Disruptive Innovation of Solar Energy

1. Defining Disruptive Innovation What is a disruptive innovation? Disruptive innovation is a term popularized by Clayton Christensen’s widely known book The Innovator’s Dilemma. Christensen pointed that a disruptive innovation delivers currently neglected value metrics which are different from value metrics by mainstream markets. For example, think of Tesla’s automobile value metrics: self-driving and “green”; in contrast […]

Learning Curve of Solar Energy

What is a learning curve? Basically, a learning curve describes how a process becomes more efficient as more output is produced. This could be used to predict future cost reduction of solar PV. 1. The Learning Curve Solar PV is very disruptive to the electricity grid. It is expected to be cheaper by 32.6% for […]

Solar Power Plant Valuation

A manufacturing factory consulted Inspecro on electricity cost savings. So, we recommended a 77.5 kW solar power plant / PLTS. Then, the Managing Director asked, “Is this project profitable?” To answer that, we can calculate the present value of future savings: This might look confusing. But I promise you it will get easy very shortly. Electricity […]