Solar Power Finance Without the Jargon

by Jenny Chase

"This is an essential book for anyone aiming to start a career in solar power or just seeking a deeper understanding. It’s also an entertaining read, salted with personal anecdotes and, in places, wry humour. Jenny Chase gives a lively account of how she rose through a precarious startup to become the head of solar analysis at Bloomberg. There is helpful career advice. At its core the book contains detailed analysis of the history, technology, economics, finance, and business practices of the photovoltaics industry and her views on its prospects. The style is relaxed and discursive, and the reader feels privileged to be enjoying a coffee and a friendly chat with someone who is uniquely well informed about this industry so vital for our future." Neil Hirst Imperial College London "This book is good for getting — and keeping — a job as a solar analyst." Francesco d'Avack Solar Analyst IHS Markits "A must-read for anyone interested in renewable energy and the energy transition." Read Full Review Jason Deign Jason Deign Associates S.L. Solar power has become big business, with $131 billion invested in 2018, up from just $11.2 billion in 2004 but down from $171 billion in 2017 as unit costs fell. New installed capacity grew from 1.1GW in 2004 to about 107GW in 2018, a steady rise as solar begins to compete with fossil fuels on cost and to be built in nearly every country. This is a book for the solar workers of the future, a business book for those without a business or economics background and those simply curious about major shifts happening in the world energy economy. Key financial, economic and technical concepts are interspersed with the history of the first decade of cheap solar power, and the author's experience of being part of a successful startup in the clean energy sector.

Genres: Nonfiction, Finance, Business

206 pages, Paperback

Published June 24, 2019

About the author

Expert on solar power. Big fan of science fiction, fantasy and the real world. Indifferently talented physics graduate who did not so much fall into finance as saunter vaguely downwards.

I wrote two editions of the book Solar Power Finance Without the Jargon to explain to other graduates what I needed to know to have a career in the deployment of clean energy.

I am not the Jenny Chase who writes books on yoga and spirituality.

I also have a daughter and a flock of geese.

Reviews

[Jason Deign · Rating 5 out of 5]

As the head of solar analysis at Bloomberg New Energy Finance, Jenny Chase is undoubtedly one of the most influential people in the solar industry today. Don't let her impressive credentials put you off, though. In Solar Power Finance Without the Jargon, Chase delivers an impressive primer on the solar sector in a style that is easy to understand and often downright entertaining. Billed as "a useful introduction to finance ... for people with ... an interest in energy technologies," this book is packed with useful data and unique insights and is a worthwhile purchase for the interested layperson and industry expert alike. I personally was picking up new knowledge after just a few pages, even though I've been reporting on the solar industry for the last decade. Thoroughly recommended.

[Kyle Weil · Rating 3 out of 5]

Solar Power Finance Without the Jargon is exactly that, a book on solar energy for people looking to learn the very basics. Well, it's more like quick overviews of the basics and then tons of technical details and jargon. So maybe it's not exactly like its name.

Anyhoo, this book was pretty useful in educating myself on solar energy. I learned a lot about how competitive the industry is and how many firms end up going out of business due to rapid changes in prices. Due to the high upfront costs for a solar power plant, changes in prices can wreak havoc on financing repayment. Cost of capital is one of the most significant factors now affecting solar energy prices. As a result, all solar investments should be critically examined through three lenses: Capex, capacity factor (how sunny it is), and the cost of capital. Since solar can produce energy at no additional costs, these are the factors that determine MWh price (annual operations and maintenance are negligible, usually around $6-12 MWh).

To date, the two main problems faced by the solar industry relate to intermittency and supply-demand mismatch. Intermittency occurs when the sun does not shine. Solar power can vary widely on how much power it provides on a given day due to changes in sunlight. Solar is also at a disadvantage since it cannot generate power at night. In order to truly gain market share, battery storage must be improved to ensure no solar energy is wasted.

As for the industry as a whole, many large companies have gone bankrupt due to an oversupply of solar modules. As prices for solar modules dropped in the past decade, many producers found themselves selling at below cost. This was a direct result of many producers signing unsustainable long-term supply contracts. As demand continues to rise, more and more companies will continue to enter the space. The solar companies that will succeed are those who are able to deftly manage their finances without stretching themselves too thin. Solar has been a volatile industry and will continue to see massive growth as the technology matures.

Overall, this book taught me a good bit about solar. I would recommend to anyone looking to learn more about the industry.

[Matthew Fitzgerald · Rating 3 out of 5]

A tricky read, this one. A good primer on solar energy and tech circa 2018, with an eye to how it all gets paid for (but a pox on all who thought jamming “finance” in the title would do anything but glaze over otherwise curious eyes). A dash of autobiography and energy system management too. But overall, this just all came off as jumbled. Some muddled examples, brevity where deeper and more specific analysis would have illuminated key points, and in general a lot of insight and expertise bogged down by weak structure, poor organization, and a general “first draft” feel. Chase may be good at pulling together pithy energy reports for industry and energy insiders, but not quite up to the task of fleshing out a deeper dive that’s satisfying to read. A strong editor would have helped strengthen these deficiencies; as it stands, it’s now “just” a quick read about the broad strokes of solar industry at this moment in time. For this, I found it helpful and informative; but just how useful this book is to you will really depend on how deep you want to go with this topic.

[Michael Gray · Rating 4 out of 5]

Really solid history of solar panels, with good high level descriptions of the various technologies along the way. I think this book might be more popular with a different title, but if you want to learn about solar power, start here. Credit to the author for also keeping things moving and being as entertaining as one can be given the topic - it certainly read much better than a textbook with similar information might.

[Leigh · Rating 5 out of 5]

Great recap of the early boom years of solar becoming big. I was working in the industry during this time when prices started to tumble and I have to say I learned so much extra stuff from this book in hindsight that just wasn’t clear at the time!

[Ashwin]

Brushing up for the new gig. Good book that I would especially recommend to people looking to quickly gain an in-depth knowledge of renewables with little to no background in it.

[Dat Hoang · Rating 2 out of 5]

It's called Solar Power Finance yet barely discusses about finance. The content is just generic solar information.

[JediMasterPercy · Rating 3 out of 5]

It’s a fine book with plenty of knowledge. I read it for work. Nothing wrong with it in particular I just hate nonfictions.

[Clara · Rating 4 out of 5]

Highly readable intro to the solar power industry, from raw materials to manufacturing to finance and development. The book was only written in 2018, it’s crazy to see how much has changed in such a short time.

[Dennis · Rating 4 out of 5]

After re-reading, the gems started to come out!

[Skylar · Rating 4 out of 5]

Read: If you are interested in being an energy analyst and want a well rounded summary of the solar industry and major solar topics.

Don't: If that sounds boring to you, or if you are already in the weeds wrt solar.

Could be a good one for teaching. Gives a lot of energy basics but built around the story of how
@MLiebreich founded @BloombergNEF

[Michal Bak · Rating 1 out of 5]

Bunch of stories and anecdotes from the author life. This title is misleading because it is not a book on finance or solar power.