More bloggage from Greentech Media's sold-out solar event in Arizona --

The first panel of today was focused on Arizona and what this sun-drenched state is doing to promote solar.

We heard two very different stories.  Solar City loves Arizona -- favorable incentives and lots of sun.  Advent Solar, on the other hand, despite being helmed by an Arizona resident, builds its product in New Mexico.

Lyndon Rive, the CEO of installer, designer, and financier Solar City bemoaned the lack of solar installations in the U.S.: "There have been 60,000 solar systems installed in the US in the last 30 years -- it's nothing!  There's been a lot of money and a lot of entrepreneurs but not much focus on delivery."  He added that, "Our mission is to bring solar to millions of rooftops."

Solar City covers Arizona, California, and Oregon and, not surprisingly, the biggest barrier to adoption is upfront cost, according to Rive.

When confronted with a $20,000 upfront cost most consumers become somewhat less environmentally concerned.  That's why Solar City has adopted a financing model that significantly reduces the upfront cost.  It is partnering with banks that have a tax appetite.  But a 30 percent tax credit is only effective if you are a profitable entity.

The Stimulus Bill changed the tax credit to a grant.  "The only problem is the delay in getting it out." according to Rive who sees it delayed until July and that will result in a slow first half of 2009.

"There is still a tremendous interest in the venture community. But the problem is if you're an entrepreneur -- whatever you think you're worth divide that by two or by three."

He finished by saying, "We need economies of scale.  That makes everything more efficient -- permitting, customer acquisition, etc."

Peter Green is the CEO of Advent Solar, a manufacturer of high-efficiency c-Si solar cells.  It was founded in New Mexico because the technology came from Sandia Labs in 2002.  Green joined in 2007 and he commutes to New Mexico daily.

Green believes that "there aren't many companies in the U.S. breaking new ground like we are."

He is currently in negotiation with a number of states to determine where to locate his manufacturing.  He "looks for infrastructure, talent and research institutions he can lean on.   The fourth thing he looks for are incentives but but he is finding that Arizona "is at the bottom."  because he needs cash and the powers that be in Arizona told him that they don't believe in cash.  He called it a "perishable opportunity" -- Arizona has to seize it now.

He added that he knows of some well-founded rumors indicating that: "You're going to see a lot of large companies buy a number of small companies in the near future."

Arizona looks to have the demand side of the solar equation under control but needs more attention to building its' manufacturing base.