTM):
A Road Less Traveled
Why So Slow To Grow?
The global financial meltdown in 2008 caused corporate decision makers to focus on core business issues and effectively put a freeze on corporate spending.
Marketing Wrong Product Mix?
The solar industry may have overemphasized marketing rooftop PV panels to C&I customers. There just isn't enough rooftop area available on most buildings as compared to the electric load needed to be offset in order to make a project attractive to decision makers.
Large Scale Solar Projects
"First Solar's ground-mounted California Flats power plant, with a total capacity of 280 megawatts, covers 2,900 acres of land," van Gerven continued. "Electricity generated by the power plant will be shared between Apple and California utility Pacific Gas & Electric."
The 130 MWs of solar power that Apple requires to offset its entire corporate power profile is similar to a utility scale project.
These huge "utility-scale solar power plants" have a much better cost structure than typical on-site C&I systems.
Green Corporate Image
In the case of Apple, the company was looking to offset its total power consumption, including: retail stores, data centers and corporate offices with renewable energy.
Apple's rationale to customers and shareholders was that "an energy-efficient facility is good, but a 100 percent renewable energy facility is better."
According to the letter, Apple was able to achieve "30 percent in 2010 and 94 percent in 2013, the addition of electricity from California Flats will bring Apple to 100 percent."
Corporate Budgets
Apple entered into a 25-year power-purchase agreement (PPA) from First Solar's 130-megawatt Monterey California Flats solar plant.
Apple CEO Tim Cook stated, "We expect to have very significant savings, because we have a fixed price for renewable energy, and there is quite a difference between that price and the price of brown energy."
Having a long-term, guaranteed price for energy becomes a hedge against future fossil fuel price increases.
Investor Takeaway
First Solar is hoping that an "Apple Factor" will help accelerate C&I solar adoption by other enterprise customers and government agencies.
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