You're watching...
Gunderson Capital CEO Bill Gunderson and Westinghouse Solar CEO Barry Cinnamon discuss the future of the solar-panel energy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
News tonight cylinders chief executive Brian Harrison officially resigns now you may recall Harrison.
-- a company's chief financial officer refused to answer questions from lawmakers at a recent house committee hearing on cylinders ill fated half billion dollar government loan.
Tomorrow there is a new hearing scheduled in the House of Representatives now is growing expectations that the investigation is gonna widen to include SunPower.
Some power also received money about a billion dollars in taxpayer money.
In its financial situation also appears dire on where it all goes from here we turn to build governors and -- -- in capital.
He is CEO and very cinnamon Westinghouse solar CEO gentlemen great to see again.
Our last time we had -- it was so good we invite you back to talk about solar power but first.
Bill gutters and about so -- hearings tomorrow -- about what's gonna happen -- SunPower any advance word about whether SunPower will go the way is so under.
No -- I don't have any advance word on that whether they'll take the fifth or not.
But how many of these government loan guarantees are gonna go -- Howard if it.
Well let let's just first look at the the record of the publicly traded companies of which have now have a track record of about four -- five years.
You know we had a solar index that was created about three years ago back in 2000 native publicly traded.
Solar companies.
That thing is down 85%.
Since inception.
What makes us think that all of a sudden that solar is a great investment and very even people that invest -- -- obviously bill was not a big fan but people were still a big fan of it are wondering where it goes from here Jack Robinson from the Winslow Green growth fund.
Said last week this is a real mess talking about the whole solar industry says are just too many companies too many technologies and I can't believe.
There isn't gonna be more consolidation so it's is that what we're in a -- stuff is this is it is this a shake out.
Yet.
That's exactly what's gonna happen mean you have to remember that this is fundamentally commodity industry it's not brain surgery to make -- solar panel.
But for the last five years people have been looking at this in -- as a very high gross margin business.
That worked out well when the demand was high but as soon as the demand slowed down because incentives slowdown in Europe and as -- -- supply just.
Way over shot -- and prices came down.
Margins got crushed and you know as as bill pointed out -- the the index just.
Goes to pot -- parent didn't -- a loan market as it a lot of the demand to go down because government subsidies went down that is the Spanish government said.
And we can't afford to spend that much money and his stuff anymore.
Absolutely they they were over subsidizing it in some countries in Europe.
What you know what what what's happening nicely here in the US does -- subsidies overall aren't that high is where at the point where it's grid parity in other words.
If you were to put solar on your house you're gonna get a -- for five year payback and it's even faster for utility scale solar in the desert.
Well but but -- life you know I guess maybe it is subsidies aren't that high but I'm looking at these numbers and it since the stimulus spending -- President Obama this particular I agree broke programs.
There are a lot a lot of these companies to get a billion and more in these loan guarantees.
And since there is a shake out coming one can expect that these these several dozen companies at least.
Half of them might be in trouble.
Well I think the shake outs already taken place there's really only one publicly traded company -- that's First Solar.
In Phoenix.
And if this is such a low margin business why in the world is the government investing in it.
Our taxpayer dollars you know the latest one is 735.
Million that went out the door.
To a solar plant in total pot Nevada.
I don't know if you've ever been the tone apply all right hopefully he'll actually talked to this city manager -- upon how long ago.
Yet just over the -- only -- a mock -- And of course is Alaska hi there to be Harry.
Well that happens to be Harry Reid's this resolutely at a big investor in the company -- Pacific capital group which is headed up.
By Ron Pelosi.
The brother a lot of Nancy Pelosi yeah an hour that's -- surprised at how well yeah it's you know we always knew that an -- very that's why we oppose all its funding from the beginning always loan guarantees from the beginning.
It's because the political process couldn't help but to get involved and where these loans go.
Yeah I I IE.
Agree we have to kind of take a step back and say is government gonna make any bets are they gonna loan money to any kind of energy source any industry.
Whether it's nuclear coal oil drilling.
And if they are I think solar should get their fair share.
The main thing we have to remember and separate out.
The disaster it's a Linder which was a failure of a company to manufacture product.
With what some of these other loan guarantees are used for which are fundamentally.
Just to build a power plant that's what for Solarz doing.
That's what's on powers haven't we found out a worry that a lot of these power plants are not working that well I mean particularly the concentrated solar power power plants those that use the mirrors to concentrate.
The power -- on I need those.
That whole technology doesn't look like it's doing so well right now.
You know I I totally agree with you but what first -- doing what SunPower is doing which is photovoltaic I mean that's just a piece of glass and makes electricity -- -- And those things are gonna work twenty years as long as you just dust him off every once all right.
By the way we should mention the ones that technology is not working so well so for their five that the government loan guarantee projects in California -- -- there.
And I'm being told I don't know if you've heard a different bill but that at least three of those -- probably gonna go bust.
Absolutely and you know if you take the publicly traded company that's laughed First Solar.
It was 317.
Dollars a share in 2008.
Today it's 56 dollars a share and fading fast OK well -- were happy that you're in the industry it's a tough time for an industry this kind of a shake out.
And again it may be it's necessary when it's like -- stopping an addiction.
You know these are the shakes that you get when you stop and addiction that big the industry's going through right now you're not I think you'll survive but I know a lot of others won't Barry cinnamon.
Bill well Anderson good to see -- both guys thanks for coming in appreciate a good debate.
