The Power Of the Sun

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The focus on all things green may be getting a little ahead of itself. Between 2005 and 2006, venture-capital investments in the clean-tech sector jumped from $623 million to $1.5 billion, with solar and biofuel garnering the biggest infusions, according to analysts at Lux Research. That's led to talk of an alt-energy bubble. "From the perspective of investors and entrepreneurs, this is the new Internet," says Lux Research president Matthew Nordan. Even employees at alt-energy firms acknowledge that renewable energy has suffered false starts in the past. Still, even skeptics suggest that for young workers charting a career path, the industry's allure is hard to beat. "It's virtually impossible to beat the long-term trends in clean tech," says Nordan.

Inside Xunlight, that optimism is pervasive. The firm, founded by University of Toledo physics professor Xunming Deng, moved into new offices just a few weeks ago. Last week the cubicles still had a pristine, unsullied look to them, and some employees didn't yet have working phones. The firm hasn't even made its first sale, but employees say its product—a superthin, flexible solar cell created using sheets of stainless steel—should be in high demand. Within two years, Deng expects to employ hundreds. Many will be twentysomethings, but there are veterans, too. "The excitement of being in a start-up is the same whether you're 32 or 52," says facilities VP Stan Rubini, as he surveys the mammoth empty warehouse in which Xunlight hopes to manufacture more than $200 million worth of solar cells each year. As fuel costs rise and concern about climate change spreads, investors and employees aren't the only ones hoping firms like this one find a viable solution. Almost everyone is.

This job growth depends on early-stage public support to spur market growth in the U.S. Without it, these firms will go to other countries, hire other workers, and other tax bases will enjoy the benefits.

U.S. public support is about to weaken substantially, with the 2008 expiration of the investment tax credit (ITC) for solar. Congress is debating an 8-year extension of the ITC.

I was on the phone last week with Santiago Seage, CEO of, Abengoa Solar in Spain, about building manufacturing plants and solar power facilities in the U.S. He said the plants would directly employ 200 people, and constructing the energy facilities would employ 2,000 or more. He said, "without the ITC extension, solar power will stop in the U.S. Leading companies will invest elsewhere."

And hire elsewhere. Congressman Jay Inslee has been proposing an "Apollo Project for energy," an all-out effort to not only solve the energy crises facing the world, but to make the U.S. a leader again. Jobs are one of the many long-term benefits he expects of such an effort. But we can have sustained job growth now, as long as we continue the incentives designed to help the emerging clean energy industry get its feet on the ground.

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Posted By: Denis @ 11/05/2007 10:31:15 AM

This job growth depends on early-stage public support to spur market growth in the U.S. Without it, these firms will go to other countries, hire other workers, and other tax bases will enjoy the benefits.

U.S. public support is about to weaken substantially, with the 2008 expiration of the investment tax credit (ITC) for solar. Congress is debating an 8-year extension of the ITC.

I was on the phone last week with Santiago Seage, CEO of, Abengoa Solar in Spain, about building manufacturing plants and solar power facilities in the U.S. He said the plants would directly employ 200 people, and constructing the energy facilities would employ 2,000 or more. He said, "without the ITC extension, solar power will stop in the U.S. Leading companies will invest elsewhere."

And hire elsewhere. Congressman Jay Inslee has been proposing an "Apollo Project for energy," an all-out effort to not only solve the energy crises facing the world, but to make the U.S. a leader again. Jobs are one of the many long-term benefits he expects of such an effort. But we can have sustained job growth now, as long as we continue the incentives designed to help the emerging clean energy industry get its feet on the ground.