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Strategies & Market Trends : Rande Is . . . HOME

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To: Rande Is who wrote (1611)1/4/1999 11:54:00 AM
From: BANCHEE  Read Replies (1) of 57584
 
Rande
Something you spoke about

Fear of Y2K glitches fuels
sales of solar supplies

By Vicki Vaughan and Travis E. Poling
Express-News Business Writer

Those who fear Year 2000 computer glitches will cause
services to go haywire are fueling some unlikely
businesses, including sellers of solar power equipment and
conventional generators.

"Our business has roughly
doubled in the last two
months," said Larry
Bowers, owner of Sun
Energy Systems in San
Antonio. "It is kind of
staggering. We've only
now gotten to where we
can handle the workload."

The real surprise is that many of the buyers of the solar
systems work in the computer industry.

"Computer people tell me they're just beginning to look at
the enormous workload they're facing with Y2K, and
they're starting to get concerned about their own homes.
They are concerned about having a reliable source of
power that they can count on."

The so-called Y2K computer glitch refers to computers'
potential to misread the year 2000 as 1900. If not fixed,
the computer malfunctions could affect everything from air
traffic control to power grids.

Bower said his business started picking up in September
"and it got real heavy starting in October."

Before this latest surge in business, Bowers said most of
his customers were people who believe use of solar
power is good for the environment and those who want to
save on utility bills.

Bowers has added two part-time workers — engineering
students at the University of Texas at San Antonio — who
are working full time during the school break.

Sun Energy sells solar systems that provide power to
residences, as well as a range of solar-powered
equipment ranging from windmills to generators and
pumps.

Bowers' newest customers are, in some cases, willing to
shell out thousands of dollars to fight the threat of potential
Y2K interruptions.

Solar panels to power electricity to a three-bedroom
house may cost $500, while a basic pump runs about
$180. But the pump requires solar panels to operate,
pushing its price up to $1,200 or more, depending on the
needs of the homeowner. To heat a house with solar
power costs about $4 a square foot, Bowers said.

SunTrapper Solar Manufacturing, another San
Antonio-based company, also has had increased orders
for systems. "There's been a move afoot, but it's been a
gradual thing that started about a year ago," said
SunTrapper owner Rick Fossum.

"I don't think (Y2K) is going to be anything disastrous, but
if anything goes wrong, people can at least keep their
refrigerators running," Fossum said.

At another San Antonio business, Emergency Power
Systems, owner Larry Baker said, "We've had a lot of
calls, and there are a few who have bought generators. A
lot of people are concerned about Y2K."

Baker said, however, that he hasn't tried to sell equipment
by tapping into people's fears about Y2K, "because I
really know don't if it'll be that bad."

Bill Wurz of Alamo Generator Service said Y2K
concerns have fueled a flurry of phone calls to his business
in the past four months — more than he has ever had in
28 years of business.

"People are worried about their families," Wurz said of the
callers. "These are not doom-and gloom-type people.
They say 'there's going to be a lot of this fixed, but there's
going be quite a bit that isn't fixed."

Wurz said about 20 generator sales in recent months have
been directly related to Y2K worries. At $11,000 for
equipment powerful enough to supply all the electricity in a
house and thousands of dollars more for propane tanks
and the services of an electrician, the investment is not
made lightly.

One generator manufacturer told Wurz that orders made
this month aren't likely to be filled until August, despite an
expected 60 percent increase in production for 1999.

Wurz said the hype and fears may be good for business,
"but we don't want to wait another 20 years for it to get
good again." f

Saturday, January 2, 1999
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