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A SOLAR PIONEER
SunEdison
SunEdison has become a world leader in solar energy services, with clients like Whole Foods, Staples and Kohl’s. And currently? They are constructing a 72MW solar power plant: the largest in Europe.
SUNedison
corporate profile | solar
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ENERGY LEADERS TODAY
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a world leader in solar energy
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by Rachel Goldberg
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Since 2003, SunEdison has grown to become a world leader in solar energy services. The Beltsville, Md. based company has completed over 350 projects and is known as a pioneer in the solar industry. “Innovation is in our DNA,” said Attila Toth, Vice President of Marketing. “When it comes to financing, to contractual agreements, to system design, SunEdison is an extremely innovative company.” Toth has a strong background in energy and strategic marketing. He oversees product marketing, brand management and marketing communications. Working with a cross-functional team, he is committed to developing the next generation of solar services to benefit the commercial, utility and public sectors. SunEdison pioneered the solar Power Purchase Agreement (PPA), which has become a standard in the solar industry. The PPA model enables businesses, utilities, wand public entities to purchase solar energy without the expense of owning and maintaining a system. Clients commit to purchasing the energy produced by SunEdison’s
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“We look at incentives as a bridge to cost parity. We’re not basing our business model on government incentives, but we take advantage of incentives in the short term to achieve lower costs.” systems at predictable rates for a fixed rate period of time. SunEdison secures financing for the systems and does the construction, monitoring and maintenance. The customer then utilizes the energy produced to offset their demand from the power grid. For many clients, utilizing solar energy fits naturally into an overall sustainability plan, and they benefit from positive publicity associated with “going green”. One of SunEdison’s strengths is its ability to leverage incentives to reduce the costs of its solar power plants. Solar is a relatively new form of energy generation, and often requires incentives to be cost-effective. “We look at incentives as a bridge to cost parity,” said Toth. “We’re not basing our business model on government incentives, but we take advantage of incentives in the short term to achieve lower costs.” At the same time, SunEdison is focused on driving down the financial and technological barriers to make solar energy available at or below utility rates, without incentives. They build strong partnerships with financial institutions to raise large diversified funds, each of which finances numerous projects. Earlier this year they announced a joint venture with First Reserve, the largest energy-focused private equity company with $20 billion under management. The partnership could provide for the acquisition of up to $1.5 billion in current and future PV energy projects.
As technology and manufacturing processes become more efficient, the high costs of solar have shrunk dramatically. From 1997 to 2008, there was an annual average decline of 3.5 percent in the costs of PV systems. “The technology has improved so much over the past five years that costs have come down extremely quickly,” said Toth. SunEdison is able to capitalize on these shrinking costs by being “technology agnostic”, meaning they utilize the products that best fit the system design and will be the most cost efficient for their clients and investors. In 2009, the company was acquired by MEMC, a leading manufacturer of silicone wafers for the semiconductor and solar industries. This move gives SunEdison better insight into upstream component manufacturing, which ultimately affects its project development plans. “By controlling the solar contracts and the silicone wafers, which are the highest value components of delivering clean solar energy, we can get very competitive prices,” Toth says. The acquisition also gives SunEdison a strong financial foundation that smaller, more transient companies lack. Their record of financial stability and successful execution keeps their customers returning—44 percent have more than one SunEdison system. They have deployed a national fleet of solar installations for Kohl’s department stores and operate Summer 2010 5
corporate profile | solar
“Wehavepeoplewhoare true environmentalists, and people who are true capitalists. We are all driven by the same cause of making solar a widely used energy source at prices that make sense.” over 7.8 MW of solar projects on the roofs of Staples facilities. While SunEdison is well established in the commercial solar sector, they have also led the way on utility scale projects. They built the first ever utilityscale solar power plant in the U.S. – an 8.2 MW farm in Alamosa, Co. – and are constructing one in Rovigo, Italy, which at 72 MW will be the largest solar power plant in Europe. SunEdison’s success in a competitive marketplace is due in large part to the company’s values, says Toth. They are committed to achieving results while maintaining a high level of integrity and transparency with clients. SunEdison has over 360 employees who represent a diverse mix of backgrounds and viewpoints. “We have people who are true environmentalists, and people who are true capitalists,” said Toth. “We are all driven by the same cause of making solar a widely used energy source at prices that make sense.” ELT 1. An electrician works on the combiner box of a 600kW system for the City of Rifle, Colo. 2. SunEdison’s first project was a 32kW system installed at the Whole Foods in Providence, N.J. Whole Foods and SunEdison have teamed up on further projects in California, New Jersey and Massachusetts. 3. City of San Diego officials, including the Honorary Mayor Jerry Sanders, along with VP of Sales at SunEdison, Jamie Smith, prepare to “flip the switch” to celebrate the activiation of the 945kW Otay Mesa. Calif Water Treatment Facility solar plant. 4. A worker installs solar panels on the roof of the Stockton, Calif Department of Transportation. 5. A 1 MW ground mounted solar plant at the Ironwood State Prison in Blythe Calif. All photos courtesy of SunEdison 6 Energy Leaders Today
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