Motivated by political unrest in the Middle East, rising energy prices and global warming, both our federal and state governments now offer attractive tax benefits for solar systems in both the residential and commercial setting. The combination of economic and environmental benefits has spurred an impressive spike in investment, a proliferation of new solar companies, job creation and rapid consumer adoption. Yet, the solar industry in its current form is a flash in the pan.
One industry leader describes the trend as a "race to the bottom." Hoku Corp., seen by many as a star around the time of its initial public offering several years ago, now has all the makings of an early casualty. In an effort to vertically integrate the business, one of its two subsidiaries, Hoku Materials, has stalled while trying to build a polysilicon plant in Idaho. Unfortunately, in the time it has taken to get bricks and mortar in place, photovoltaic prices have plummeted. Hoku is nearly out of cash and struggling to restructure.
Every emerging industry is destined to move toward consolidation, as a few strong players acquire and crowd out competing startups. However, in the solar industry the process is being accelerated by waning tax credits and a rapid drop in the price of solar panels. Inevitably, the cost to acquire a system will fall, and, as solar tax credits dwindle, margins will likely erode.
The ability to survive and even thrive beyond the period of consolidation will be served by those firms that make it their business to bundle related energy and lifestyle technologies in a way that speaks to the core values of graying baby boomers and, increasingly, those behind them. As baby boomers eye the move toward a retirement community, assisted living and face the looming possibility of a nursing home admission, they are in search of creative, customized solutions.
There is now a tremendous market opportunity to create model homes and even model communities that bring together efficient use of green energy, water purification, eco-friendly building materials, recycling and edible gardens. Don’t forget domestic plug-ins for the electric vehicle.
Offer an optional package for "aging in place" that includes dwellings without stairs, equipped with safety bars, emergency buzzers and the latest technology to ensure medication is taken on time and to optimize connectedness with love ones. Existing technology includes activity monitors such as motion sensors, GPS trackers, gait monitors and accelerometers that identify falls. There are also a number of telehealth functions that range from vital signs and blood sugar measurements to video conferencing.
Dew-Anne Langcaon of Ho’okele says selecting the right technology requires a careful needs assessment that considers the goals of the immediate family, and the ability to integrate the objectives of involved health care providers.
"At Ho’okele we personalize technology tools specific to the needs of the family. Our iHealthHome system comprehensively monitors very independent seniors as well as those receiving 24/7 care. Our staff is experienced at assessing what technology would be helpful for a given situation."
Increasingly, those considering the move to a retirement community prefer to invest their 401(k)s in shares or residential units that constitute hard assets which can be left to heirs. They also relish the opportunity to participate in the decision-making that governs the community they may choose to join.
Solar industry leaders should consider new partnerships to provide comprehensive, healthy, sustainable communities that combine green energy and transportation with health and lifestyle solutions. Relevant partnerships are needed with innovative architects, design-and- build developers and health care. These cutting-edge models can become excellent investment opportunities for those who live in them. Residents will be attracted to these communities not only because they are aesthetic, efficient, environmentally friendly and financially sound, but also because they wish to enjoy a healthy social fabric and shared decision-making.
Ira Zunin, M.D., M.P.H., M.B.A., is medical director of Manakai o Malama Integrative Healthcare Group and Rehabilitation Center and CEO of Global Advisory Services Inc. Please submit your questions to info@manakaiomalama.com.
