Environment Forum

Thank you, EPA: U.S. solar companies

Many businesses chafed on Monday at the U.S. Environmental Protection Agency’s declaration that greenhouse gas emissions endanger human health.

But executives at the two largest U.S. solar power companies took a shine to the statement, which clears the way for federal regulation and came as a global climate summit opened in Copenhagen.  Now they’ll keep their eyes on Congress to act on future legislation.

First Solar’s chairman and former chief executive Mike Ahearn called the EPA’s move “an affirmation of the administration’s commitment to addressing climate change.”

“We look forward to a comprehensive legislative proposal next year that will provide a policy structure that combines putting a price on carbon emissions with rapid deployment of sustainable, non-emitting energy sources,” Ahearn said in an email.

SunPower‘s chief executive Tom Werner also applauded the move — with a nudge towards Congress.

“Today’s EPA announcement encourages Congress and governments worldwide to develop a schedule for addressing climate change by significantly lowering carbon emissions. SunPower is looking forward to helping ensure that, in the U.S., federal carbon legislation reduces carbon emissions by increasing the use of clean, renewable solar power,” Werner said in a statement.

(Photos: Chief Executive Officer of SunPower Corp Tom Werner speaks during the Reuters Global Energy Summit in New York. Photo credit: Brendan McDermid / Reuters)

What solar shakeout? U.S. and China firms say there’s room for all

When California’s SunPower and China’s Suntech strode onstage at an industry conference last week, onlookers braced themselves for a bit of sabre-rattling, or at least an animated debate about two global superpowers’ role in solar energy.

Some bet on an entertaining battle of words just a day after Robert F. Kennedy, Jr took to the stage at the Solar Power International conference in Anaheim, California and said that the United States was in an “arms race” with the Chinese to make solar panels.

Instead, Tom Werner with California-based SunPower and Zhengrong Shi at Chinese panel maker Suntech were all smiles and even bordeline chummy — on the surface at least — preaching cooperation rather than competition.

 Asked about the potential for U.S. manufacturers to do business in China, SunPower’s chief executive Werner said the country would be a “huge opportunity.”

“Understanding the market and being proximate to the market is always an advantage … Partnering with a Chinese company would be a distinct advantage,” Werner said.

“I look forward to seeing Dr. Shi some time in the next few months and you can help me meet the right people,” Werner added, as he extended his hand.

Could patents bring solar power companies more revenue?

The high tech industry regularly sees lawsuits fly over intellectual property rights.

Time will tell if clean technology will see a similar play, but a settlement this week between California-based solar power company SunPower Corp and SunLink Corp may shed light on things to come.

In February 2008, SunPower sued SunLink, saying SunLink had violated patents protecting several of SunPower’s rooftop systems. Under the settlement, SunPower licensed its patents to SunLink but did not disclose the financial details.

Some believe that solar power companies who successfully defend their intellectual property could win additional revenue streams. That could benefit SunPower and innovative companies both with upstream and downstream technologies, Deutsche Bank analyst Steve O’Rourke wrote in a note.

We were wondering what role readers think IP and patent lawsuits will play as the solar industry continues to develop. Do you think they will help bigger companies defend their market share? Or could a litigious environment stifle newcomers to the industry?

Introducing the Reuters Global Green Portfolio

As part of Reuters new Green Business section, we have chosen a diverse group of companies to serve as a proxy for the emerging green technology sector. Over the coming months we’ll be discussing each of them at length, and rebalancing our portfolio to reflect trends in the industry.

Click here to see our portfolio in action. You can track our performance against benchmarks, comment on our choices, and create a portfolio of your own.

********************

Comverge, Inc is one of the leading demand-response companies, known for their role in limiting electricity use during peak demand, employing technology to manage large companies’ power usage and control their costs. Their software can automatically adjust an air conditioner’s temperature or turn off a swimming pool pump when power supplies are tight, reducing prices for suppliers and end users by lowering end user demand at peak times.

Cree Inc manufactures light emitting diode (LED) fixtures, which consume less energy and last longer than incandescent and fluorescent lights. LED’s are experiencing increased demand as costs for power generation and concerns about greenhouse gas emissions rise, and Cree recently reported a third-quarter profit that topped Wall Street estimates on increased demand for ultra-efficient lighting,

LG Chem Ltd looks at first glance is an old-line industrial company with a petrochemical segment provides basic chemicals like polyvinyl chloride products, plasticizers, octanol, and butanol. But the company’s Compact Power unit is producing the lithium-ion battery for General Motors Volt plug-in, and the company is expected to play a central role as more hybrid autos roll out.

First Solar, Inc designs and manufactures solar modules using a thin film semiconductor technology. Its solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. The company has benefited from cost-conscious utilities’ efforts to buy more clean, renewable power through deals with Sempra and Edison International’s (EIX.N) Southern California Edison, and expanded its presence in the U.S. utility market in April with the acquisition of rival OptiSolar’s project pipeline.