Are utilities starting to see solar energy as a win?

SunPower talks utilities and Total dealThere’s a fundamental shift in how utilities see solar, according to SunPower’s Executive Vice President of Corporate Communications and Public Policy Julie Blunden.

“California utilities in particular are converted. They will now tell you solar is very likely to become the dominant form of new energy production online in California over the next decade,” she said.

That’s largely because solar companies have reached the point of production capacity where cost has fallen enough to make it more competitive and rapidly deployable.

“We're just reaching some thresholds in the communications perspective when you tell people that we're building, actually building, central-station power plants that are delivering power within months after [breaking ground],” Blunden said. “Usually when you start building power plants it takes years, maybe a decade [before delivering power]. We start delivering power through phases within two months.”

That started around 2007, when SunPower approached Pacific Gas and Electric (PG&E) with plans for the 250-megawatt California Valley Solar Ranch power plant in San Luis Obispo County, Blunden said.

“No one considered us to be that big then. That was a fundamental shift in thinking, figuring out how to deploy solar at scale five-years ago,” she said.

The company also signed contracts for two new power plants in 2011, totaling 711 megawatts, according to Blunden.

“What's incredible is those contracts are for less than the cost of natural gas,” she said. “We need to be able to do that again and again to continue to grow.”

And that, according to Blunden, will help ensure the viability of SunPower and the larger photovoltaic industry.

For SunPower, that growth strategy consisted partly of finding a partner with even stronger capital.

“We were seeking strategic partners for the balance-sheet capability to invest at lower costs, and with a long-term view,” Blunden said.

The company found that in Total, which purchased a controlling interest in the company earlier this year.

“The strategic purpose is so we can grow faster. They have an extremely committed interest in solar in the long-run.”

Pictured: Julie Blunden of SunPower. Image courtesy of SunPower's Facebook page.