Caitlyn (McClure) Batche
Sustainable Business Managment Portfolio
Key Factors/ Driving Forces:
Customers/Investors- There are several of accounts which weren’t able to install solar panels due to HOA (Home Owners Association) restrictions or lack of space. These customers could be candidates as solar farm investors.
Land Availability- Currently there is large amounts of land available within 50 miles where a solar farm could be established.Suppliers- Our company is currently being supplied with solar panels through US suppliers. The panels contain hazardous material, which currently is not regulated through policies.
Competitors- Currently there are zero solar farms within a 100 mile radius. Since the solar farm is an expansion of private solar installation, the solar farm will be in competition with itself.
Policy- Currently, any energy produced must be through a public utility. Privatization of renewable energy is restricted.
Technology- Investing in a solar farm can be seen as investing in current technology. As new technology (solar panels) approaches will the company change the panels? If new solar technology outdates solar panels what will happen to the solar farm?
Most Important Factors: Investors/Customers
Most Uncertain Factors: Technology/Political Policy
Overview:
Currently, our company provides home installation of solar panels. The company will use Scenario Planning to better understand if adding a solar farm would be beneficial to the company. The major question answered is: “What can influence/affect the addition of a solar farm to the company?”
Scnerario Matrix
Scenario Matrix Description
Solar Technology Boom: There is high demand for solar farms as efficient and cost effective technologies are established. This means more investors and easy entry into the energy sector market.
Solar Farm Trend: Solar farms are a new trend, peaking the interest of investors and customers. The public’s outcry for solar farms has resulted in major corporations creating solar farms. This has made the small company not as appealing, causing a more difficult entry to the market.
Energy Privatization Policy: Solar Farms now can sell their energy directly to the public without going through a public utility company, creating easier entry. However, this will create more competition. More competition can cause problems finding investors, especially if companies with more resources create large farms small companies cannot compete with. However, since the solar company already has a relationship with solar panel suppliers and already has accounts which want solar energy, there is easy market entry.
New Technology Outdates Solar Panels: A new form of renewable energy is discovered which causes solar panels to be irrelevant to the new improved energy sector. This would eliminate investors and make entry into the energy sector almost impossible
Master Guideline
Although future technology is unknown, it can cause an elimination of solar panels, making the company obsolete. However, solar panels can also be a major trend in the future, and if policy becomes more open, solar energy can be the dominant energy source. A solution is to lease the panels on the solar farm for 5-15 year intervals and plan for upgrade at the end of the lease. Creating contracts for solar panels for half of their expected life creates options for the solar farm if solar panel technology improves or completely changes. The old panels can be either be sold for a discounted price or donated to the local community. Keeping in touch with local, state, and federal policies and new innovations will give the company insight for the future.