Jeffrey Wolfe, President and Founder of groSolar, Chair of the Photovoltaic Division of SEIA

The B-GC is pleased to present this interview with Jeffery Wolfe, Founder and President of groSolar, one of the largest and fastest growing solar energy installers in the United States.  As he is also the Chair of the Photovoltaic Division of the Solar Energy Industry Association and a trained Al Gore speaker on climate change, Jeffrey has a wonderful perspective on the current state of the solar energy business and the major issues driving it.

:    Can you start off by telling me a little bit about groSolar, the states it markets in, business strategies and plans for the future?

Jeffery Wolfe: groSolar provides photovoltaics and thermal solar through three channels – residential, commercial and distribution.  For direct sales of residential and commercial systems, we are present in 12 states and D.C.  We service California and all states on the northeast coast from New Hampshire down to Virginia.  For commercial projects, we install everything from small to multi-MW systems.  For the large projects, we will operate in any state.  In our distribution channel we take our products and share them with smaller dealers throughout the country.  Including distribution, we have a presence in every major solar market in the U.S.

In the last few years, we completed three acquisitions.  We purchased Energy Outfitters, a solar energy distribution company, in 2007.  In 2008, we bought Chesapeake Solar to expand our presence in mid Atlantic states.  Then in 2009, we expanded into residential in California with the acquisition of Borrego Solar’s residential business.  The purchase of Borrego Solar’s residential division also expanded our presence in Massachusetts.  We have been very successful at bringing these acquisitions into the company quickly.  Going forward, our growth will be mostly organic, but I do not rule out the possibility of further acquisitions in the right geographic areas.

Overall, groSolar is now one of the top five installers in the country, and we think we are also the #1 residential installer outside of California.  We are also one of the top five distributors of solar products in the U.S. and an increasingly active commercial player.

:   Can you tell us how many MW groSolar has installed to date?  How much will it install in 2009?  What are expectations for 2010?  Do you install all kinds of PV and thermal solar, or do you focus on a few suppliers and why?

Jeffery Wolfe: The total of what we have installed, including what we have distributed to others, is over 30 MW.  In 2009, we expect to exceed 15 MW.  That is up from 11 MW in 2008 and 5 MW in 2007.

This year, we are experiencing more than a 300% growth in residential.  That market has been fabulous for us, motivated by great pricing and federal tax credits, as well as the Borrego Solar residential acquisition.  I expect this market to continue growing at a very fast growth pace next year.    In comparison, the commercial market has died due to a lack of bank financing.  However, I do expect the financing gates to open up and spur strong growth in commercial in 2010.  Overall, we are projecting a banner year in 2010.  I would expect the U.S. solar market to at least double next year to 800 MW, with similar growth for groSolar.

As far as suppliers, one of our biggest is Canadian Solar.  We are currently negotiating with other potential suppliers.

:   How does groSolar distinguish itself from the competition?

Jeffery Wolfe: I like to think we distinguish ourselves in at least a couple of ways.  First, we are a mission-based company, and that is pretty well known.   We have to make a profit to fulfill our mission, but we are out there to put a lot of solar on roofs, and that really impacts how we conduct our business every day.  Our goal is to put solar on your roof and we work hard to get that done in a cost-effective manner.   Second, we have a reputation for high quality installations and a very high satisfaction level.   We do not get call backs or experience warranty problems.

:    Which states in the U.S. have the most incentives for solar?  Which states are the best for your business?   Are you seeing any positive impact from the Federal ARRA yet?

A residential solar installation in Rocky Hill, CT courtesy of groSolar

Jeffery Wolfe: What we look for from the states are incentive programs with long term stability that provide sufficiently high incentives to make solar economical.  For residential programs, California has been a clear leader with a stable program.  Connecticut is fantastic.  New York has been very good with high incentive levels.  Pennsylvania, after years of trying, finally got a good program off the ground.  Massachusetts had the best residential incentives for any state, but then they ran out of money overnight.  Commercially, state incentives also vary.  Vermont just passed a feed-in tariff, and we have a project in the queue for that.  Unfortunately, there is a cap on the funds so we don’t expect it to create a lot of new business this year.  New Jersey has a great commercial market, but there is a problem monetizing the value of their SRECs (state renewable energy certificates).  Long term the SRECs are just too speculative.

ARRA has been fantastic.  For jobs in the range of 50 to 200 kW, companies that own their roofs are taking advantage of the tax incentive from ARRA, and we are beginning to see the jobs trickle in.  The best examples so far have been in Pennsylvania and Maryland where the state energy programs have used ARRA money to push programs.  On the reverse side, the bureaucracy in Massachusetts has caused them to stumble on ARRA dollars, and I don’t know if they will ever get it right.

:    As a Chair of the PV division of SEIA, how does SEIA promote solar energy in the U.S.?  Is it effective?   Is the Solar market in the U.S. growing?  What is the role of SEIA in promoting solar energy’s growth versus federal and state incentives?

Jeffery Wolfe: I think we have been incredibly successful at SEIA.  We have over 1,000 members, from the big guys, like GE and Sharp, down to the single digit employee companies. Also, SEIA is looking to move all solar technologies forward from the old solar thermal to PV and utility scale solar.  While we are rapidly growing our membership and have a budget that improves daily, we are dwarfed by any of the other traditional, old time fuel associations like coal, oil or nuclear, who have hundreds of millions of lobbying dollars at their disposal.  Faced with those kinds of odds, we have done very well.  In addition to getting the investment tax credit extended for 8 years, we have placed a tremendous number of items in the stimulus package.  On the upcoming climate and energy bill, we have a good seat at the table.  We won’t get everything we want, and we are up against entrenched interests with a lot of money, but we are doing very well.

:   If Congress passes and the President signs a Climate Change bill, like the Waxman-Markey bill passed in the House of Representatives, how will it impact groSolar?

Jeffery Wolfe: The passage of a climate change and an energy bill is fundamental to the safety and security of the U.S.  Climate change has already changed what business as usual can do, so I call it ‘business as unusual’.  Business as unusual has severe and extreme costs associated with it.  Passage of the Waxman-Markey bill, or something like it, is the only way we can save our economy from economic ruin caused by climate change – not only save it from economic ruin but bring it to new heights.  Beating back climate change and transitioning the world’s energy supply to renewables is inarguably the biggest economic opportunity we have ever seen.  It makes the internet and telecom economic boom seem like a pop rather than a boom.  

A 1.1 MW commercial installation at Mariani Packing in California. Courtesy of groSolar

One of my concerns is that, right now, energy is not presently a concern in the lives of Americans.  Passing a cap and trade system will start to raise the peoples’ awareness of energy alternatives, and that could have a big impact on people’s willingness to change.  Most of us are too busy in our daily lives to take advantage of great incentives for solar right now.  Getting the law passed will begin to change American culture, and Americans will respond by greater adoption of renewable energy.  In general that will help with groSolar’s mission to put solar on rooftops.

As far as a direct impact on groSolar, it is hard to say as we do not know what the final bill will look like.  If the bill as written today were to pass, it would have very little short term effect on groSolar as most of the measures would not be implemented before 2013.

:    I understand that you have long been concerned about climate change and that you often speak publically about climate change.  Has that spurred your interest in the solar energy business?  How important do you believe solar is to the reduction of greenhouse gas emissions?  As a percentage of US electric needs, how high do you anticipate solar will rise?

Jeffery Wolfe: My interest in solar started during the 1973 oil embargo, long before climate change was an issue.  Now I would say that solar energy is a tremendously important part of the climate change solution, much more than I realized when I started the company.

In my opinion, solar energy can deliver much more than 5% of U.S. electricity needs.  Double digits from solar is possible, and anything less doesn’t move the needle – not worth my time.  I don’t believe intermittency issues with solar are as significant as some people say.  We can certainly deal with that, and we shouldn’t let it limit solar energy adoption.

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