SOLAR CITY

Solar City : Green Energy Start Up with steady COST of energy

How is the best way to make analysis for start up?. Green energy industry is a new concept in mass industry. In 2008 Barrack Obama in his campaign announce his 5 million green jobs program. The program is consisted of several research in renewable energy, Fossil fuel, Electricity infrastructure and also low emission energy research. All of those programs are conducted for supporting green energy industry.

By 2015, based on solar trend, the industry is predicted growing 38 % based on my forecasting with average point to point estimate from 2000 - 2012. I think solar energy will grow fast because oil price is complicated and having too much leverage to global economy. 

we can remember oil price change when Libyan people was agitated by facebook and what was happen to oil price when Egypt was disorder because of its political issue.

This kind of industry will change everything, at the future people may prefer to live at tropical country because its energy cost is cheaper and the weather is comfortable.

Gas Vs Solar Energy

Gas will rise its price when the demand is more than its supply. The supply can be arranged by big oil companies as the major player and it will not be steady in its price. Meanwhile solar energy depends on the local weather and global climate. It is difficult to be controlled by human or market player. This is steadier.

In the past eight years, installed solar capacity is exceed 1500 %, from less than 1 Giga watts to more than 15 Giga watts.

I think Solar city was exist based on same vision with government campaign in create green energy to make thousands jobs opportunity. Co Founder of solar city is Lyndon R Rive. Solar city offers product and service which relates with solar energy. They said that in every five minute they get new customer.

Lyndon set the business in to product and service. The products are solar panel and inverter with some kind of software and tool which helps clients to monitor their energy consumption, such kind of energy evaluation which could be seen loss and efficiency in its useful of energy.  They did Campaign that their product is able to reduce energy cost until USD 50 each months compared to conventional energy. They also provide service and monitoring for existing customer in order to make money in customer engagement. The company also provide energy storage product for customer.  

They also create electric vehicle charging station for serving electric vehicle, they have corporation with tesla in this project. Elon Musk, CEO of Tesla is also hired as Chairman in Solar City.

Customer could buy either with energy purchase agreement or solar energy lease. Both of those are paid in monthly payment. The lease contract is at long term payment, 20 year lease.

US states commonly has 4 seasons with unsteady weather, the use of solar energy can be optimum at dry, summer and autumn.      

Customer

Residential : The homeowners who are spread on California and Maryland are included in this kind of customer.

Government: US air force base; School district

Commercial:  Walmart; City of Lancaster; home depot etc

Future Project

The company announces  its plan of  project financing amounting to USD 1 billion for military housing from Bank of America Merrill Lynch.

I made its sales forecasting based on Global data at above with 40 % growth. This start up company has been loss in these several years. But it has huge cash amount, that means the investor still believed to this business model. They trust to the company, they think at the future the company will keep growing and will be more profitable.