In October 2006, Google announced via its official blog that it planned to build the largest solar power installation on any corporate campus in America -- perhaps even the world.
In all, they would install over 9,000 separate solar panels, amounting to a total of 1.6 megawatts of power. The company stated that its project would offset approximately 30 percent of peak electricity consumption at key buildings at its Mountain View campus. The initiative was a natural fit with Google’s corporate culture: its founders had invested in solar power companies like Nanosolar for years, and it had taken smaller green steps previously. The straightforward announcement marked one of the most high profile steps towards solar power in American history.
Financing
The move toward solar energy made financial sense for Google. Citing an EPA report, the company acknowledged that it would make back its investment due to electricity savings. Reports confirm that Google will do so in approximately 7.5 years. From that point onward, it will enjoy net savings. Google’s cash-on-hand is just under $12 billion, and its solar investment cost in the region of $3 million, making the impact of the decision minimal financially.
Google will also benefit immensely from California’s solar subsidies, which apply even to highly profitable international companies. Google did not explicitly acknowledge this in the initial announcement, but did not escape the notice of some commentators. One particularly articulate objection to this subsidy, posted on Terrapass, used the event to object to two components of California energy policy: (1) using taxpayer money to subsidize enormous corporations, and (2) the government emphasis upon photovoltaic panels as opposed to solar water heaters.
The central issues are simple: if proceeding from the premise that subsidies for clean energy are a good idea, the problem then becomes how to most efficiently apply those public funds for the maximum utility. From a policy perspective, funding Google’s project—an investment in solar panels by a capital-rich company that would make back its money irrespective of government assistance—might be a misallocation of resources that could go to subsidizing more efficient solar power projects, such as heaters for small businesses or private homes.
A Successful Installation
Even detractors, however, objected more to the subsidy than to the project, and the announcement was met with near-universal approval. Construction of the panels proceeded, with Pasadena-based EI Solutions as the official partner. Google enlisted Sharp Electronics for panel production, and SatCon Technology Corp. joined up to provide power inverters.
Roughly six months after the initial announcement, on June 18th, 2007, Google switched on its photovoltaic installations. Concurrently, the company launched a simple web application tracking its solar energy savings, earning praise from Internet commentators for its fun illustration of a serious corporate investment. The application is still live, continuing to track the energy production of the panels installed.
The installation relies on a variety of solar collection methods. These include so-called “solar trees.†Placed in the parking lot, these aesthetically pleasing panels provide shade to cars and generate power at the same time, granting benefits rain or shine, day or night. Though not the first company to install “solar trees,†Google no doubt brings to the devices a higher profile. The company also announced that, in conjunction with its RechargeIT initiative, the project will power modified plug-in hybrids. The two examples could very easily dovetail into an integrated, efficient solar network, with solar trees powering Google employees’ cars for excursions or the drive home.
Most importantly, the installation launched on time and on budget, a clear success for Google. Google and Solar Corporate Solar |
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