Innovation

PV Squared's innovation is its solar panels. These panels, purchased from external vendors, are installed in both residential and commercial buildings. There were four members of the company when it started in 2002, and all of them wanted to get involved in the renewable energy business. Two of the main challenges that the company faced in the beginning were finding people to purchase solar panels and building up capital, according to Kim Pinkham, Human Resources Manager at PV Squared. They discovered two solutions to the company's problems. One solution was the state of Massachusetts put in a support program that gave incentives to homeowners to invest in solar, making it cheaper for people to buy solar powered units for their homes. Another solution that came was a grant from the Cooperative Development Institute. This grant allowed PV Squared to invest more time and money into finding vendors to produce the physical panels that they used to install into people's houses.

The purpose of the innovation is quite simple, to help combat climate change, as well as save people money on their electric bill by either reducing the bill or eliminating it altogether. "Our goal is to work with technology in order to change the planet in a democratic environment." This quote from Kim easily encapsulates the company's mission, which it does through PV Squared's business. What PV Squared plans to do is to change the planet, a planet that is running out of non-renewable sources of energy like oil and coal.

Inspiration

"Grassroots organizing is a strong part of the culture here." Kim's quote about the area of Massachusetts that PV Squared is located within shows how the inspiration for such a great business product and business philosophy can come from an area's culture. The Pioneer Valley is an area full of natural beauty, comprised mostly of rivers, trees, and mountain ranges. Not only is the area very green, the people who live in the area appreciate the beautiful scenery, and act to preserve it as best as they can. Another quote from Kim explains the attitude of the community. Reflecting on the start of the business, "there were more Prius's than regular Toyotas."

Since the community already had a natural proclivity for the preservation of the planet, it made the solar panel business fit quite naturally into the Pioneer Valley. Not only did the actual product and service fit, the business philosophy of a worker-owned cooperative also made perfect sense for a community and business working to be as environmentally friendly as possible. PV Squared promotes the co-op model as much as its products, since it is an equal part of the company's mission statement.

Having the workers of the company be the owners of the enterprise makes a huge difference when it comes to an employee's sense of accomplishment. Kim mentioned that one of the ideas that inspires her to do her best is the fact that the business model benefits all of the employees within the co-op. Every person's voice matters, so any employee has the power to change a part of the business at a much faster rate than the traditional business model. Instead of basing ownership of the company off of stocks, basing it off of employment makes every individual working at the company feel like a part of a team. Instead of bosses telling subordinates what to do, there are co-workers that are helping the company do what is best in order to do the most good.

Overall impact

PV Squared's overall impact is that it is changing the planet in several ways. One way that the company is impacting the planet is by providing solar panel units to residential and commercial buildings in order to shrink carbon footprints and lower costs. In terms of an aerial sense, PV Squared has impacted the Pioneer Valley because people are aware of its presence. Utility companies know who the co-op is, as well as people at the state level of government, according to Kim. Officials have asked PV Squared in the past questions about climate change and how solar can impact the state government, and the co-op has provided great answers.

Another impact is that the co-op is changing how the world views the business model. Traditionally, most co-ops are small businesses, but PV Squared is a great company that could potentially show larger businesses that a co-op model of business is doable and very rewarding to employees. Having employees be owners is a great way to keep employees at the same company, since the sense of purpose and teamwork at such a high level will deter people from going to another company.

Business benefit

PV Squared's business has increased since its inception in 2002. According to Kim's estimates, the co-op's revenue has increased by millions of dollars compared, as well as grew from four to forty-six employee-owners. In terms of number of systems, there are more residential units than commercial units. This can be explained due to the fact that PV Squared established its commercial division in 2012-2013, so its experience isn't as large as the company's residential division. However, in terms of wattage (how much power the solar panels create), there is a pretty even split. Although there are more residential units, the sizes of these properties are smaller than the sizes of the commercial units. Therefore, more panels can be put on the average commercial unit than the average residential unit.

However, there is plenty of room for growth in the future. "We only tapped 1% of places that could take solar," according to Kim, and electric cars is a market change that could greatly impact the future of PV Squared. Some of the employees are being trained in installing electric car powering stations, which will be very important once electric cars become the main source of transportation. People will need more electricity to power the car, which will make people seek out alternative sources of power to match the added demand.

Social and environmental benefit

"We appreciate what we built." Kim's quote about how the employees at PV Squared see the work that they do is important because it drives how society and the environment benefit from the co-op's work. Having solar panels installed into a person's house benefits the environment because there is reduced demand from pollution-creating electrical plants to provide energy. Instead, solar panels, that don't create any pollutants, provide the energy for the house. Kim also mentioned in my interview with her that after the panels are installed into the house, members of the house will often inquire about other ways to become more green. After panels are installed, some houses start to ask about getting a green refrigerator, or more energy efficient windows.

Interview

Kim Pinkham, Human Resources Manager