SunbitsSass Peress – CEO of ICP Solar – Solar Blog

While many are recognizing that a glut of solar polysilicon is going to reduce costs and the crunch in the credit markets is going to tailor down expected growth, what effect will this have on an industry which targets “grid parity” as its savior?
The fact is that silicon prices went from $22 per kilo to $450 per kilo in just 6 years and that was not sustainable. Unfortunately, this artificial price level invited newcomers to invest heavily in new production capacity with the theory that in this 40% growth market, demand would ALWAYS outstrip supply. Well nobody seems to remember that there is no industry in the world that does not operate in cycles, so those thoughts, combined with the unexpected worldwide credit crunch, seem to have created a panic dynamic, even in our industry.
STOP!. BREATHE!…and take a moment to remember that renewable energy is the sector of the future which is probably today’s BLUE CHIP industry. If there is a safe haven today, its in our business industry.
So hold onto your hats, understand enough to see beyond this current crisis, and batten down your hatch for a bumpy ride. If you based your business projections on anything that was not sustainable, time for action, not words, to make sure you survive this current bump in the road…
Sass

As we see companies which were previously called “blue chip” fall down one after the other, I was looking to see if there is commonality between them and came up with the following observation: most have substantial funds tied up in legacy agreements or capital assets which are not reflective of today’s business realities.
GM is one case in point. Tons caught up in their legacy distribution and branding model (many brands for same items), factories that have lots of improvements required to catch up to the manner in which Japanese car makers run theirs (with far fewer workers, they put out far more cars per employee) and with brands that have suffered in recent years due to the image flip (japanese now better than american), these are companies stuck in the past.
When I decided to offload the factories which ICP Solar had built or acquired it was because I learned that the value of the capital asset today is far less than the value of the intellectual asset (your brand, your products, your vision). It is in fact the root of ICP Solar back in 1988 when I founded it, to be focused on product and brand development. Being now in that mode, ICP Solar’s future is assured, with or without the potential merger to Ibersolar (announced earlier this month).
My fear for the current economic situation is that government rarely runs things better than the free market and so the injections are being put left, right and center yet must be done in a manner to reward or protect the productive sectors of our society. If it is done to protect legacy sectors which have no future, it is throwing good money after bad. If it is done to help those sectors reposition and then ensure a repayment to society which is equitable, then by all means protect them now yet hold them accountable for the future. CEO’s of such companies should be taking substantial paycuts or moving aside to let those that have a history of addressing the issues I mentioned above with proof of delivery.
It is not an easy time for most, yet with the largest order book at this period in recent history, ICP Solar is poised to capture market share in an increasing market. We believe that the funds being pumped in by various governments around the world will eventually reach those in need and help to stabilize things, yet the only assurance of a positive future is if there is a mindset change in those industries in which we depended on and a focus on the new industries, such as renewable energy, where the new jobs will come from.
Sass

The world woke up to a black president of the United States on Wednesday. The sober moment when Obama delivered his acceptance speech was an amazing footnote to an amazing presidential contest.
He delivered his words carefully and with keen attention to pace, content and care. He called upon his people, the American people, to rally around him, understanding that these are challenging times. And yet above all the enthusiastic celebration, comes the realization that nobody can say that Martin Luther’s dream has not come true. The day when a nation’s leader is of his color, is the day when he has found the promised land he spoke of so eloquently decades ago.
And with this moment, comes a transition from entitlement to empowerment. It is the realization of many generations who have waited for this day and with it will bring much thought about the programs which were put in place particularly to permit a young man like Obama to succeed. And yet, is he really a product of those programs, or is he more a product of his own design, of a loving family, and of sheer brilliance and determination. Is he the exception that cannot change the rule or is he the example that can enpower a generation of young men who did not believe they could achieve such heights.
With empowerment, entitlement is to be questioned. Is it necessary anymore? Does the NAACP still serve a purpose? I am not answering any of these questions, it is not my place to say. I am simply putting forth some thoughts which could not have been expressed just a week ago when this dream was not realized.
I salute Mr. Obama. Whether or not we have the same political beliefs is immaterial. What is important is that he has the opportunity to drive us out of the mess we are in and into a better place.
Sass