Jason Morris

Renewables are Biden Their Time; Quick Hits

Great post from Katie Fehrenbacher at Earth2Tech today about how the selection of Biden would impact the future of cleantech. This is especially important at the time when many are concerned about the expiration of the ITCs and the impact it will have on adoption.

Regarding the ITCs, I have spoken to many people in the cleantech industry in the past months and will speak with many more at PVSEC, AlwaysOn GoingGreen and Solar Power International. Everyone with whom I have spoken expects the change in political climate come January to compensate for any lag in incentive coverage at the beginning of 2009.

What does this mean from a marketing budget standpoint? It varies by company, but many are pushing ahead with cleantech PR, government relations and advertising spend in Q4, looking to be well positioned when the new administration and Congress push a renewable-friendly agenda in 2009. Others are sure that even if action by the federal government is delayed, enough large (population) states will increase incentives (California, Texas, New England, New York and New Jersey) to make the investment worth it.

I know many think that green has reach a bubble stage and this is the natural cycle of the bubble bursting, but I don't think we have even scratched the surface of green adoption and investing.

Some other thoughts since my last post:

-WSJ post on a recent survey saying that Americans want their energy clean and cheap. Well, duh? My guess is that most would accept clean and comparably expensive for the short term, in order to reach clean and cheap. They just have to see a clear path to getting there and it will be tough since regional solutions make the most sense.

-Interesting post from Michael Kanellos of Greentech Media on "Five Inconvenient Truths" for the cleantech revolution. The most interesting was #5, which predicts that Haliburton, Chevron and others will eventually benefit. Do people think that the cleantech revolution will result in the collapse of these companies? I think history shows that whenever there are disruptive technologies in a market, the established forces try to slow adoption but then ultimately work to become part of the revolution through R&D or acquisition. Think of the Internet (Microsoft), open source (IBM) or software-as-a-service (Oracle) as examples. The bigger issue won't be the adoption and driving of geothermal by large energy interests but the manner in which they go about exerting their influence. Provided the PR around their entrance into cleantech is done correctly (honest, transparent and sincere), they can counteract some (but never all) of the skepticism.

-CNET does a great round up of clean car technology. It will be interesting to see how it plays out long term. Will it be plug-in electrics and hybrids, which will require a non-coal based electricity grid to have the most impact or hydrogen fuel cells which require a complete overhaul of the fueling infrastructure? Out of all of the markets, including solar, wind, hydro and others, this is the one that will have the biggest impact on everyday life.

-Ping me if you'll be in Valencia, San Diego or at Cavallo Point in the coming weeks. The next two months should be fast and furious in the cleantech world.

Posted by Jason Morris on August 25, 2008 at 12:22 PM
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Schwartz is GoingGreen

After a long hiatus in which I took a couple of trips and battled a sinus infection, it's great to be back in the saddle on Renewablog. Not to mention I returned with exciting news.

Schwartz has partnered with AlwaysOn to sponsor and represent the GoingGreen event. GoingGreen has become the premiere cleantech industry event focused on green financing, venture capital and emerging growth companies in solar, wind, green IT, sustainability, biofuels, etc.

GoingGreen kicks off what will be an action-packed Fall for the renewables market,  as PVSEC Europe, GoingGreen, greenXchange Xpo and Solar Power International (the artist formerly known as Solar Power 2008), all take place between Labor and Columbus Day week. If the other conferences have a line-up like GoingGreen (Raj Atluru and Steve Jurvetson, Vinod Khosla, Ajit Nazre, Ray Lane, etc.), we are in for one great stretch of conferences. One topic that is sure to be top of mind? The expiring renewable tax credits and the impact that a change in Washington will have on industries like solar, biofuels, wind and hydro.

If you attend the events, let us know what you think. I've been waiting for this stretch all year long.

Posted by Jason Morris on August 1, 2008 at 3:51 PM
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San Francisco a Little Greener this Morning

Ater weeks of debate and intense lobbying by green businesses and environmentalists around the Bay Area, San Francisco finally passed the country's most aggressive municiple solar grant plan. As Elsa Wenzel at CNET mentions, this will sweeten the SF pot for green start ups.

This is another example of the considerable movement at the municiple and state levels to drive green adoption. While this is a great thing for green vendors, it makes the job of cleantech PR practitioners and marketers much more difficult, as they are tempted to take a patchwork local-market approach to selling their wares.

While local PR programs are effective (we've been executing them for medical clients for nearly two decades), green is a different market that requires as much nationwide education as it does adoption. This is especially true as the federal climate becomes more politicized in an election year and much of the legislation introduced in 2008 is more about drawing battle lines than about getting things signed into law. That will change in early 2009, which makes national PR programs integrated with government relations even more critical. For this reason and this reason alone, it is important that green marketing and PR organizations not get too myopic.

With all of that said, bravo to San Francisco for taking the initiative to get a program in place. It will lead to an influx of companies setting up shop in the city and create a number of green collar jobs in the area.

It will be interesting if this also helps draw conferences to the city that have to date been the domain of Southern California, including Solar Power 2008 and GreenXchange Expo. Good days for solar are ahead.

Posted by Jason Morris on June 12, 2008 at 11:32 AM
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California Drought: Renewable Powered Pumps to the Rescue?

Governor Schwarzenegger has declared a drought in California following one of the driest springs on record. This of course is bad news to the farmers in the state and those of us in the East Bay who want grass for a yard and not a dustbowl.

The majority of the state's water comes from the Sierra snowpack and that pack is thinner this year than in normal years. Some farmers can make up the difference with deep water pumps, but those pumps run on diesel and use 5 gallons per hour, meaning one hour of pumping costs about $26-$30 per hour depending on the cost of fuel.

Conservationists and environmentalists point to global warming as the driver of snowpack reduction, whereas global warming naysayers call the drought cyclical. Regardless of who is right and given the cost of fuel right now, it leads to interesting questions about markets you don't hear much about.

The first market is desalination. This is a technology that has never made sense because of the fuel needed--wood, coal, natural gas--to power a desalination plant. Today, solar and wind, and (longer term) maybe even tidal resources could power such plants and give coastal states (hello drought-stricken Georgia) an almost inexhaustable source of fresh water. Not to mention it would help us deal with rising sea levels (sorry, bad joke).

The other area where renewables could help is deep water pumps. A lot of areas around the country have deep water reservoirs that are expensive to tap and require fuel to harvest. Using wind and solar power would dramatically cut costs for farmers and reduce the strain on reservoirs, rivers and other irrigation options.

If you are marketers in the aforementioned areas, this is a prime time to educate the market and government regulators about the viability of such technologies to generate sales leads and stimulate new investment. It will be interesting to see if either of these areas get any interest at the IDG GreenXchange event or Solar Power 2008. By then, California will be five months into an official drought and no doubt there will be plenty of discussion about the role renewables can play in water shortages.

Posted by Jason Morris on June 5, 2008 at 10:43 AM
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Back in the Saddle: Green Breeds Green

After a busy May split up by a Yellowstone trip (and two Grizzly sightings) I am back in the saddle on Renewablog pledging to do 8.3 percent more green posts in Q3 than I did in Q2. Why? Because green gets a premium everywhere these days.

A new survey commissioned by BioCycle (and executed by Schwartz client Marketools) shows that consumers are willing to spend $8.30 more on a $100 product if it is made from recycled goods or helps the environment. This brings the total of such goods to $150 when you also factor in California sales tax. 

All kidding aside, this is a great sign that even during a softening economy people are still willing to open their wallets for greener goods and services. In fact, the survey also shows that seven out of ten respondents are willing to pay that premium, so it is not just a small subset of people throwing off the average.

This is good news for the green marketer.

Posted by Jason Morris on June 4, 2008 at 8:13 PM
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Kleiner Raising New Green Round

Great to see KPCB raising another round for green investment. It shows that despite a softening economy, people believe that green is still a good investment. It is probably a good bet since the political climate at the federal level will likely change dramtically in t-minus nine months. Maybe Kleiner's celebrity fund raiser, Al Gore, will play a role in changing that political climate?

Why is this important? Because it feeds the marketing and lobbying coffers of green companies, allowing them to better compete with traditional industries trying to slow green adoption.

It is also important because green marketers need to realize that the market is still going to get even noisier. They need to be pushing their executive teams for additional budget in 2008 and 2009, because the softening economy may have little impact on how aggressive their competitors will be.

Posted by Jason Morris on April 28, 2008 at 6:35 AM
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Sometimes Simple Point is Most Critical

When posting on a blog it is sometimes easy to overthink your topic and gloss over some of the really simple topics that are incredibly critical. This dawned on me when reading a post by John Gartner at MarketingShift.

His post is about how Green has reached mainstream levels in terms of buzz according to Nielsen research. He gives some useful information throughout the brief post, but John's simple yet critical point is his last one: "Companies have to develop a marketing message that is genuine and not condescending to the desirable demographic."

This is a critically important point for a couple of reasons:

1) We have reach the second stage in green hype. The first stage was the embracing of Green by hype watchers as the next big thing in business and lifestyle. The second is an age of backlash and skepticism driven by fear that it will be adopted, along with general pushback by media and others who will say that adoption is not nearly matching the Stage-One hype. A lot of the media out there right now is focused on the inefficiency of solar, the negative impact of biofuels and freak windfarm fires. This makes it a prime period of time for green washers to get destroyed by media and the general public. Hence, why John's "genuine" statement is important.

2) People sometimes overlook that communications and marketing can come across as condescening. Look at the presidential campaign. You have the campaigns of Hillary Clinton, John McCain and Barrack Obama trying to spin every little piece of information or data their way, to the point that it sometimes gets insulting to the viewer.  An Editorial in the NY Times this week accused them of thinking the American people are a bunch of "rubes."

This is how I feel sometimes about green marketing--that is so superficial and transparent, it does more harm than good. So the simple message is: Be genuine and don't condescend. If you have to fool someone or oversell your greenness, it won't appear green to your audience, it will be transparent.

Posted by Jason Morris on April 25, 2008 at 6:41 AM
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Earth Day Noise Pollution

We're often asked by clients if the biggest trade show of the year in their respective space is a good location to announce news. We usually answer their question with a question: "What is the goal of the announcement?"

We explain that if the goal is stand-alone media coverage, they might be better off using the event to pre-brief media and announce a couple of weeks later when the market has exhausted its news. If the goal is to drive business development activities, announcing what they are doing at the show to give sales and bizdev a press release to shop to customers and prospects might be the way to go.

The green/clean tech world is relatively immature when it comes to events. There are several that are vying to become the RSA, NRF, Mobile World Congress or JavaOne of their respective markets---such as Solar Power and GreenXChange Expo--but for the most part there is not yet that one event that makes green marketers exhaust their news arsenal.

But unlike security, open source, application development, retail technology and wireless, green does have a landmark "event" that brings every marketer out of the woodwork with a news announcement: Earth Day. I performed a highly scientific research project (40-second searching of Google News by source) and found about 500 commercial press releases from the past 24 hours that mention Earth Day.

My favorite? Purex announced that Jaime Pressly has become its spokesperson for the company's green campaign. I can just see Joy, Randy, Earl and Crabman doing what they can to stop global warming on My Name is Earl.

But the point is that Earth Day may have officially become the noisiest day in the Green world. The question for marketers then becomes: "Should you announce signidicant news on Earth Day?"

I think the answer would be a resounding "No." Earth Day is much too noisy, especially when you also factor in this year's Presidential campaign, earnings season and just about every other news event that could drown out a momentum announcement, new corporate green initiative or donations to a green charity.

My advice? Avoid Earth Day like the plague and don't contribute to the noise being created by marketers in every sector from detergents to light bulbs. Better yet, follow the advice of my eight-year old daughter who said, "Let's shut everything off today that uses electricity, including the Wii, Webkinz, the TV and the toaster."

Generation Green speaks. Shut off your computer, take the day off and celebrate Earth Day away from the noise.

Posted by Jason Morris on April 22, 2008 at 11:24 AM
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Speeds, feeds and....weeds?

According to a recent survey from IDC, we have seen an inflection point with regards to the adoption of Green IT. According to the firm, more than half of all IT buyers now consider "greenness" as part of the buying criteria. The number one driver in green purchasing decisions is economic revolving around operational costs. As energy prices continue to go higher, there is little chance that this trend will stop anytime soon.

What does this mean? It means even more hardware marketers will tout the greenness of their products through PR and advertising. It means that companies that reduce storage and other infrastructure requirements (SaaS) will continue to point to the indirect costs those products save customers. Bottom line? Green IT is here to stay.

Posted by Jason Morris on April 21, 2008 at 5:26 PM
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Renewable Energy Tax Credit Decisions Coming

Back from a short hiatus while the RSA event was going on. Security is Schwartz's biggest practice group and when RSA takes place it is all hands on deck.

So what did I miss while discussing whether or not social networks are the next big target for security threats? Well, nothing since I was still paying attention. But we saw a major development last week in the Senate, where they attached renewable energy tax credits to a housing finance bill with the hopes that it would go back to the House and pass, only then to be signed by President Bush. The measure was passed 88-8 in the Senate. The biggest hurdle facing the bill is from House Democrats who must figure out where the money will come from to finance the credits. I think it is safe to say, based on past behavior, that Bush will not sign anything that increases taxes on oil companies.

This next week or two should be interesting.

Posted by Jason Morris on April 14, 2008 at 9:18 AM
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How Best to Put Out the Fire? Solar in SF, Zero-Emission Cars

The public will for change exists. The research supports it. The economics are getting there. So what's the problem? Some of the same problems that have stifled green adoption for the past several decades. In the specific cases below? Politics and Detroit.

Word from both Chris Morrison of VentureBeat and Craig Rubens of Earth2Tech that the City Supervisor in San Francisco has stalled a plan that would have provided $6 million in consumer solar rebates to residents that implement solar electric systems. His concern? That only the wealthy will be able to take advantage.

I know housing prices in the city have come down a bit, but aren't most property owners in San Francisco considered wealthy anyway? Aren't there also programs and special financing in place for solar installations for affordable housing projects? I know that solar on affordable housing is one of the areas where Schwartz client Borrego Solar specializes, so I suspect the answer is "yes." I think it is time that politicians get creative and invest more in green rebates and tax credits, rather than focusing solely on which is the best approach, taking credit and further delaying something that is sorely needed.

Which brings us to Detroit and a post from Katie Fehrenbacher of Earth2Tech. Apparently Big Auto has successfully muddled the adoption of zero-emission cars in California by focusing the debate on which type of car should qualify, battery, plug-ins or fuel cell automobiles.

I really think the best analogy for some of the inane debates taking place in the cleantech and renewable energy world are analagous to firemen watching a house burn down while they argue over whether it is most effective to use foam, water or sand, and which qualifies as a truly efficient fire-fighting tool. I hate to disagree with the great Billy Joel, but we did start the fire and we are continuing to feed it.

Posted by Jason Morris on March 28, 2008 at 10:45 AM
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Solar speedbump: Mountain or Mole Hill?

Last week saw the release of a report predicting that solar would see a serious speedbump in 2010, as the current shortage of polysilicon eases and solar cells flood the market. The report predicts difficulty for both thin-film players and the chrystalline silicon makers that depend on polysilicon as a key ingredient in their products. For green marketers in solar, this could mean that the window of opportunity is much smaller than previously thought.

This report looks at the supply side of the equation and sees doom for manufacture profits and gloom for their investors. I wonder, however, how much the report thoroughly investigated the demand side of the equation. There are a number of things that should increase solar demand in the coming years and may partially or substantially offset any increase in supply:

• Improved storage capacity--one of the biggest technology bottlenecks to the adoption of all renewals has been battery and storage efficiency. That said, millions are being invested in battery companies right now, including A123, Lion Cells and Seeo, which will help in terms of power storage in applications like electric cars, solar and wind. If the storage gets better, then the demand and ROI will go up significantly.
• Speaking of electric cars--one of the biggest contradictions in my mind is the use of an electric car charged on coal-generated electricity. What's the answer? Charging it with renewables. The use of solar combined with good battery technology and electric cars just makes too much sense. It also doesn't require substantial infrastructure overhauls like changing the types and locations of fueling stations. A solar implementation on a house, office building or even carports, would be a huge advantage.
• Government support--next January will definitely see a change in the political climate for solar and other renewables. All three major presidential candidates have stated that they believe in renewable sources of energy and will commit more investment in areas like solar. This includes direct investment in R&D and other areas, but also better federal tax incentives and rebates. These rebates will allow solar companies to protect some of their margins as the supply of solar increases.

There is no doubt that solar is riding high right now because of the perfect storm of high demand, low supply and large sums of investment. It also makes sense that the market wil mature eventually and it will be a bit more commoditized. But to predict it is going to get there in two years is a bit silly IMHO, since we have just begun to scratch the surface of building integrated photovoltaics and other solar applications beyond the panels you see today.

Posted by Jason Morris on March 25, 2008 at 10:43 AM
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Quick hits: Thin Film market overview, Green gadgets, Geothermal

Some musings as we head into the last weekend of winter darkness:

-The AP did a great overview of the thin-film market and some of the benefits of non-silicon based solar cells yesterday.

-Global Solar Energy opened a new plant yesterday that will eventually make it one of the largest CIGS thin-film production facilities in the world. One blog discusses how First Solar has to date, gotten off almost scott free in terms of competition and how the new plant could change that. As I've said in the past, the more successful the industry is as a whole, the better, as the marketing and lobbying power of the industry needs to grow rapidly. *Disclosure: GSE is a Schwartz client.

-Word is that geothermal is getting investor attention and beginning to take off. This is very interesting because the government is also boosting its investment in geothermal in the FY 2009 budget. Others getting a boost? Solar PV, Wind and Biomass. The news is not quite as good for tidal energy.

Finally, a cool round-up of money-saving, green gadgets on CNET.

Enjoy your 47-hour weekend!

Posted by Jason Morris on March 7, 2008 at 9:56 AM
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The Word from WIREC: Day 2

So I am going to have to report back on how WIREC day two went in a future post as our meetings today took us to locations off site, but still some interesting tidbits I didn't get to yesterday:

-One business development executive at a solar concentrator company said that he got in "very early" on sponsoring and exhibiting at WIREC, giving him a large booth size and prime location alongside the big boys (BP, Chevron, etc). If you are a green marketer with a gambler's mentality, there is definite risk and reward to taking this approach. He saw enormous reward as they were front and center to anyone entering the expo. A solid relationship with ACORE also helps.

-On which shows should you gamble if any? The best shows are obviously ones in which there are other local key audiences that can be leveraged in case the event is a bust. If you can schedule some local meetings/drop-bys off site, you can still end up with qualified prospects from the travel associated with an event. DC is a great location since there are a lot of companies with headquarters in the area, as well as a media and government-rich audience with whom you can network. The San Francisco Bay Area, Boston and New York are also good locations. Anything beyond those markets can be tough depending on your vertical focus.

-From a speaking perspective, it can be tough to justify the time and expense to present at an unproven event. Nothing is worse than having your executive speaking to a room of six unqualified attendees who don't ask questions. Therefore, while taking a chance on exhibiting costs can be prohibitive, so is the credit capital cost of sending your executive to an unknown conference.

-I met with an investment company (hybrid of an investment fund and a venture firm) that actually sees the renewable energy world very similarly to the way that green marketers and marketing/PR firms see the industry. Solar and wind are the most mature, with biofuels, hydro power and others a bit further off. That is not to say that companies in those markets cannot benefit from government relations, public affairs and PR, but those campaigns would be built around early mindshare, driving investment and and educating the market. Solar and wind tend to be the companies in a position to commpete on a product basis.

-WIREC was not very well attended from a media standpoint, but there was a young analyst firm exhibiting, Emerging Energy Research. It is interesting to see some of the boutique firms beginning to pop up offering advisory services to vendors of renewables and consulting services to commercial and government organizations. Who will be the Green Gartner?

-The most interesting item to come out of the WIREC show? How much government money there is that can be invested in renewable companies, but how few companies understand how to tap it. Government relations seems to be the great untapped market opportunity for a lot of renewable companies. It is money that requires no diluting of equity, no forfeiting of intellectual property rights and no decision as to whom you sell the product. If I were a VC concerned about becoming over invested in one of my portfolio clients, this would seem a like a great option since my equity stake and value would only be positively impacted by bringing on the government as an investor. With $152 million going into solar and $53 million (approximately) going into wind, GR seems like a great place to get a significant ROI.

Here endeth my WIREC visit. Off to Dulles to complain about the lack of midday direct options to the West Coast.

Posted by Jason Morris on March 5, 2008 at 2:50 PM
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The Word from WIREC: Day 1

Tuesday marked the first day of WIREC and it was an interesting start. Some observations:

-Kudos to the WIREC folks for doing a much better job than some other conferences at having an efficient registration system. At Solar Power 2007 in Long Beach, a colleague and I stood in line for more than 90 minutes for badge pick up (we pre-registered) and ended up missing a meeting as a result. WIREC knew the event would be well attended and they prepared accordingly. It took about four minutes to get our badge.

-While photovoltaic (PV) solar was the rage at Solar Power 2007, solar concentrators seem to be the most prevelant technology at WIREC. Sopogy, SkyFuel and Abengoa were a few of the concentrator companies exhibiting, albeit with slightly different strategies and target markets. Global Solar Energy was one of the major PV manufacturers present (*disclosure: GSE is a Schwartz client).

-Wind and solar are again the most dominant technologies on display in terms of commercially available products. Also well represented are biofuels, biomass and firms looking to service those companies (legal firms, government relations, etc.).

-Big kudos to ACORE for sponsoring a free lunch and again to the WIREC folks for having enough seating.

It'll be interesting to see if the traffic picks up a bit more tomorrow and to see what companies are saying regarding the ROI of exhibiting. There are obviously a lot of these events popping up around the country and abroad, and finite green marketing budgets need to know which events are worth the growing costs.

Posted by Jason Morris on March 4, 2008 at 11:40 PM
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Quick hits: Mr. Morris goes to Washington

Some quick hits before I hit the road....

• It's been a very busy week as I prep for a trip to WIREC in Washington D.C. The Washington International Renewable Energy Conference is a gathering of renewable and cleantech companies of all types. It just so happens that WIREC is taking place just as the wind lobby gets together in Washington for a major push.
• WIREC also coincides with the House's passing of renewable energy legislation that would increase oil company taxes and extend renewable energy credits (via Earth2Tech). Not everyone is convinced that the legislation will get signed.
• Everyone has seen solar and wind really take off over the past two years. What's next? Well, if you follow the money it could be biofuels. Mascoma got $50 million in funding. It will be interesting to see if 2008 is the year new fuels really start coming to market ... maybe 2009 will be the year we see the changes in infrastructure to support those fuels. In any event, the market is about to get noisy for you biofuels marketers.
• But let's be honest ... the markets of all renewables will explode in the next year as we have the perfect storm of increasing demand, huge rounds of financing and an anticipated change in the political climate for renewables.

I'll be sure to report some of the interestings things I see and learn at WIREC. For those attending the event, safe travels.

Posted by Jason Morris on February 29, 2008 at 10:46 AM
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The Green Marketer: Weekly Round Up

This past week was interesting, highlighted by a study, a survey and a political plea.

• First, an interesting survey was released this week that said that green features are finally delivering in terms of home sales by adding a $9,000 premium to the sale price. This gives consumers yet another way to recoup the up-front costs of installing a solar, wind or other renewable system. This is undoubtedly great news for green marketers. This type of data can help overcome some of the concerns about ROI, especially in a market where home values are dropping. Now we just need the home appraisers and banks to catch on.
• Second, a controversial study released from UC Berkeley that basically lables solar a waste of money from a residential perspective. It says that the cost of installing a solar system makes is too expensive when compared to its benefits. There are some things, however, that the study seems to have overlooked. Not all states allow consumers to sell energy back to the grid (net metering) or go negative on their energy bill. If that happened, it would certainly help in terms of offsetting the cost of the system. It also ignored the survey that showed the impact of green on the price of a home. For green marketers, this is not the type of study you want to see when it seems the market is taking off. The research did take a very narrow view, but we will likely see more of this and not less in 2008 and beyond.
• Finally, a plea from the governors of coal-producing states that clean coal not be forgotten as part of the renewable-energy agenda. This is critical to states like Pennsylvania, West Virginia and other large, coal-producing states. It will be interesting to see where this goes. Many have called "clean coal" a farce, based on technology that hasn't even been developed yet. There are also serious concerns about the way in which coal is harvested, including strip mining and other environmentally unfriendly means. Is clean coal real or a dream? We'll see in the years to come, but we should see a lot more noise about it given the number of state economies that depend on it.

Posted by Jason Morris on February 26, 2008 at 7:59 PM
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The Green Marketer: Weekly Round-Up

There were a number of developments worth watching this past week from a green marketing perspective:

-Earth2Tech had a great round-up of carbon-related legislation (complete with Schoolhouse Rock picture). These bills will  be important in determining what types of carbon caps and/or trading systems are implemented.

-Also on E2T, PG&E said that their latest geothermal contract will allow them to meet the 20 percent threshhold set by the state for electricity from renewables. This is important because one of the stock objections from utilities has been that cleantech hasn't advanced to the point where it is economically possible to generate large percentages from renewable sources. Green marketers now have an example to give when that objection is made by legislators and other key audiences.

-And finally, as I posted about earlier last week, the House is finally pushing a bill that would extend the renewable tax credits and rebates that are so critical to consumer and business adoption. This would help sustain the market has seen over the past several years.

Posted by Jason Morris on February 20, 2008 at 5:55 PM
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Tax Credits to Become Evergreen?

According to Craig Rubens at Earth2Tech and other reports, the House this week unveiled a bill that will renew the renewable energy tax breaks for consumers and businesses. This was necessitated when Congress could not get the credits into the fuel economy measure passed in Q4 2007. Senate Democrats at the time had too narrow a margin to get both measures passed in the same bill and alluded to the possibility that the tax credits could be revisited in early 2008.

This is huge news as the credits help offset the cost of implementing solar, wind and other renewable technologies. The more quickly economic incentives increase, the quicker we will be out of early adopter phase in the market. This will help cleantechs grow more quickly and result in better education of the marketplace. It also will help encourage continued investment in renewables by VCs and Wall Street, which will help preserve the marketing budgets of cleantech companies.

As mentioned in previous posts, federal incentives make the most sense because they encourage nationwide adoption. The states and municipalities can still add on top, but the move to cleantech should be a national effort. There are some holes in the legislation as pointed out by Rubens, but overall it is a great step in supporting continued market growth.

Posted by Jason Morris on February 14, 2008 at 6:00 PM
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Federal Incentives Make Most Sense

There has been a lot written about the failure of the federal government to renew or increase the renewable energy incentives and tax credits that are set to expire. In the meantime, cities and states have picked up the slack, developing initiatives that tie funding of solar installations to property taxes and city bonds. San Francisco, Berkeley and other cities around the country are creating these types of initiatives while they wait for a political climate change in Washington.

These regions are right to do what they can to advance the use of renewable technologies, but long term something needs to be done nationally. People who do their part to reduce their carbon emissions and reduce the strain on the power grid should get some sort of universal credit or break. You could have one neighbor receive thousands in incentives and tax breaks, while the other gets little incentive to install a renewable energy system. This is wrong.

It is analogous to two households with an adjusted gross income of $60,000 getting dramatically different tax rebates as part of the economic stimulus plan just passed. Cities and states should continue to do what they can to advance the use of renewables while the federal government sits in gridlock. But long term, Washington needs to do something aggressive that improves upon and superscedes local incentives.

It is unlikely that the political environment will change until January of 2009. In the meantime, marketers will have to continue to target areas where tax breaks and incentives make adoption more likely. National campaigns certainly don't hurt in terms of education and awareness, or in priming the pump if the federal climate does change, but direct lead generation is more likely to happen in localities. Some may even invest most of their marketing dollars in Europe where Germany, Spain, the UK and others continue to adopt renewable plans at a furious pace.

Posted by Jason Morris on February 11, 2008 at 11:59 AM
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Practicing What We Preach; A Greener Shade of Schwartz

You may seen the news this week that Schwartz has officially announced a Renewable Energy and Green Practice. Some folks will be shocked that this is something that we are just announcing since we---like some other firms---have been talking about it and executing on it for more than a year.

We were tempted to put our stake in the ground in early 2007, announcing to the world that we were making a concerted effort to build out the practice and that we were ready to help cleantech companies achieve their PR goals. We were even more tempted as we executed Green campaigns for clients like Rackable Systems, McNamee Lawrence, Shawmut Design and Construction, and CheckFree. It was tough to resist making noise when we began working on pro-bono projects, like the San Francisco Waldorf School and the Business Council on Climate Change (BC3), and commercial projects, such as AgileWaves.

So why did we wait? Well, clients always ask us when they should announce a new product or service offering. Our response is usually, "If PR is the only driver of the announcement date, we should wait until you have a compelling story around the product or service, including customers that support the fact that what you are bringing to market is truly differentiated."

The news is not that we are entering the Green PR world. It is that we have a differentiated services offering, including aggressive media and government relations, that is already helping our cleantech clients achieve their business goals. The news is that we are taking what is our single biggest core competency--helping emerging growth companies facing heavily entrenched, better-funded competition level the playing field through PR--and applying it to a market that needs it more than perhaps any other technology market in history.

Renewable energy companies face significant challenges, many of which I have blogged about the past. They face one of the largest and most entrenched industries in the world in the form of traditional energy (oil, gas, coal, etc), as well as the marketing and lobbying arms of numerous industries that don't like being regulated (auto, utility, manufacturing).

They also face very steep, well-funded competition within their own markets now that VCs around the world are sinking eight and nine-figure rounds into companies in solar, wind, fuel cells and biofuels. They also face large corporations in other markets who have begun developing and acquiring their way into renewable energy.

Bottom line: This is the ultimate David versus Goliath story and a story in which we are relishing the opportunity to play a part. We now have officially been cast in a role and are packing a pretty big slingshot.

Posted by Jason Morris on February 5, 2008 at 11:45 AM
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NYT: Solar Gets Going in California; Applied Materials

Great story today in the NY Times by John Markoff and Matt Richtel about how California is leading the solar charge, with massive amounts of investment, subsidies and jobs being created as a result. There was also news today of Applied Materials making a large acquisition of an Italian solar company for $334 million dollars.

These two stories are both great news for emerging-growth solar companies. They both support the position that solar technology is not an energy-crisis fad, but a long-term viable market. The Applied Materials deal will continue to send the message to investors that there are lucrative equity events waiting for them in renewable energy. It also may signal to Applied competitors that they need to be more active in investigating the market. As I've mentioned before, the market needs some big fish to bring their marketing budgets, lobbying arms and workforces to market to educate key audiences renewables and move the industry forward.

This is a trend that is not going away anytime soon.

Posted by Jason Morris on February 1, 2008 at 11:17 AM
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GM: Greenwashing or Green with Envy?

The practice of Greenwashing has made lots of news lately, as some companies overstate their commitment to green practices and the FTC threatens to investigate. I'd like to think it's a case of marketers not being fed accurate information versus marketing and PR intentionally trying to mislead the public, but until some internal memos make their way public, we'll likely never know.

I've been seeing a lot of General Motors ads recently pushing that company's commitment to green technologies, from greater fuel economy to hybrids, from biofuels to electric. Most will say that history should dictate a great deal of skepticism with regards to how committed GM actually is to greening their product line, pointing to the short-lived infatuation with compact cars among U.S. automakers in the late 1970s and early 1980s.

That said, the economic, ecological, geopolitical and social benefits of going green have never been better publicized, and I think the growth of Toyota and Honda have slapped U.S. automakers with a dose of harsh reality.

I am cautiously optimistic that what GM's CEO says in this CNET interview is true and that American auto manufacturers are committed to creating products that deliver the aforementioned benefits. Let's hope this is not a case of the largest U.S. auto company greenwashing the public in hopes that the market will again eventually favor the gas-guzzling behemoths that dominated the market over the past decade. Unfortunately, some suspect this is the case and will likely not believe Detroit can be green until they drive the proof.

Greenwashing is a foolish practice if done intentionally. It is analogous to a company claiming to have great data security only to find out later that the company was lax and suffered a breach. The PR damage of being accused and/or found of greenwashing is much worse than the likely benefits of making false claims about practices. It betrays the number one rule of marketing and PR: tell the truth.

Unfortunately, there are hundreds of companies out there likely partaking in greenwashing, meaning we will likely see more of it in 2008 than ever before. 

Posted by Jason Morris on January 30, 2008 at 12:15 PM
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Green My Ride

I saw a great profile on CBS News regarding some engineers who took a traditional hybrid car and equipped it with additional battery power and a plug-in power source. It turns out that when you drive the car fully charged, it doesn't have to have to use the gasoline engine for the first 40 miles--highway or city! This means that the majority of Americans (81 percent according to the report) likely wouldn't have to use gas at all, provided there was a way to charge the car at work or at a transit station. This includes me, as I commute a grand total of seven miles everyday to BART and back.

"Who killed the electric car?" Try, "Who is the electric car coming back from the dead to kill?" 

This raises a few different points (some marketing-related and some not):

- Sooner or later, the laggards in the auto industry will not be able to discount the advances being made in clean-car technology. They will be committing marketing and sales suicide if they don't start embracing the move toward ecologically friendly options. As I stated in a previous post, the green halo is only going to get brighter with all of the environmental education happening at primary and secondary school levels. 

- Will the adoption of electric cars and vehicles that do little harm to the environment damage the move to mass transit systems? If people aren't doing damage to the environment and their fuel costs are next to nothing, what will make them (other than a long commute) want to carpool or take public transportation? Marketers of mass transit will eventually have to start doing more to differentiate their service if the economic and environmental reasons aren't compelling. Food and beverage service, satellite TV and radio at your seat? I'd be sold. 

- If electric cars are going to become the eventual standard, as some VCs think they will, several things have to happen to maximize their impact:

• Battery technology has to improve dramatically (not an epiphany, well publicized). 
• The electricity charging the car has to come from renewable sources. This could include a solar array at a home, business or parking structure, or the embracing of renewable sources by utilities, such as that produced by solar or wind farms. Charging a car with juice from coal-based energy is not a very clean option.
• The horsepower generated in an electric car has to increase or those V-6 and eight-cylinder-loving Americans won't give the electric option a single sniff. Many have joked about the American dependency on heavy, high-powered automobiles. The only thing that has become more obese than our populace are the cars we drive.
  

Two guys in a garage became a euphemism for the technology entrepreneurs of the dot-com bubble. It seems that those two guys have gone back to inventing what the garage was meant to house--new, greener breeds of cars.

Posted by Jason Morris on January 29, 2008 at 11:02 AM
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U.S.: The Renewable Energy Melting Pot?

Germany is #1 in solar. The U.K. intends to be #1 in wind. Brazil has long been #1 in ethanol. The U.S.? Does being first in failed attempts to adopt a national renewable energy strategy count?

The recent passing of the energy bill by Congress and subsequent signing by the White House put an exclamation point on what has been a stalled effort to get aggressive renewable energy initiatives adopted at a national level. Stalling by utilities and some energy giants also hasn't helped.

In the meantime, different geographic regions and emerging-growth companies have really led the charge in terms of developing their own programs and investing in various approaches.

Texas will be first in wind. The southwest and California likely in solar. And like California, some coastal states will likely bet on the power of the tides. New England may be a hybrid, with wind and tidal power on the coasts and some solar power inland.

While I don't excuse the federal government for failing to advance renewable energy research, adoption and strategies, it may not be a bad thing that states have taken the lead. After all, we are talking about the country with the fourth largest land area in the world. A country so vast that it doesn't make sense to say "we are going to be first in X, because it is the best option for the entire country."

Truth is, the only thing that the U.S. should eventually become first in is consumption of renewable energy. It should serve as a melting pot of renewable energy, as it has served as a melting pot of cultures for hundreds of years.

Posted by Jason Morris on January 28, 2008 at 8:15 PM
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Green Investing: Alive and Well

Reports have begun trickling in regarding the level of green investment during 2007 and they are impressive. VCs continue to see green as a major investment vehicle for their funds, especially in light of the high-flying performance of thin-film provider First Solar. Green tech companies took home $3.4 billion in 2007 and some estimates have placed that figure in excess of $4 billion. In any event, green is getting greener.

What does it mean for marketers? Well, there is good news and bad news.

First the bad news: If you think things are noisy now, you ain't seen nothing yet. More investment means more marketing dollars spent on advertising, PR and other awareness campaigns by your competitors. It means that the market is going to become even more competitive. It means that  start-up companies may have enough cash to do in two years what took you three or four. Not to mention some of the massive rounds from 2006 and 2007 went to companies building out R&D and manufacturing, so some of those companies haven't even started marketing yet.

The good news? It means that other companies will be helping to advance renewable energy technologies in the mainstream consciousness with legislators, consumers and corporations. It means more money in the coffers of the renewable energy market to educate key audiences and battle the fear, uncertainty and doubt put forth by lobbyists, critics and some traditional energy companies. Anyone who has spent any time in marketing knows that trying to create a market or raise its visibility is tough to do without a budget that is in the millions of dollars. It can be done, but it helps to have others pulling the cart with you.

The increased investment and competition may also allow marketers to make the case for more budget in 2008 and 2009. Nothing riles a management team or board of directors more than a less mature competitor getting more attention from media, buyers and investors.  

In any event, green is getting greener.  

Posted by Jason Morris on at 9:20 AM
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Generation Green

A colleague and I got to attend a great event on Thursday. It was the unveiling of a new solar PV system at the Head-Royce School in Oakland. The event involved a full school assembly (all students K-12, teachers and administrators) to debut the new system and featured presentations from the head of the school, a prominent Cal Berkeley professor in the school's Energy and Resource Group, and the president of Borrego Solar, the designer and installer of the system (DISCLAIMER: Borrego is a Schwartz client).

The array on the gymnasium roof, where the ceremony was held, was amazing. Dr. Dan Kamman, the Berkeley professor and a Head-Royce parent, was very passionate and informative. The most amazing thing, however, was the level of involvement of students in the project. The school had formed a "green council" involving kids of all ages that helped consult and plan the project, as well as other initiatives at the school.

A fifth-grade girl and an eighth-grade boy, both members of the Green Council, delivered speeches covering the various green initiatives taking place at the school (e.g., composting, an edible garden, recycling), as well as a history lesson on solar connectors and solar PV systems. The hundreds of students were attentive and clearly understood the significance of the ceremony and took a tremendous amount of pride from their efforts.

Everyday, we hear about new and exciting programs around the country, aimed at making students more aware of environmental challenges and issues, and encouraging them to get involved. I got the sense sitting there listening to the students and hearing about the various initiatives at Head-Royce, that a new "Green" generation was taking shape. It is clear that while there may be occasional, short-term setbacks in the move toward renewable energy, long-term success will be ensured by the education and activism of the next generation walking the halls of primary and secondary schools around the country.

What does this mean for technology companies and marketers? It means that the green halo is not going to go away anytime soon. It means that a new generation of consumers will look at the environmental impact of the choices they make and will make minimizing that impact a key purchasing decision.

Posted by Jason Morris on January 12, 2008 at 1:48 PM
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This is how we roll

I've been asked by several folks which green blogs I read on a regular basis. I can honestly say that my home page when I open up Firefox is Earth2Tech. It's part of a GigaOM network and tends to focus on the technology behind the renewable energy movement. It also provides some great round ups of what is happening in renewable energy markets and on other blogs within the Green universe.

Without further ado, here are some of the other Green blogs on my blogroll:

gristmill--provides great discussions around different topics of the day and closely scrutinizes what is happening at a public policy level in the world of green.

Green Wombat--Todd Woody does a good job blending environmental and technology news on a regular basis as part of the B2 network.

Treehugger--The name speaks for itself, rounding up the best in environmental news.

VentureBeat--True it is not a green blog, but is a great place to see where the funding is going.  

Posted by Jason Morris on January 7, 2008 at 5:52 PM
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PR Wishes This Holiday Season

A list of PR wishes for this holiday season:

- I wish that all sales professionals would recognize PR as trying to help support brand awareness, lead generation and company valuation, and not view them as competition for budget or unnecessary annoyances for their customers

- I wish that customers of security companies would be more vocal about what steps they are taking to protect customer data in a world littered with high-profile breaches  

- I wish that public companies would realize that non-material press releases are not an effective way to manage the stock price (especially in an increasingly new-media driven world), but are in fact an exorbitant cost that takes budget and resources away from higher-impact PR activities

 - I wish that print advertising would stabilize, because let's face it--there are just some places you can't take a computer to read news and other content

-I wish that publications could expand their staffs so that journalists would have the time to do more in-depth reporting, versus having to constantly spit out news briefs and blog posts

- I wish that clear-cut winners would emerge in the vertical blogosphere so that audiences would not be so fragmented

- I wish that the renewable energy market would continue to grow bringing more technologies to market and radically changing the energy economy

-I wish that