Now is the Time for CEO's, COO's and CFO's to Evaluate the Use of Solar Pan

1. N O W I S T H E T I M E F O R C E O ’ S ,
C O O ’ S A N D C F O ’ S T O
E V A L U A T E T H E U S E O F S O L A R
P A N E L S !
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2. M A P P r e s e n t a t i o n B y - B o b D i c k s o n
Bob Dickson, the founder of Dickson Consulting, is a partner with
McCracken Alliance Partners (MAP). After working for a major
independent accounting firm for almost ten years, Bob has been
a financial officer of smaller and publicly traded companies for
almost 40 years. In his career at Price Waterhouse, Bob had
experience auditing electric utilities. Bob’s LinkedIn profile can
be found at:
https://www.linkedin.com/in/dickson1/
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3. H e r e C o m e s T h e S u n !
( T h e B e a t l e s )
• Most Americans believe that the climate is
changing, and the earth is quickly getting
warmer.
• Many attribute natural disasters such as forest
fires and hurricanes to climate change.
• It is believed that use of fossil fuels, including
burning to generate electricity, is a primary
cause of climate change.
• Scientific opinions differ but public and political
opinion is not always based on scientific data.
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4. T h e P o l i t i c a l A g e n d a !
• Joe Biden, US President Elect: "We’re not just going to tinker around
the edges,” he said as the Democratic candidate, promising “historic
investments” in solar, wind, batteries and transmission.“
• Biden has further detailed the clean energy and infrastructure plans he
would pursue, including $2 trillion in spending over four years.
• This amount would significantly expand the less than $100 billion
annually that currently goes to clean energy technologies.
• To achieve 100 percent carbon-free electricity by 2035, Biden proposed
extending clean energy and efficiency tax credits.
• It seems that one way or another significant funds will be available to
invest in solar power projects.
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5. T h e I m p a c t o f Ta r i f f s
• One of the Trump Administration’s decisions was to impose additional tariffs on solar
modules and inverters imported from China and elsewhere.
• The price for high-efficiency PERC (Passivated Emitter Rear Cell) modules in the United
States is nearly double the price the rest of the world pays for such modules.
• In multi-megawatt quantities, such modules are about 32 cents to 35 cents per watt in
the United States while they are only 17 to 19 cents per watt when manufactured.
• With shipping costs of 1.5 cents to 2 cents per watt, a large portion of this price
differential is the tariffs.
• One of the first things President-Elect Biden may do, is order the International Trade
Commission to evaluate these tariffs and decide if they should be eliminated.
• Reducing or eliminating the tariffs on solar modules and inverters should have positive
effects on solar development.
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6. T h e T i m e i s N o w !
• Now is the time for CEO's, COO's and CFO's to evaluate significant
use of solar power.
• Federal support, and perhaps subsidies, will develop to enable
projects.
• Potentially decreasing costs for solar projects will make them
more economically feasible and will increase the return on
investment.
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7. • On an overall basis a company should evaluate a significant
investment in solar panels will result in an adequate return on
investment. Some considerations are:
• Is there adequate space to install solar panels, such as a large
flat roof?
• Is the company in a geographic position to optimize the use
of solar panels? Is there enough sunshine?
• Does the company consume enough electricity to justify the
investment.
A r e S o l a r P a n e l s a F i t ?
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8. W h a t To D o N o w ?
• Establish a cross functional team to evaluate the use of solar
panels!
• Establish an outside advisory board, including a financial
executive.
• Strengthen or establish relationships with outside organizations
such as your electric utility company and state and local
officials.
• Monitor government policy and regulations to understand their
impact and perhaps lobby to improve any legislation.
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9. A n E x a m p l e P l a n f o r E xe c u t i o n -
P a g e 1
 Research industrial solar panel projects completed by other
companies.
 Create a preliminary outline of the detailed project steps of the
team and hold a team meeting to discuss the steps.
 Research and summarize the historical energy consumption, utility
rates charged and the cost to the company. If clarification or
additional details are required, the utility should be contacted for
the additional information.
 Based on company business forecasts, perform an estimate of
future utility requirements and costs.
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10. A n E x a m p l e P l a n f o r E xe c u t i o n -
P a g e 2
 Identify and contact a small number of solar panel system
providers and installers for preliminary discussions and
evaluation, including their capabilities for structural and
electrical engineering.
 Develop a request for proposal for a few solar panel providers
and installers, which would be approved by management, and
distribute the RFP to targeted companies.
 Respond to questions on the RFP from potential suppliers and
update the RFP, if necessary.
 Obtain responses to the RFP from potential suppliers and after
review invite them to make a formal presentation to the team
and management.
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11. A n E x a m p l e P l a n f o r E xe c u t i o n -
P a g e 3
• Identify and evaluate potential sources of financing, including grants
or government loans, for the installation and integration.
• Obtain financing proposals, summarize, and present to management.
• Compare and summarize the responses to the RFP and identify the
recommended supplier.
• Team presentation of the RFP responses and the financing proposal
and recommendations to management.
• Obtain management approval for the project, the recommended
supplier and financing source and terms.
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12. A n E x a m p l e P l a n f o r E xe c u t i o n -
P a g e 4
 Notify recommended vendor and financing firm of intent to contract for
installation and integration and financing.
 Obtain and review draft legal agreements from the recommended vendor
and financing and coordinate review with legal counsel, as necessary.
 Finalize agreements for management signature.
 Monitor the selected supplier performance against contracts and plans and
evaluate progress for payments. Bring the supplier contract or performance
variances, if any to managements attention and outline risks and potential
remedies.
 Conclude project and finalize contract commitments.
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13. M a n a g e m e n t B e n e f i t s o f a n
A d v i s o r y B o a r d
• Focused input with adequate time devoted to the process.
• Greater efficiency from a smaller group with specific expertise.
• Less pressure on management. Works with management by providing
advice; does not govern management.
• Consistent, trusted advice available as needed.
• Accountability to keep the project on-track.
• Less public scrutiny than a public organizations board of directors.
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14. R o l e o f a F i n a n c i a l E xe c u t i v e o n
A d v i s o r y B o a r d
• Independent financial perspective on project.
• Evaluation of return on investment of project or mandate.
• Evaluation and monitoring of budget vs. actual cost.
• Assurance to the board, finance or audit committee that project is
under financial control.
• Broad perspective of financial implications of project…earnings per
share, debt financing, operating impact, etc.
• Risk assessment and management.
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15. • Political change and concerns over climate change may result in
new legislation.
• If acted upon, new legislation may benefit your company,
through subsidies and reduced costs.
• Accordingly, now is this the time to begin evaluating utilization of
solar panels in your facility!
I would be pleased to serve as a member of your
advisory board for your solar panel project!
Yo u D o n ' t H a v e To B e A We a t h e r m a n
t o Te l l W h i c h Wa y T h e W i n d B l o w s
( B o b D y l a n )
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16. T h e Wo r l d H a s C h a n g e d ! S e r v i c e s F r o m
A n y w h e r e /A n y t i m e !
• There is no longer a need for corporations to incur
high fees to cover the overhead of advisors or
consultant’s offices, travel, down time and other
expenses.
• Many of these services can be conducted from
anywhere with enhanced ability to stay in touch with
and advisor or consultant.
• Technologies such as Zoom have enabled this
significant change in business practices and when
taken advantage of companies can have superior
service with reduced costs.
• The quality of service may be higher because
distractions such as travel, and office inefficiencies
are eliminated.
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17. C o n t a c t I n f o r m a t i o n
Bob Dickson
724-272-1527
bo@dicksonconsulting.biz
www.mccrackenalliance.com
Connect with me on LinkedIn
https://www.linkedin.com/in/dickson1/
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18. Thank You
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