GreenSage E-zine 02/2008

Investing in Building Integrated Photovoltaics Companies (BIPVs)
By Nick Hodge

There's been growing clamor lately about BIPV companies and BIPV Stocks. Which technology is the best? Which company should be invested in? And, for some, what is BIPV?

Let's try to clear this mess up.

BIPV stands for Building Integrated Photovoltaics and refers to solar energy technologies that are integrated into a building's façade or roof. The idea is that solar cells would not be an addition to a building, but rather incorporated directly into the building materials by way of shingles and glass (windows), although some BIPV components can be retrofitted onto a building.

In the future, solar cells may even be printed onto brick and other external materials, but that is highly contingent upon developments in nanotechnology and few investment opportunities exist for that technology right now. If anything does pop up, I'll be sure to pass it along.

BIPV Companies
For starters, let's take look at a few of the most prominent BIPV-related companies out there. I'll do my best to summarize each company's technology and investment potential for each.

Suntech Power Holdings Co. Ltd. (NYSE: STP)
When Suntech acquired Japanese company MSK Solar in August 2006, it instantly became a major player in the BIPV game.

Now a Suntech subsidiary, MSK Solar Buildings was, and continues to be, one of the top-ranked companies in the BIPV sector. The company offers a wide range of traditional cells that can be integrated into buildings' roofs as well as glass modules that offer supreme aesthetic value.

Here's a list of the company's BIPV solutions, taken right from their website:
· Just Roof--Ideal for gabled and pitched roofs
· Melty Roof--PV module with snow melting function
· Re Roof--Ideal for tiled roofs
· Photovol Roof--The original MSK BIPV roof
· Light Thru type--Glass with highly aesthetic finish
· Photovol Glass--Designed in tandem with architects

The Just Roof series would be the typical retrofit for many existing homes. When installed, all previous roofing materials are removed, and the panels become the new roof, complete with weatherproofing. Melty Roof is the same design, only with an added snow melting feature.

The Re Roof is better for flat or tiled roofs, and can either be installed for new construction or installed as a retrofit. The Photovol Roof adds to aesthetics by blending the panel color directly into the roof.

Suntech's glass BIPV repertoire starts with the Light Thru type. They are thin crystalline cells, sandwiched between sheets of glass, with spaces to allow light to pass through.

Photovol Glass combines some of the best BIPV cells with leading architectural practices. These amorphous silicon modules cut nearly 90% of the light heat entering a building, block 99.9% of UV rays and still produce electricity while allowing light to pass through.

Look for Suntech to continue to be a leader in the global BIPV industry. As the largest worldwide solar module provider, the company has several reasons for investors to look their way.

Their cells are high-efficiency, reaching up to 18%, and they offer a 25 year warranty. And their Chinese production base allows for low-cost manufacturing.

Given their annual net income grew 276% from the end of 2005 to end of 2006 combined with the recent market sell-off, I like this company under $50.

Open Energy Corporation (OTCBB: OEGY)
Well, from one extreme to another. Open Energy is currently the low man on the totem pole when it comes to BIPV companies. But I suspect it won't be that way for too long--especially because they've got Suntech on their side.

In August 2005, Open Energy signed an agreement to buy Toronto-based Solar Roofing Systems and its patented BIPV roofing membranes, dubbed SolarSave.

In November of that year, the company acquired Connect Renewable Energy Inc.--maker of BIPV roofing tiles. By April 2006, all the acquisitions were complete and the company had secured over $20 million in financing and was already producing prototypes.

The company's BIPV SolarSave products come in three lines:
· SolarSave Roofing Membranes
· SolarSave Roofing Tiles
· SolarSave Architectural PV Glass

Open Energy's roofing membranes are designed to be easily retrofitted on commercial, institutional, industrial and residential structures. They can be installed with no demolition or disposal costs and need no structural reinforcement.
The roofing tiles are designed to blend seamlessly with a building's shingles or roofing tiles, and can be installed just in just the same way. They can support up to 200 pounds per square foot of snow and they resist wind up to 125 mph. And they come in a variety of colors to match any building's roof.

Finally, the architectural PV glass is designed to meet the aesthetic, performance and structural requirements of architects and design professionals. They can be designed to match nearly any design specification because they can be made in a variety of colors, thicknesses, patterns and shapes.

And the best part is, they signed a letter of intent for strategic cooperation with Suntech Power back in May 2007. Per that agreement, Suntech is manufacturing Open Energy's SolarSave PV tiles, and the two companies will market each other's products in the North American market.

While the relationship is intended to by symbiotic, Open Energy should get the lion's share of the benefits -- at least for now. And at only $0.34, we'd take all we can get.