Solar Powers New Leasing Options for Clean Energy

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Dec. 11 (Bloomberg) -- Tom Werner, chairman & CEO at SunPower, discusses the boom in the solar energy business in the United States on Bloomberg Television’s “Market Makers.”

America.

Capacity is up 35% in the past 12 months and for the first time since the mid-1990s, the u.s. is on track to install more solar panels than germany.

Our guest is with the second largest company in the u.s.. tom warner point us.

What is driving the pace of installation and what people want to know is if it is sustainable.

That's what we have seen is that the cost of solar has come down by half.

On top of that, consumer can lease the system so that they can pay and lessen their electricity bill today.

They are making cash in the first month with no money down.

It is making solar an opportunity for everyone.

How big a part of the business is this?

What's it has gone from 10%-20% of the business.

Demand is bigger than supply.

Now it is 20% and residential is the lions share of your revenue, how much bigger is it need to be?

If you could, could you finance all of your residential sales?

The trend in solar, this is to sell energy not systems.

That means that everything is financed.

What we do is we guarantee the energy output and we guarantee the cost of energy.

Now, residential, it is a great deal.

Then it becomes a capital efficiency play.

Can you raise the tax sufficient to raise the machine.

Do you really want to do this which returns the sun power into?

We aren't good at delivering economic energy.

We want to be the energy service provider.

We want to sell you energy that is economic and we want to add services that are on that.

He will go from a passive bill payer you can dial in your energy bill.

We will bring in outside financing.

We are not going to be the big financer.

We will have others help us.

What rule did capital markets have to do?

This is capital intensive to begin with.

The u pitt in for the original leases that you can can recycle for new leases.

But you effectively have to sell bonds that would be backed by the lease payments.

Exactly.

You would have to show that the lease payments are a solid asset that are worth low rates so that you can recycle the money very efficiently.

We see the capital markets think that the risks are coming down rather somatically.

We see these markets are likely to open up and that means that the lease market will be charged.

That is what is happening here in north america, maybe there's a possibility of something like that happening in europe.

I don't know.

What about asia?

You highlighted the strength of the japanese market.

We see a lot of policy change in china.

How will that affect you.

The exciting thing about these countries is that there is no penetration.

We just closed this on a project that we did with our majority owner hotel.

We are selling market rates unsubsidized.

That is because that they have a very hot and dry desert.

We will start in the right ways.

We will proliferate that around the world.

What we see is japan is 26% of our shipments.

We see huge opportunities to see increases in revenue growth from south america to the middle east where the numbers make

This text has been automatically generated. It may not be 100% accurate.

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