July 2010 - Swinburne University of Technology

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swinburne JULY 2010 ALUMNUS PROFILE 16 How gran’s gift turned sunlight into people power Key points Former Swinburne student’s experiences in business make for lessons worth sharing. Persistence is as necessary as ideas for success in business. Banks and governments can test entrepreneurial nerves. Clear Solar’s Paul Wilson. PHOTO: PAUL JONES This Swinburne student actually has a lot to teach, after interrupting his studies to build an energy company BY TIM TREADGOLD PAUL WILSON will not be the oldest student on campus if he goes through with plans to finish his engineering studies at Swinburne University of Technology, but he will be one of the more successful, and for that he can thank the community’s rush into sustainable energy – and his granny. Clear Solar, an Australian leader in rooftop electricity production using photovoltaic technology, is 38-year-old Mr Wilson’s latest and biggest contribution to the environment. An earlier effort, when he was much younger, involved planting 10,000 gum trees to lower his personal carbon footprint. “I’ve always been passionate about the environment,” he says. “What I’m doing now is part of a 20-year journey.” What he is also doing is creating a business with an astonishing growth rate. As Australians embrace photovoltaic power production, and make use of generous government subsidies, Clear Solar’s sales have rocketed up from $3 million two years ago to $100 million this year. That success has encouraged Mr Wilson to recruit a chief executive for the business to ease his workload, and to plan a return to Swinburne to complete what he started in 1990 before discovering opportunities in the business world while on an industry placement in Germany in 1992. “The challenge has been to find a chief executive for Clear Solar who I could trust more than I trust myself,” he says. “Now that I’ve done that, I should have time to do things I want to do, rather than things I have to do, and one of those is to finish my degree. If asked, I might even have some useful knowledge to pass on in a lecture of my own.” If Swinburne takes Mr Wilson up on that suggestion a lot will be heard about how
JULY 2010 swinburne a yet-to-graduate engineer has applied his knowledge to the business world, especially sustainable business, with some advice on dealing with banks and handling the cashflow challenges of rapid growth. Mr Wilson’s shift into business started in Germany when he saw two innovations: advanced video-surveillance systems and photovoltaic electricity production. On his return from the overseas industry placement, Mr Wilson decided to pursue business opportunities rather than return immediately to Swinburne. The first venture was in video-surveillance systems with the creation of Clear Security, part-funded with a gift from his grandmother. “Granny gave me my $7000 inheritance early to see what I would do with it,” he says. What he did was buy a second-hand Toyota HiLux and a fax machine, before visiting a shopping centre and asking every shop owner whether they wanted video surveillance. None did, bar one. “He said he probably didn’t, but if I kept asking he’d buy, and he did.” His business was launched. For business students it is a priceless lesson in how perseverance can be as important as a bright idea. While building his successful video-surveillance business Mr Wilson tried to find a way to do the same with solar electricity production, but “there was no way I could get the numbers to add up,” he says. That changed three years ago when the Australian Government introduced its solar panel rebate scheme, which slashed the price of installing a photovoltaic power system, sparking a householder stampede that is getting stronger by the month. The reason for the rush is that more people are seeking to make a personal renewable-energy contribution. There also is a sizeable financial incentive. A photovoltaic system costs between $10,000 and $15,000 and is installed at a cost to the homeowner of between $2000 and $2500. Because the systems generate power for the home and sell surplus electricity into the grid, even the cost of the initial outlay can be recovered in about five years, and it will be less when a new generation of more efficient photovoltaic cells is introduced. Understanding the financial intricacies of the renewable energy industry has been as important to Mr Wilson as the technology itself, starting with the way Renewable Energy Certificates (RECs) are created, acquired and traded. Then there is the challenge of finding a bank that understands a renewable-energy business. The first bank he approached did not. “They told me pretty early on that the business wouldn’t work.” Fortunately, another bank had a different perspective and accepted his business ideas. Then came the challenge of dealing with the Australian Government, a rhetorical supporter of renewable power, but inconsistent at putting up the money, creating cash-flow problems for companies like Clear Solar, which rely on government payment to cover their own bills, especially for the imported solar panels. “Slow government payments have been a problem,” Mr Wilson says. “At one stage payments had blown out to 120 days. More recently it’s been around 90 days. They are promising to get back to 42 days.” When Mr Wilson makes his return to Swinburne, students of sustainability might hear some unexpected observations from a man who has emerged as a clear leader in the field of renewable energy. In particular, he is not sad that the Carbon Pollution Reduction Scheme (CPRS) has been deferred by the Australian Government. “The issue I had with the CPRS and the Emissions Trading Scheme is that it puts all the responsibility into the hands of major producers and consumers,” Mr Wilson says. “There’s no reward for the end user. “What we have with our solar power business is a way for people in the community to get a chance to be masters of their own energy use … make their own power, and feel good about their contribution. What we’re doing at Clear Solar is providing a sense of individual ownership of the sustainability issue.” •• CONTACT. . Swinburne University of Technology 1300 275 788 magazine@swinburne.edu.au www.swinburne.edu.au/magazine IMAGINE WITH ACCOUNTANTS. How can calculators and balance sheets be used to combat crime? Accounting Professor Suresh Cuganesan is a leading researcher in performance measurement who is helping Victoria Police and the Australian Crime Commission combat organised crime. Read all about it in the back issues of Swinburne Magazine, available when you subscribe online at swinburne.edu.au/magazine For more fascinating Swinburne University of Technology discoveries, subscribe online for free. QUESTION EVERYTHING 1300 275 788 swinburne.edu.au/magazine CRICOS Provider: 00111D
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July 2010 - Swinburne University of Technology

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