SunEdison simplifying solar.

• Author: Heffes, Ellen M.
• Position: THE OFFICE - Company overview

How did the company get started?

Sun Edison was founded in 2003 by Jigar Shah and funded by private equity investors including Goldman Sachs Group and Mission Point Capital. The solar industry was highly capitalintensive, project costs were high and traditional solar companies were developing the market slowly

The Sun Edison team developed alternate financing vehicles such as the power purchase agreement (customer buys energy produced at their location over a long period at a steady rate) and tax equity (investors who can use tax credits will purchase the system).

Sun Edison also developed methods for higher quality, lower cost and faster installation of solar projects. Creating these innovations helped unlock the market and drive the company's growth.

A solar project consists of an array of solar panels, also known as modules, which convert sunlight into photons. Energy is converted from direct current (DC) into alternating current (AC) by an inverter. It helps power the customer's energy on site or is fed into the energy grid. Solar can support anywhere from 20 percent to 40 percent or more of a customer's energy needs during daylight hours, depending on the location.

What events are significant in its evolution?

Global awareness of climate change and rising energy costs have accelerated since 2000. Many government entities have supported solar with favorable policies, including Germany, Japan, Spain, Italy, India and Thailand.

In the United States, a federal tax credit and elements of the Reinvestment and Recovery Act of 2008 (known as the Stimulus Bill) aided acceleration of renewable energy, including solar. California has traditionally led the U.S. in support of solar initiatives with renewable production standards, and other states, New Jersey for one, have significant cleanenergy requirements as well.

In November 2009, Sun Edison was purchased by MEMC Electronic Materials, a public company with a 50year history of innovation and technology leadership in semiconductor and solar wafers.

In November 2010 Sun Edison commissioned the largest solar plant ever built in Europe at Rovigo, Italy. This 71 megawatt (MW) system generates enough energy to power more than 1,700 homes, or to remove 8,000 cars from the road.

How has the business mode changed?

As solar has proliferated--though still below 2 percent of global energy production--the costs of modules and materials have decreased dramatically. Successful solar companies must be...