Is there enough solar to meaningfully
providepower for theU.S.?
The sun represents the most abundant
source of energy by far, yet solar power
makes up less than 1% of power generation
in the U.S. today. That is changing rapidly.
In fact, the Solar Energy Industries
Association estimates that solar generating
capacity will grow 16 gigawatts (GW) this
year. If its estimates hold, solar generation
would grow at double last year’s rate, and
would represent the fastest-growing energy
source. Most forecasts today will severely
underestimate the growth of solar because
they do not take into account large step
changes in technologyadvancement, shifting
marketsor government forces.
Is solara reliable sourceof energy?
Currently, solar power is an intermittent
resource, meaning that it is not as reliable
as other sources of power generation, such
as natural gas power plants. Solar energy
requires access to sufficient sunlight which
isnot evenlydistributed.
With the cost to install solar down 75%
since 2006, solar has become an attractive
source of energy today. This change will
accelerate as the issue of reliability is
addressed by technological advances in
energystorage.Suchadvanceswill reduce the
cost and improve the performance of large-
scale batteries, thereby liberating solar as a
sourceof energy.
Issolaracost-effectivesourceof energy?
The solar industry continues to make
advances in both energy output efficiencies
aswellascosts.Costsareestimated todecline
10%annually for thenext several years. Solar
is already competitive with other sources
of generation in theU.S. and inmost parts
of theworld.
A recent analysis byBloomberg estimates
that by 2040, a total of $12.2 trillion will
have tobe invested inpowerplants to satisfy
rising global power demand. Of that figure,
renewableswillmakeup two-thirdswith the
largest portion going to solar. As countries
address issues such as the need for zero
emissions energy, solar will be a critical
pieceof thepowergenerationmix.Moreover,
important global issues such as the ‘Carbon
Bubble’ will force theworld to shift tomore
renewable, low-carbonalternativesandsolar
will lead theway.
THERISINGSUN
WilliamO.PerkinsIII, chief investmentofficerofSkylar
Capital, is long-termbullishonsolarandrenewables
WilliamO.PerkinsIII isthefounder
andchief investmentofficerof
SkylarCapitalManagementLP,
aU.S.VirginIslands-basedfund
managerresponsibleforthetrading
ofanenergy investmentfund.He
alsofoundedSkylarEnergyand its
renewableenergyaffiliateSkylar
Resources in2013,andSmall
VenturesUSA,aprivateequityand
venturecapitalfirm, in1997.
SkylarCap.com/Info
WILLIAMO.
PERKINSIII
This is intendedfor informationalpurposesonly.This isnotanofferorsolicitationwithrespecttothepurchaseorsaleofanysecurity.Any investmentdecisionwithrespecttoan investment inthisfund
shouldbemadebasedsolelyupon informationcontained intheofferingmemorandum.Commodity interesttrading involvessubstantialriskof loss.Pastperformance isnoguaranteeoffuturereturns.
PROMOTION
