SolarCity Goes Thin Film

At the end of October, San Francisco-based solar installer SolarCity signed a landmark deal with First Solar, the US leader in thin-film solar cell production. The $25 million deal, which includes a contract for 100 megawatts of solar panels, will usher thin-film technology into California’s residential solar market.

To date, the vast majority of residential systems contain conventional, silicon-based solar panels. Thin-film panels are cheaper to produce but perform at lower efficiency, requiring more roof area to achieve the same output that a traditional PV system can handle. Nonetheless, SolarCity is interested. That interest is understandable for a few reasons:

1. The added financial support of America’s leading thin-film producer (First Solar gets a seat on SolarCity’s board). The added insurance will also allow SolarCity to expand eastward next year into 5 to 10 new states.
2. Rebates in Northern California are set to drop by $0.35/watt. An historic drop that can, at least partially, be offset by cheaper, thin-film panels. This will also open SolarCity up to markets in other states with lower rebates and electricity costs.
3. Thin-film solar panels do have advantages of their own: they work better out of peak sunlight, they are easier to install and are more building integrated.

SolarCity has a unique approach to solar installation as well. Rather than strictly sell solar systems to homeowners, SolarCity has a lease option which allows homeowners to avoid high up-front costs. This has helped make them the leading solar installer in California and, perhaps, gives them the confidence to make the first leap into residential thin-film installations.

Posted on November 24th in Solar Contractors by Dan.