SWOT Analysis

PanElectric Company
SWOT Analysis
● Solar power is unlimited and free; one hour’s worth of sunshine provides
more energy than the world needs in a year.
● Because a large surface area is required to collect solar energy at a useful
rate, PanElectric intends on turning a building’s outer walls into a solar
● Business model is scalable and potentially can be replicated worldwide.
● PV panel installation costs are being reduced through manufacturing
efficiencies and technological advancements. A continuation of this trend
will make solar PV systems highly competitive with carbon-based generation
● Unlike wind farms, no new transmission capacity is required (designed to
work with existing grid).
● Regulations – satisfies government-mandated green power requirements.
● The amount of sunlight that arrives at the earth's surface is not constant
(depends on geography, latitude, time of day, time of year, and weather
● Current PV panel technology is only 10-12% efficient.
● Company can only generate power during sunny periods.
● Each state has different regulations, there are no consistent federal standards.
● Technical knowledge requirement is significant, both about PV technology and
attributes of electricity industry/market.
● Large-scale financing (of $20 million or more) may be difficult, especially
under current market conditions.
● Perhaps difficult to protect business differentiation, model can be copied by
those with industry expertise.
Substantial market interest (“green revolution”), combined with significant
governmental incentives promoting alternative energy sources.
High public awareness about energy policy and growing momentum for
creating more alternative energy sources.
Growing interest in alternative energy generation at the household level
(rather than on large utility scale), including use of solar, wind, and biofuels.
Continued tax incentives.
• U.S. electricity demand is expected to increase by 30% over next 30 years.
Global warming concerns are nearly universally accepted, thus putting
intense pressure on reducing carbon emissions and carbon-fueled generation.
• National and state requirements for increased green power generation
• Increased use of carbon cap-and-trade offsets requires alternative energy sources.
Tremendous solar power growth potential as PV technology improves and
prices become more competitive with traditional generation.
• Solar power industry is projected to provide significant job growth, bolstered by
Administration policies to create new economic fundamentals.
• Customers could substitute other alternative energy or “green” sources,
such as wind, biofuels, hydroelectric, geothermal, and ocean waves
“Green” improvements for traditional generation sources, such as “clean”
coal, reusable nuclear fission, or natural gas, could prevent mainstreaming of
solar generation.
Emergence of new or currently unproven power generation technologies (ex.
space solar, nuclear fusion) could make current solar technology obsolete.