|Oregon Solar Highway|
Financiers have lost their appetite for backing large solar projects says Jonathan Weisgall. He’s the vice president of MidAmerican Energy Holdings Co. the energy division of Warren Buffett’s Berkshire Hathaway. Weisgall said the market has fundamentally changed so the business plans must follow.
The trend seems to be leaning toward financing and finishing solar projects of 20 Megawatts or less and built close to existing power lines. The combination of not having to build new transmission lines and using private property for smaller projects cuts years off the permitting process but upfront funding is still a challenge in many areas.
The scaling back of mega-solar projects also means the loss of jobs for the industry. However, downsizing may spur local city based installers to hire as the focus shifts away from larger regional utilities projects.
Companies who are large enough to finance and build government, commercial and neighborhood installations will become the norm in a struggling world economy.
More details on the changing economics of the solar industry at My Desert.