Bright Days Await SunPower

SAN FRANCISCO -- Government subsidies for solar panels are starting to erode -- and SunPower believes that may be just the kick in the pants it needs to get going.

In Japan, where the government tends to lead other countries in nurturing alternative-energy technologies, many subsidies have already ended. And as demand for solar panels grows among builders and homeowners, government funds in other countries are likely to dry up so market forces can take root.

When that happens, there will be a few key factors determining whose solar panels get bought: cost, appearance and efficiency. SunPower's panels have no edge on up-front costs. But their sleek black panels look better than the blight you see on many roofs, and the energy efficiency of those panels will help cut energy costs in the long run.

Such was the message that SunPower CFO Emmanuel Hernandez took to investors on Tuesday at ThinkEquity's G4 conference in San Francisco. "Our competitors often note that we have a manufacturing process that costs more, that we need more capital expenses to deliver the kinds of efficiency we have," Hernandez said.

But, he said, SunPower's panels deliver more watts at a cheaper rate than those of its rivals. "It's big enough to offset the higher costs up front," he said. "You need fewer of them up on the roof, fewer frames, less labor, everything."