CEO Jeff Wolfe is pushing his solar tech company into the mainstream and turning a profit.

As America continues to search for solutions to the country’s energy and environmental needs, some companies are positioning themselves as potential answers to the problem. One such entity is groSolar of Vermont, the largest value-added national distributor of photovoltaic (PV) solar systems. Formed in 1998 by a husband and wife team of engineers with a desire to change the culture of American energy consumption, groSolar’s growth has been as blinding as the sun itself.

Jeff Wolfe, CEO and Founder

Seeing the light
Founded originally as Global Resource Options, the company’s intent was to bring sustainability to building design, and to provide renewable energy for more people. During the company’s first five years, the founders used their knowledge to procure residential and commercial projects in the Northeast, slowly building into a larger dealer and direct-installer operation. Eventually, groSolar became one of the largest in the region, creating an extensive distribution network on the East Coast, working on projects both on and off the power grid and in both residential and commercial sectors.

“New Jersey had started a solar program that was showing signs of good activity, and we helped develop some of their leading dealers in the market through a value added method,” said Wolfe. “It was innovative for the industry, as most solar distributors were not helping the dealers build their businesses.”

While groSolar was able to gain 35% of the New Jersey market in 2004, bureaucratic issues hurt the market late in 2005, forcing the company to diversify its distribution operation throughout the East Coast. Selling to a broader market allowed the company to expand its sphere of influence while it actively sought venture capital funds.

“We saw that to achieve our business plan goals, we needed additional capital to help us expand faster than the rest of the industry,” Wolfe said, adding that SJF Ventures, a fund that focuses on high-growth clean technology companies, led the first round of that capital campaign to the tune of $2.25 million. “We are the first distribution organization to achieve venture capital investments in solar.”

A new dawn
From there, the company purchased a distributor in Oregon with a big presence on the West Coast and in the Rocky Mountain region, taking groSolar national. But with all this expansion in a short time, Wolfe and his team were faced with the task of maintaining a balance between a shortage of the product and high demand for its service. At the same time, groSolar is part of an industry that is striving to reduce its own operating costs, making solar technology more affordable.

“The PV modules are the largest cost, and PV manufacturers with strong technical programs are investing more in research and development to improve their overall efficiencies. We work with them on a partnership basis to bring our ideas to them,” said Wolfe. “We focus on creating new methods to make the installation faster and easier to reduce that cost. Its not about making the installer run around the roof faster, you have to make them run less with fewer components to install.”

For solar technology to become more prolific and productive, thereby reducing the cost to the public, solar technology corporations will have to deliver services profitably. According to Wolfe, the industry is currently dealing with a silicon shortage due to the rapid growth of the technology. Historically, the cost of solar has decreased by about 7% per year, but the silicon shortage has reversed that trend in the short term. The goal is to get that price decrease back, while building a profitable industry with current pricing.

“I’m an evolutionist, not a revolutionist. I don’t think prices will drop by a third in one year. For the first 25 years of the industry, many of the pioneers sold solar too cheap, didn’t sell much, and didn’t make a profit,” Wolfe said. “We’re an American business, here to provide a product, satisfy our customers, and offer real value. People are very willing to pay for value and that’s what we provide.”

A bright future
While renewable sources of energy like solar, wind, and biofuels get more attention and respect today than in the past, Wolfe wants to see more. Not only does the industry need the help of state and federal efforts to level the playing field with the traditional power suppliers, it needs to take advantage of the fact that an increasing number of young people are interested in working for companies like groSolar.

“People who want to get into the industry tend to call us. That brings us some qualified people who might not ordinarily be attracted to a company this size but who understand the potential of the technology,” said Wolfe. “Our philosophy is to bring the best of American business into the solar business. This industry will be enormous, growing as federal and state incentives become more widely available, leveling the playing field with oil, coal and nuclear power.”

But unlike some technologies, solar is here today, and ready for installation. Unlike some kinds of energy sources, residential and commercial property owners can make an investment in solar technology today that will still be paying off 30-plus years down the road.

“Changes and improvements in the technology will be made, but unlike the computer someone buys today and is different tomorrow, a solar system will work for decades, creating the same electrons we’ll be using forever,” Wolfe said. “The perception is definitely changing, but we want solar to be as normal as buying a car. It certainly makes more sense.”