Welcome to Beacon Equity Research. Today is Friday, 28 December 2007  
 Home     Covered Companies     News and Commentary     Our Team     Ratings     Contact Us     Charity     Affiliates    
   


Open Energy Corporation (OEGY) could benefit from $3.2 billion California Solar Initiative

The US Department of Energy predicts world energy consumption will rise 71% by 2030. Meanwhile, the International Energy Agency forecasts the continued use of fossil fuels will cause global greenhouse gas emissions to increase by 55%. In these circumstances, the need for cheaper and cleaner energy source is evident. One solution, which provides economic, social and environmental benefits, is solar energy. The world solar photovoltaic (PV) market installations reached a record high of 1,744 megawatts (MW) in 2006, representing a growth of 19% over the previous year. Germany is the undisputed PV market leader with 55% of total installations. The US market grew 33% in 2006 and recorded 8% of PV total installations. The EPIA/Greenpeace report reveals an average annual growth rate of the worldwide PV market up to 2009 to be 35% and 26% between 2010 and 2015. It is expected that the PV share in total power generating capacity added globally will increase to 15-20% or 15-20 GW in 2015. The industry revenue grew from $8.3 billion in 2004 to $15 billion in 2006. By 2010, it is expected   to reach $36 billion.

On January 12, 2006, the California Public Utilities Commission (CPUC) takes one monumental step approving the largest funding initiative in the US solar energy’s history: the California Solar Initiative (CSI). The initiative creates a $3.3 billion, ten-year program to put solar on a million roofs in the state. California has set a goal to create 3000 MW of new, solar-produced electricity by 2017. This program changes the way the state's renewable energy incentives and rebates will be managed. The CSI offers photovoltaic incentives starting at $2.50 per watt for systems up to one megawatt in size. This can result in savings up to 50% in the system’s total purchase price. The CPUC will oversee a program to provide incentives for existing residential customers and for all non-residential customers. The California Energy Commission will also manage a 10-year, $400 million program to encourage solar in new home construction, known as the New Solar Homes Partnership (NSHP).

Open Energy Corporation (OEGY) could benefit from both California Solar Initiative and New Solar Homes Partnership program. OEGY is a renewable energy company focused on the development and commercialization of a portfolio of technologies capable of delivering low-risk and cost-competitive solar-based electricity. OEGY offers building-integrated PV roofing materials for commercial, industrial, and residential markets. Marketed under the trade name SolarSave™, the product line includes roofing membranes, roofing tiles, custom architectural PV glass, and a balance of systems equipment such as inverters, combiners, and accessories.

The California Solar Initiative, in a September 2007 Handbook, allowed OEGY’s BIPV (Building Integrated Photovoltaic) systems for rebates on retrofit use as well as new home construction. The last update of the official CSI website, www.gosolarcalifornia.ca.gov, confirms the above mentioned statement, as Open Energy is found on both list of eligible PV modules for CSI and the eligible PV modules for NSHP among several large commodity players such as Kyocera Solar, Inc., Mitsubishi Electric Corporation, Sharp Corporation, and SunPower Corporation.

In addition, OEGY is on the way to take significant advantages by signing, in March 2007, a joint marketing and distribution agreement with Eagle Roofing Company, the largest concrete tile manufacturer in North America; and in November 2007, a distribution agreement with Tri-Valley Wholesale and Petersen-Dean Roofing Systems, one of the largest residential and commercial roofing contractors in the US, to supply SolarSave PV Tiles to new homes across the country. The last deal includes a commitment to install approximately 100 SolarSave BIPV roofing systems per month in 2008. With the recent agreements, it appears that OEGY could achieve sales for the fiscal 2008 of over $20 million, compared to $4.2 million in 2007.

About Open Energy Corporation

Open Energy Corporation, a renewable energy company, focuses on the development and commercialization of a portfolio of solar technologies for delivering power and related commodities for various applications in the commercial, industrial, and residential markets worldwide. The company offers building-integrated photovoltaic (PV) roofing materials for residential and commercial customers. Its product line includes roofing tiles, membranes, custom architectural PV glass, and a balance of systems equipment, which are marketed under the trade name SolarSave. The company also holds an exclusive, worldwide license to a solar thermal technology called SunCone™ CSP (Concentrating Solar Power), which is currently being developed to produce electricity and potable water using only the power of the sun. Open Energy Corporation is headquartered in Solana Beach, California. For more information, please visit: www.openenergycorp.com
 
< Prev   Next >

 
Copyright 2007 Beacon Equity Research