Lyndon Rive

What is SolarCity and when did you found it?

SolarCity was founded in July 2006 with a mission to spur solar power adoption by making it more affordable and simpler, providing the customer a single point of contact for purchase, financing, installation and support. Since that time, we've quickly grown to become California's leading residential solar services company—with more installations in California than any other installer during the time that the California Solar Initiative has maintained such data. The company now has more than 230 employees and has expanded to serve Arizona and Oregon. SolarCity recently rolled out a new financing option for solar—SolarLease—that can make clean solar power less expensive per month than electricity from the utility company. We think this will tear down another major hurdle to solar adoption and allow more families to switch to cleaner, solar power.

How many solar panels do you have in the "fleet" that are ready to be rented?

We purchase our solar panels from various manufacturers, so we generally have inventory on hand to install as customers demand it. Even though our demand has been high since we began installing, we haven't had problems meeting customer requests in a timely fashion. We also employ our installers, rather than using third-party contractors, which gives our customers a single source for purchase, financing, installation and service, and allows us to carefully manage and predict installation schedules.

How does a solar panel work? Can a user have it hooked up directly to an electrical, gas system or water boiler?

Solar power turns free sunlight into electricity that can run any device you would plug into an electrical outlet in your home. More specifically, solar panels, or photovoltaic cells as they are also called, turn sunlight into direct current (DC) that can in turn be "inverted" into alternating current (AC) for all your home electricity needs. So anything in your home that runs on electricity can be powered by solar power. It does not replace gas-powered devices.

How do you transport the solar panels? What states do you provide service for?

We currently provide service in California, Arizona and Oregon. We've tried to make our transportation fleet as environmentally friendly as possible. We've deployed a fleet of Toyota Prius hybrids for employees, and where possible, we use vans that run on biodiesel to transport solar panels.

Laws regarding the use of alternative energy vary from state to state. How does this affect the demand for photovoltaic solar power as well as the installation and usage?

The regulatory environment for renewable energy does vary from state to state, but all states are concerned about clean energy usage and its relationship with preserving the environment. Most, if not all, are looking at ways to incorporate renewable energy into their plans for power generation, so we expect positive regulatory changes to continue to occur, state by state. The primary impact on demand for solar is the consumer perception that solar power is too expensive. This month, we're rolling out a new, financing option designed to make solar power more affordable than it's ever been for homeowners. Under the program, called SolarLease, homeowners can have a solar power system installed for zero dollars down and as little as $67 per month. SolarLease is designed to make it less expensive to go solar than not to go solar, which we think will help make solar a realistic option for more families, particularly in uncertain economic times.

How big are these panels? What will the neighbors think?

Sizes vary by manufacturer, but each panel in a residential installation is typically 3 feet by 5 feet. Our customers tell us that their solar systems are increasingly a source of pride, a "green badge of honor," so to speak. We've had a lot of success with community programs, where neighbors go solar together to get a group discount, so we think that most neighbors have positive, not negative, associations with seeing panels in their neighborhood.

Is a photovoltaic panel hazardous to your kids, your garden, your dog Fido, etc.?

Solar power is clean and renewable, and does not emit carbon dioxide, nitrogen oxides, sulfur oxides, heavy metals and other pollutants associated with fossil fuel plants. SolarCity systems are designed and installed to all National Building Code and National Electric Code safety standards, and are very safe once installed unless tampered with. However, a solar installation is a source of electrical current, and should be treated accordingly. Homeowners should not attempt to repair or modify or repair installations on their own.

How quickly will a consumer notice a difference in their electricity bills?

Once installed, a solar power system should make an immediate impact on utility bills, as it generates electricity that replaces some or all of that provided by the power company. In some cases, consumers can zero out their utility bill with the use of a solar installation, though in most cases, the most cost-effective use of solar is to reduce the bill, not eliminate it entirely.

What are the real savings of having a SolarCity PV panel on your home?

The savings will vary depending on the size of your solar system and your family's electricity needs. For example, a homeowner with a $150 monthly electric bill might install a 3.2 kilowatt solar system. This size system will generally reduce the monthly bill to $40 per month, for a savings of $110. The system is available for lease for an initial monthly payment of $90, and thus in this scenario, would generate a net monthly savings of $20 per month. Over the lifetime of the system—typically 30 years—the savings really add up. If utility costs continue to increase at historic rates (approximately 6% annually), savings will become even greater.

Tell us about your background.

Prior to co-founding SolarCity in mid-2006, I founded Everdream, a provider of software and services for large-scale distributed computer management. I led the company for ten years, until it was ultimately acquired by Dell Computer. After Everdream, I really wanted to do something that made more of a positive impact on the environment. The sun generates enough energy to satisfy all of the world's power needs, and solar power appears to have limitless potential. I co-founded SolarCity with my brother, Peter, to try and do my part to unlock that potential.

What would you say to those people that claim SolarCity's initial $2,000 installation fee is too high for most people’s budgets?

I would say, try the SolarLease. Making solar more affordable is a passion of ours. As part of our SolarLease financing option offer, we've come up with a zero money down and low monthly payment option for homeowners who want to keep their upfront costs low. This option can allow homeowners to immediately start saving money from Day One by switching to solar power, and we think it will make solar more attractive to families who may have previously felt that the upfront costs of an installation were too high.

With great advances being made in energy technology, in what direction do you see your company going in the next five to ten years?

As we continue to tear down the financial and technical barriers to solar adoption, we think that more cities, businesses and individuals will migrate toward solar and away from power sources that pollute and poison the environment.