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Alternative Energy - Friday, July 30, 2010

Solyndra Selected By Southern California Edison For Solar Contract

The United States appears to be catching on to the German way of approaching solar installations as Solyndra was awarded a contract to provide 16.2 megawatts (MW) of rooftop photovoltaic solar systems for Southern California Edison (EIX:NYSE) undre a 20-year power purchase agreement.

Photon Solar, Solyndra's wholly-owned subsidiary, is actually the company of record for the contract and will be installing the 16.2 MW on 18 rooftops in Southern California. The rooftop systems are expected to be completed in 2011.

Today's announcement is part of 60 MW spread out over 36 contracts that were awarded earlier this week. 11 companies were awarded contracts and Solyndra received the largest number of contracts and megawatts to be installed. SunEdison Utility Solutions, a subsidiary of Edison International along with Southern California Edison, received 11 contracts that totaled 11.17 MW.

While industrial rooftop systems are finally gaining traction in the U.S., European countries, including Germany, Italy, and Spain have been employing these systems for years. Coincidentally, in 2009 85 percent of Solyndra's rooftop shipments were to Europe. Installing rooftop solar systems usually does not eliminate a company's need for purchasing electricity, but solar panels do help stabilize energy costs while providing electricity from a renewable source. Solyndra's solar panels are ideal for light industrial roofs that require a distributed load of less than 3 lbs. per square foot.

Rooftop systems have an easier path for growth in the United States as they usually don't have leap over the environmental barriers that burden ground-based installations. And by taking advantage of unused space to generate renewable energy that can be immediately delivered to where it is needed, many companies are starting to see this as a smart business decision.

Solyndra is a privately-held company that has raised over $970 million in venture capital. Shares of the publicly traded Edison International were down 0.84 percent, outpacing the Dow's loss of 0.24 percent.