Sunny Outlook.

SOLAR UTILITY FOUNDED BY A FORMER SPACECRAFT ENGINEER, IS CREATING PRACTICAL APPLICATIONS FOR A CLEAN AND RENEWABLE ENERGY SOURCE -- LIKE SOLAR FERRIS WHEELS AND STREETLIGHTS

SOMETIMES a business owner with big plans has to start out thinking small.

That's certainly the case with Ishaq Shahryar, founder and chief executive of Solar Utility Co. Inc., a Culver City-based designer of solar-power products.

After working for more than 30 years as a designer of photovoltaic cells (which convert sunlight to electricity) and owning a company that grew to become the nation's third-largest solar-electricity provider, Shahryar concluded, that his industry was hitting a wall.

The explosive growth that had been projected for the use and development of renewable energy sources in the 1970s was not materializing. In part, the inflation-adjusted cost of fossil fuels was falling, reducing some of the demand for alternative energy. But Shahryar says that solar-power companies also did a poor job in developing consumer products and drumming up new customers.

"Over the past 30 years, our industry has spent billions of dollars on research and development, when what we really need is better marketing and public relations," Shahryar said. So he started Solar-Utility to "bring solar power to the people."

Rather than following other solar companies That concentrated on "grid tie-ins" -- solar generating facilities that provide power to electric utilities -- Solar Utility is developing products for homeowners, businesses and government agencies to demonstrate that solar electricity is a genuine alternative.

The ferris wheel on the Santa Monica Pier operates from a photovoltaic system designed and installed by Solar Utility. So does a parking structure at the Santa Monica Civic Auditorium. Shahryar also has designed solar-powered emergency call boxes that dot local freeways, along with solar-powered lighting for bus shelters and billboards.

These are examples of what Shahryar calls solar power's "real-world applications." He says greater awareness of these applications will convince more consumers, businesses and governments to consider going solar.

Harnessing the sun

Alternative energy sources like solar and wind power have gotten a boost from "net metering," a recent regulatory change that lets utility customers who produce their own power effectively sell surplus electricity back to power companies. State and federal tax credits and subsidies are also available to people who install alternative-energy systems.

For about $20,000, Solar Utility can build and install a system that can supply about half the electric-power needs of a typical home. Roof-mounted photovoltaic panels collect solar energy and convert it to electric current. The power can be used immediately, or stored in batteries. When the batteries are fully-charged, the excess power is piped back to the electric utility -- the homeowner's electric meter literally runs backward.

Businesses or government agencies that are connected to utilities but produce some of their own power can also use net metering. The Santa Monica ferris wheel and car port use net metering, as do solar-powered picnic-style shelters that Solar Utility has built for several local public schools.

Susan Munves, Santa Monica's resource efficiency coordinator, says the installation of the two projects "went off almost without a hitch. We hope these successes will encourage others to start installing photovoltaics."

Another Solar Utility focus is reaching people in underdeveloped countries or other remote regions. For less than $600, a solar panel can be set up that is capable of providing all the power needed to run a couple of fluorescent streetlights, a telephone and a television set. With additional panels, it's possible to operate a water pump or a refrigerator.

Three decades ago, Shahryar was one of three scientists hired by the Spectralab division of Hughes Electronics Corp. to develop the first photovoltaic cells to power spacecraft. The cost of generating solar electricity on spacecraft at that time was $1,000 per watt. By the time Shahryar's team was done, they had converted the system for Earth use, at a cost of $3 per watt.

Here to stay

After leaving Spectralab, he founded Solec International Inc. in 1976. Solec, based in El Segundo, both designed and manufactured photovoltaic products. At one point, the company had more than 100 employees and was the nation's third-largest solar-energy company.

In 1985, Shahryar was contacted by associates of John Paul DeJoria, the founder of Paul Mitchell Hair Systems and a well-known environmentalist. DeJoria wanted to build a solar-powered car, for which Solec provided much of the technology.

When DeJoria met first Shahryar face to face, "after a five-minute conversation with me about what we could do with Solec, he became a 50 percent partner and investor," Shahryar said. Shahryar and DeJoria sold Solec to a consortium led by Sanyo Electric Co. and Sumitomo Corp. in 1994. Shahryar ran Solec for the consortium until he and DeJoria decided to start Solar Utility two years later.

"The members of our industry need to get together and hire some top-notch marketing talent," he said. "Solar electricity is here. It works. We have done a poor job of letting people know that."

Spotlight

Solar Utility Co. Inc.

Founded: 1996

Revenue in 1999: $4 million

Revenue in 2000: $13 million (projected)

Employees in 1996: 10

Employees in 2000: 15

Goal: To develop practical, Commercially viable applications of solar energy for consumers, businesses and governments

Driving Force: Greater demand for electricity in rural areas and underdeveloped countries