Strengths

• Solar power is unlimited and free; one hour’s worth of sunshine provides more energy than the world needs in a year.

• Because a large surface area is required to collect solar energy at a useful rate, PanElectric intends on turning a building’s outer walls into a solar tower.

• Business model is scalable and potentially can be replicated worldwide.

• PV panel installation costs are being reduced through manufacturing efficiencies and technological advancements.  A continuation of this trend will make solar PV systems highly competitive with carbon-based generation options.

• Unlike wind farms, no new transmission capacity is required (designed to work with existing grid).

• Regulations – satisfies government-mandated green power requirements

 

 

Weaknesses 

• The amount of sunlight that arrives at the earth's surface is not constant (depends on geography, latitude, time of day, time of year, and weather conditions).

• Current PV panel technology is only 10-12% efficient.

• Panels can only generate power during sunny periods.

• Each state has different regulations, there are no consistent federal standards.

• Large-scale financing (of $200 or more) may be difficult, especially under current market conditions.

• Perhaps difficult to protect business differentiation, model can be copied by those with industry expertise.

 

Opportunites 

• Substantial market interest (“green revolution”), combined with significant governmental incentives promoting alternative energy sources.

• High public awareness about energy policy and growing momentum for creating more alternative energy sources.

• Growing interest in alternative energy generation at the household level (rather than on large utility scale), including use of solar, wind, and biofuels.

• Continued tax incentives.

• U.S. electricity demand is expected to increase by 30% over next 30 years.

• Global warming concerns are nearly universally accepted, thus putting intense pressure on reducing carbon emissions and carbon-fueled generation.

• National and state requirements for increased green power generation

• Increased use of carbon cap-and-trade offsets requires alternative energy sources.

• Tremendous solar power growth potential as PV technology improves and prices become more competitive with traditional generation.

 

Threats

• Current solar farms are more publicized and are better equip to commercialize to their target markets

• Issues with utility companies can also plague any solar panel company because they are emerging as an efficient new technology.

• Customers could substitute other alternative energy or “green” sources, such as wind, biofuels, hydroelectric, geothermal, and ocean waves

• “Green” improvements for traditional generation sources, such as “clean” coal, reusable nuclear fission, or natural gas, could prevent mainstreaming of solar generation.

• Emergence of new or currently unproven power generation technologies (ex. space solar, nuclear fusion) could make current solar technology obsolete.