Solar Business Plan
New industries like solar tend to go through an initial period of rapid change and evolution. The business plan for solar cell manufacturers has changed dramatically over the last ten years, with a joint venture business model gaining popularity.
For example, SunPower recently formed a joint venture with AU Optronics to build the 1.4 GW solar cell fabrication plant called Fab 3, while Sharp has formed a $128 million joint venture with Enel Green Power and STMicroelectronics to produce 160 MW of thin-film solar cells. Joint ventures allow solar manufacturers to build their capacity more quickly without raising capital. Similar ventures are also taking place downstream, with investors like NRG partnering up with manufacturers like SunPower to build solar plants. NRG contributed $450 million of equity capital towards work on the SunPower California Valley Solar Ranch project.