Will the last guy out of Tempe (First Solar HQ) turn out the lights?
For followers of First Solar, once a 15 bagger from the IPO, last night’s press release marked a sad, but inevitable, transition from startup to ‘corporate’ — former CFO and Project President Jens Meyerhoff will leave the company next month. Meyerhoff was the most visible and, arguably, most credible, executive on the First Solar (Post IPO) team, and played a significant role in the company’s success form 2006-9. He was also early to identify, in 2009, the ‘transition period’ from heavy to light/no subsidies that, unfortunately, has extended way beyond the initial forecast period.
With Meyerhoff’s exit, the entire operating team has turned over in the last year, as new CEO Rob Gillette moves to “GE-ify” (flatten) the First Solar organizational chart. This was inevitable, as the complexity of country-specific opportunities, manufacturing logistics, and distribution channels presents little in common from market to market. A bit sad, but inevitable, as the solar PV industry has shifted to a much more tangled business model, probably to the detriment of the equity valuations of the companies involved.
Installation costs for residential solar systems continue to fall — now around $4.75/kwh (before subsidies) – over 25% below last fall. That’s $3.25/kwh after Federal credits, and before any local rebates/renewable certificate credits, and likely to drop another 10% during 2012. While ‘grid parity’ should, by rights, include the backup power reuired for system reliability, the incremental cost of solar is falling fast and, with sub $5/mcf natural gas for the cost of integrated solar will soon be competitive during peak demand in states with the most expensive electricity costs ($10.15/khw or more).