SolarCity: A Historical Account
SolarCity is an American public company whose specialization is the provision of clean energy as a sustainable alternative from the energy derived from fossil fuels. It calls this better energy. The company is headquartered in San Mateo, California. Its primary services include designing, financing, and installing solar energy systems, execution of energy efficiency audits, and building charging stations for electric vehicles. In this light, it is worth illuminating the chronological account of SolarCity from its founding to the present time and use the same to predict the future.
The History of SolarCity
In 2006, Elon Musk, who is the chairman of the company, gave some business suggestions to his cousins Peter and Randon Rive. In an interview with the New York Times, Rive recalls how Musk advised them to investigate clean energy and the business prospects therein. Consequently, they started SolarCity in order to navigate away from fossil fuels.
In 2008, SolarCity adopted a leasing strategy that it would make solar city more affordable than electricity. The deal would significantly decrease the upfront cost of solar power installation. In addition to that, the leasing agreement meant that clients would pay a lesser amount per month than they would have paid should they have used electricity.
In 2010, the company expanded its client base and started shying away from being confined to providing services to the homeowners. In this regard, its target audience was expanded to include the government, businesses, and the non-profit organizations. In the month of May of the same year, the company completed the largest solar installation in San Francisco.
The year 2009 was significant for the company because it is the year that the company penetrated the electric car charging business.
In 2010, the company ventured into clean energy opportunities through acquiring Building Solutions- a software enabled home energy audit firm. The purpose of this acquisition was to provide evaluation of energy efficient building and renovation practices. The company laid measures that would ensure that more loans were available to the clients
In 2011, SolarCity announced a five-year plan that would see it invest more than $ 1 billion in solar photovoltaic projects that will target privately militarized communities.
The Future of SolarCity in Partnership With Tesla
The future of SolarCity will be follow another direction now that the company has partnered with Tesla to provide battery solutions. The greatest advantage with the partnership is that the Musk has the capital to inject in any valid business venture. Tesla has the advantage of having a strong reputation in electric cars. Its role in the automotive industry has translated to very strong efficiency in battery making. The duo will be in a position to command a higher share of the market due to their valuable input from each partner.
Why SolarCity was the right idea at the right time.
Business opportunities are founded based on the need to solve the problems affecting the society. SolarCity is an example of a company that saw the market potential in the area of alternative energy. It will continue to experiment on new ideas and form strategic partnerships. Overall, the company has a very bright future in the exploitation of alternative energy opportunities.