AS a professor of earth sciences at Imperial College in the mid-1980s, Jeremy
Leggett ran a research project on the geological history of the planet. His
studies left him extremely concerned.
“I got really worried about global warming and climate change - well ahead of
it being fashionable,” he said. “Everything I have done from then on has
been trying to do something about that.”
Leggett left his teaching post determined to make a difference. He became an
environmental campaigner and the scientific director of Greenpeace
International’s climate campaign.
Trying to persuade companies that they had something to worry about was
important, but Leggett felt he could do more. Having seen Japan and Germany
deploy large-scale solar-energy infrastructure and believing strongly that
solar power can help to combat global warming, in 1997 he began work on
plans for a solar-energy business.
From a shed in Richmond, Surrey, Leggett founded Solarcentury, initially a
not-for-profit advocacy organisation, seeking to bring together solar-energy
firms and institutions concerned about climate change.
In 2000 Solarcentury raised £6m from the founder of the World Business Council
for Sustainable Development, Stephan Schmidheiny, and transformed the
organisation into a commercial business, designing and selling solar panels.
The money also went into PR and marketing, including a national advertising
campaign in newspapers. “At this stage solar energy was a cottage industry,”
said Leggett. “We had to persuade people that it actually works in cloudy
Britain.”
Making the case for its products was tough at first. The business was losing
money, and in 2003 it came close to folding. Desperate for more cash,
Leggett began to look for a second investor. In 2005 Scottish and Southern
Energy invested £1m for a 7.5% stake in the company.
Scottish and Southern took on the installation work - fitting the panels.
“Scottish and Southern came in because we were aware we couldn’t do this on
our own,” said Leggett. “We needed a ‘catapult partner’.”
With the added workforce, customer base and funding, Solarcentury finally
broke even. However, Leggett’s decision to collaborate with a conventional
energy company prompted questions.
“People asked me what on earth I was doing. I had set up a company that aimed
to be commercial but green, and there I was getting together with a dirty
great utility. My answer was this: if you really want to make a difference
you have to work with traditional energy companies and help them to change.”
That same year the construction company Interbuild accredited Solarcentury’s
solar tile - which can be installed like a traditional domestic roof tile -
as “best exterior product”.
“That award was key,” said Leggett. “Being the best product in the entire
construction industry showed us we really had something.”
In 2005 the company reached an operating profit of more than £500,000. Last
year a further injection of £13.5m from the investment funds Good Energies
and Zouk Ventures significantly boosted the company’s growth. The funding
went into product development, with Solarcentury creating a whole range of
products.
Leggett also used the money to strengthen his management team, including
hiring the former managing director of Sony UK, Derry Newman. Solarcentury
outsources its manufacturing to Sony’s factory in south Wales.
Turnover has reached £19.2m and Solarcentury operates in France, Italy and
Spain as well as Britain.
Leggett remains ambitious. “We still think the company is very much unfinished
business,” he said. “The solar industry, despite its growth rate, is still a
tiny fraction of global energy.”
Leggett, who owns 9% of Solarcentury, is still motivated by his environmental
concerns. “We are living in a world where more and more people believe solar
electricity is going to be cheaper than conventional electricity,” he said.
“I believe that is going to be very soon.” Leggett, 54, puts his success
down to his perseverance and to hiring a passionate, talented team. “I only
hire people who are really enthused about our mission, as well as being
good,” he said. “That creates a good culture. That is what has got us
through the really tough times.”
He advises other entrepreneurs to heed his example. “Pay as much attention as
possible to your staff,” he said. “Hire people who are smarter than you. I
see so many company founders hiring people who won’t threaten them in any
way, intellectually or otherwise. That’s a huge mistake.”
