Figure 1- Representative solar concentrator dish for
high-efficiency energy conversion.

After attending the 2009 Southwest Build-It-Green Conference and Expo at the Phoenix Convention Center this spring, it became quite apparent how inadequate Arizona is in terms of expertise in solar energy. Amidst its gigantic potential for solar investment, Arizona and namely the Phoenix area, lack any significant solar cell manufacturing and research and development (R&D). Interestingly enough, over 40% of the state’s energy is derived from coal.

The primary solar presence in the area is First Solar Inc. with its lofty building near the Tempe, AZ Beach Park; however, this company only has its headquarters here, which contain business offices, because their primary US solar cell R&D and manufacturing is in Perrysburg, Ohio. The majority of Phoenix and state-wide companies in this sector are solar panel installers for homes and/or businesses. These companies are essentially distributors for foreign companies or ones with manufacturing overseas, partially due to the fact that the US is only fourth globally in solar capacity; thus, lacking in parts of the supply chain. However, most local installers various types of panels in terms of size, power output, efficiency, design and cosmetic appeal.

Local power utility providers such as Salt River Project (SRP) and Arizona Public Utility (APS) have not been immune to the global economic downturn and have actually decreased investments in solar energy research and development at facilities such as the APS STAR Center, while also freezing job openings in alternative energy. Stirling Energy Systems Inc. (SES), which owns a significantly smaller market share of the utility market in Arizona, has its corporate headquarters in Phoenix and is yet building the world’s largest solar power plant in El Centro, CA, which is 100 miles east of San Diego. This plant will encompass 30,000 solar dishes or SunCatchers that are 38 feet in height and 40 feet wide, utilizing mirrors to concentrate the sun’s energy and convert it into electricity, similar to the one shown in Figure 1. SES’ research and development is conducted at Sandia National Laboratory, while they possess a technical development office in Tustin, CA, both located, of course, OUTSIDE the state of Arizona.

Out of the three major Arizona power providers, SRP has the least emphasis on solar power by virtue of the fact they are not regulated by the US government and are not constrained by mainstream public policy for renewable energy sources. Even though Arizona State University has taken major strides to utilize and explore solar power, the current state budget crisis has generated a significant budget cut that has reduced solar energy expansion plans for buildings and generated a campus-wide hiring freeze that has affected its well-known Institute of Global Sustainability, which focuses on Green energy technology.

Overall, the current recession has impacted the solar energy industry and slowed the explosive growth it enjoyed in 2008. The Arizona solar industry will continue to be adversely affected by the economic downturn, since it is highly reliant on consumer spending and the housing market, amidst the high average price of $25,000 (excluding tax credits and utility rebates) for solar panel installations to homes. California truly deserves credit for its example in leading the nation in solar power research, development and manufacturing with ~65% of the country’s installations also occurring there.

We will have to see if the momentum and impact of the 2009 Greenbuild International Conference and Expo held in Phoenix, AZ in November 11-13, 2009 will transform the landscape of its not only underperforming solar industry but its overall mediocre Green stature amongst US states and world as a whole.

Several of my future articles will discuss the driving forces and explanations related to Arizona’s disposition in the Green industry. Since this is my first article with the Examiner, I welcome all new readers and look forward to your dialogue and comments.

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