IN THE spotlight

How has SolarProfit evolved since its creation?

SolarProfit was created in 2007. My partner and I started working in the renewable energy sector and specialized in photovoltaic solar energy because we thought the technology had a significant growth potential. We felt it could become the cheapest and cleanest way to generate electricity in the future. It is simple to install and the technology had a margin of growth in cost optimization. At the time, 2050 was thought to be the year of grid parity, meaning the convergence point at which solar would be cheaper than nuclear energy or traditional sources. Some optimists said 2030. Incredibly, our first project without public subsidies was completed in 2011.

In 2018, there was a 73% increase in photovoltaic installations. How do you evaluate the growth of the market in the post sun-tax scenario?

The elimination of the tax has certainly helped boost the market. From the total power registered in Spain in 2018, SolarProfit had more than 30%, while in Catalonia it was 84%. What the sun tax indirectly incentivized was for people not to legalize their facilities. In general terms, however, we were already doubling on a yearly basis before this regulatory change. Now, we are tripling.

With such high market penetration, what is the breakdown of your clients?

Initially, we started focusing on industry and big companies, since Spain was in crisis. We were selling solar energy projects projected at 6-10 years that would have a lifespan of 30-40. Therefore, the large companies were in a better financial position that allowed for more stability. After that, managers of said companies began to ask for installations in their homes, and we detected a business opportunity. We decided to make a small division within the company focused on housing. Currently, housing represents half of the company and is growing the most.

SolarProfit expects to double its turnover in 2020 and reach EUR20 million. What is your growth plan?

In 2019, we will finish with almost EUR15 million turnover, which was above our initial prediction. We will double again, with 2020 bringing us EUR35-40 million, expectations based on projects we have already signed.

Do you have plans to participate in the international market?

The truth is, no. We integrated Portugal because it is part of the peninsula, as well as the Balearic and Canary Islands. Outside Spain and the peninsula, we have done some projects because we have industrial clients with factories in other countries. Nonetheless, our focus is national. Spain has been isolated for 10 years from the global growth of solar energy, so there is much to be done.

Are there companies from other markets entering Spain that represent direct competition?

There is widespread competition from many small businesses. There are companies dedicated to electrical installations, for example, that are entering the solar field. Companies selling electricity and energy are also entering the market. But we are different. We are an integrated company with an entire value chain, from the factory to the installation. We have not identified any competitors with this ability.

At which stages is SolarProfit most present?

Our base core is engineering, in addition to which we have added different sections to the company. Our vision is to maintain that integration by buying directly at the origin, working to improve product design, and implementing the commercial strategy.

What is your relationship with public administrations via subsidies, and what is the proportion of solar installations in Barcelona?

There are different policies for the promotion of solar. For example, the Generalitat in Catalonia raised the subsidy for energy-storing batteries in 2018. The amount was not very high but allowed for some installations with accumulation systems to be made. At the local level, Barcelona also plans to promote self-consumption by subsidizing 50% of the cost of private home installations. In Barcelona, the percentage of buildings with solar panels has not reached 1%, whereas in Germany they have almost two million solar installations. The latest data published by Institut Català de l’Energia in June 2019 stated there were 480 installations in Catalonia.

Oscar Gómez