Corporate Solar
Google projects have a way of having unseen ramifications, but less than a month since the launch of the solar installation, some implications seem clear. The project demonstrates that corporate solar installations can: (1) generate favorable PR in the short-term, (2) recapture the initial investment over the medium-term, and (3) create long-term profitability and an attractive bottom line.
Other companies, especially those facing the enormous energy demands of tech sectors, will undoubtedly find this an enticing path to follow. Some already have: Wal-Mart secured funding to installing solar panels at seven stores, as an initial step towards reaching its stated public goals for reducing energy consumption.
As well, a recent announcement of Applied Materials’ solar installation plans caused commentators to note that it will out-do Google, a possible opening shot of corporate competition on solar initiatives. This could greatly reward companies that go solar, while providing confirmation that renewable energy is both profitable and environmentally sound. So far, any domino effect might remain constrained to California, where subsidies, sunlight resources, and cultural values encourage the decision greatly. Whether the waves from Google’s decision will extend beyond California will largely depend upon how much businesses can secure in terms of funding and whether they are able to take advantage of other states’ solar-energy incentives.
The Larger Solar Picture
An investment proportional to Google’s from a small business or residence—a purchase of enough solar panels to account for 30 percent of energy usage—shares many similar effects: positive nationwide PR scales down to positive local PR, and with subsidies applying the same to purchases regardless of size, profitability timeframes remain similar. Considered in isolation, solar is as sure a bet for a residence or small business as it is for Google. The crucial difference, of course, is that for a giant corporation like Google, there is next-to-no opportunity cost; it still has the cash-on-hand to fund almost all of its other interests, and has a built-in safety net of resources in case—however unlikely—the installation fails to deliver on its investment. Small businesses or residences must be more selective in applying their resources. Solar makes sense for small businesses or residences; the problem is that it might not make the most sense, compared to an alternative investment choice. As the cost of solar panels falls, solar will move from a feasible option to an irresistible one for more and more smaller-scale purchasers. Presently, with prices still high, greater confidence in the practicality of going solar may be the most significant impact on small businesses and residences.
The photovoltaic installation at Google marks a watershed event for the acceptance of solar power, both economically and culturally. With the panels up and running, and Google striving forward with new environmental initiatives, solar and otherwise, a voice wielding a considerable amount of cultural cachet has inserted itself into the renewable energy dialogue, and has spoken for the benefits of solar in an impressive way. As the United States slowly transitions into using clean energy, the Google example makes for both a striking practical demonstration and an important reminder of what is possible with solar technology even today.
 Google and Solar Corporate Solar |
