Solar Energy Coming of Age

"Flush with capital and fattened up on government subsidies, sun power companies are positioning themselves to grab market share in high-demand areas of the globe, notably Spain, South Korea, Greece, Italy, and California.

The race to corner the market is spurring some companies to test unusual business strategies. Just last week, Hayward, California-based OptiSolar’s Canadian unit announced plans to build the largest complex of solar power stations in North America in southern Ontario.

But what has piqued analysts’ interest in the 40-megawatt project isn’t its scale or ambition—it’s OptiSolar’s unconventional move to both build and operate the solar farm, which can deliver enough electricity to light up 6,000 homes.

“It’s very unusual” to do both, said Jenny Chase, senior analyst for solar at London-based research firm New Energy Finance. “I don’t know of any company that’s vertically integrated from manufacturing to project development.”

Until recently, manufacturing was the moneymaker in the industry. Rising demand for solar panels, silicon wafers, and photovoltaic cells, coupled with a worldwide shortage of polysilicon, pushed up prices—and therefore profits."
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