RENEWABLOG

Industry needs First Solar, Coopetition

Solar is an interesting market. On one hand it is the most mature of the renewable energy markets, with commercially available product and in-production technologies. On the other, it is very immature from the standpoint of market dynamics, public relations and its ability to influence regulations. Most interestingly, there still exists an "us against the world mentality" that leads some competitors to cooperate on initiatives to help move the industry forward.

With that coopetition concept in mind, the performance of First Solar as a stock and as a company is great news for the industry. It is bringing attention to the Solar market as one that is booming and ready to be taken seriously from a financial and technological perspective. It also gives the industry a heavyweight whose only focus will be advancing the use of solar technology, versus the large number of companies that have a solar arm with other interests mixed in. Most importantly, as more and more renewable energy companies grow and build war chests from IPOs and growing revenue, the industry's marketing, PR and political lobby will dramatically improve, more effectively battling the FUD pushed by old industries and raising public awareness around emerging legislation.

I know it is tough for companies in the trenches of competing with First Solar in deals or for attention to see a silver lining in another company doing well, but competition is not always a bad thing in emerging growth markets. Oh, and as a disclaimer, I do not represent First Solar and I don't own any of its high-flying stock. If anyone wants to split a share with me, let me know but not until after the holidays... 

Posted by Jason Morris on November 15, 2007 at 2:49 PM
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