Overcast skies don’t bring much worry to the folks at Solar World California. Its solar modules gracing the roofs of businesses and private residences throughout California continue to generate power even without direct sunlight. A standard-size solar module manufactured in the Camarillo plant generates 175 watts of power on a sunny day. And on a cloudy day? “You would be operating at 25 percent, easy,” said Raju Yenamandra, director of sales for SolarWorld. As a business unit of large energy corporations, the most recent of which was Shell, the Camarillo facility never quite found its fit until last year when acquired by German-owned Solar World AG. The investment the corporate parent is putting into its U.S. operation reflects a confidence in the growth of the solar energy market as both business and residential customers face rising energy costs, supply not meeting demand and a world-wide interest in renewable forms of energy. Already the largest U.S. manufacturer of solar modules, Solar World California added to its manufacturing capacity this year with a multi-million dollar expansion of its assembly line in Camarillo, as well as remodeling its marketing and sales offices. In addition, a brand new 420,000-square-foot facility will open in Oregon to feed the company parts used in the assembly process. Those aggressive moves are smart decisions, said Greg Johanson, president of Solar Electrical Systems in Westlake Village, a distributor of Solar World modules. “They are doing everything in their power to make a cost-effective avenue,” Johanson said. “They recognize that California is one of the larger markets in the world and will be for the next 10 to 12 years and are dedicating their assets to make that happen and to be the player with their new factory.” Worldwide, solar companies produced $15 billion worth of product last year, according to the Solar Energy Industries Association in Washington, D.C. Solar World officials said that while solar module adoption in the U.S. trails behind Europe and other parts of the world, California stands out as a rapid growth market due to energy consumption outstripping energy production, no new power plants being constructed and an overall energy grid that is not robust. Helping out are incentives offered by the state and local municipalities encouraging businesses and residents to install solar modules. The state will spend $3.2 billion over a 10-year period through its California Solar Initiative. The Los Angeles Department of Water and Power budgeted $150 million for its incentive program through 2011 with a goal of 20 megawatts of solar power in the city by 2010. The incentive programs, in turn, bring a comfort to Solar World investors who know there is a long-term market for solar modules. “California leads the way in state programs,” Yenamandra said. In the Valley, solar panels have gone up at Rydell Automotive Group, Earth Island Natural Foods in Chatsworth, and Valley Car Wash in Van Nuys. Last year, Metro installed solar panels at the bus facilities in Sun Valley and Chatsworth that will generate up to 20 percent of the power. Warner Bros. Entertainment in Burbank installed 360 solar panels atop one of its studio buildings. Solar World modules are also found on the Woodland Hills Whole Foods Market, on ranger stations at Channel Islands National Park and at a UPS shipping facility in Palm Springs. “Our goal is to make solar modules as common and mainstream as a mobile phone,” said Anne Schneider, of Solar World’s marketing department. From marginal to mainstream The origins of Solar World are not unlike many large companies in that it started in a garage. The original owner then sold to the Atlantic Richfield Corp., later ARCO, which in turn entered into a joint venture with Siemens. For much of its 30-year history the manufacturer was the square peg in a round hole. It didn’t fit in with the other business units at Siemens, so a sale was made to Shell. But solar energy didn’t mesh with Shell’s business plan, plus there were no plans for long-term acquisition of the silicon used to make the individual cells. Publicly-owned Solar World AG is different from the previous corporate owners in that all the company does is produce solar-related products from the silicon to the finished systems. “We don’t have to compete for capital funds with other divisions in the company,” Yenamandra said. Feel-good, environmental reasons got the solar energy market off the ground but it is the economic benefits and cost savings that grows and sustains it. The residential and small commercial customers of Solar Electrical can pay off their systems in as little as five years from the savings on power bills, Johanson said. Investing in solar and other alternative energies has gone from the marginal to the mainstream in recent years. “Last year, solar raised billions in the capital markets, more so than any other renewable energy,” said Noah Kaye, a spokesman for the Solar Energy Industries Association. The organization’s membership rose from 100 companies in 2004 to 550 companies this year, although not all are manufacturers, Kaye said. Solar is also an attractive business and investment decision when compared with other forms of alternative energy. The supply of natural gas is limited while ongoing price increases and production plants are unwelcome. Wind energy is inefficient except when used close to the source and large amounts of space are needed for windmill sites. Noise is also a factor with wind-generated energy. Solar energy, on the other hand, is generated at the point of use and no power is lost putting it out over transmission lines, Yenamandra said. “It’s not loud and it doesn’t stink,” Schneider said.