10 Reasons
Why Solar Energy is Increasingly Important to the U.S.
1. The solar industry is in a period of explosive growth.
The worldwide annual growth
rate of photovoltaics (PV) manufacturing has been above 35% for the past five years. World production in 2004 will be more
than one billion watts, ten times 1996 levels and enough to power all the households in Atlanta, Georgia. California represents
the third largest market for PV in the world, with an industry at $300 million and growing. There is 71.5 MW of grid-connected
solar installed in California. Solar thermal is one of the leading sources of renewable energy worldwide, with an installed
capacity of 70 GWth. The cumulative shipments of solar thermal collectors since 1995 replace almost 1.3% of total US natural
gas demand. More than 1.5 million homes and businesses in the United States have invested in solar water heating systems.
An estimated 35,380 swimming pools were installed with solar collectors in the past year alone. And concentrating solar power
systems currently produce 354 MW of clean, reliable power in the California desert – enough for ca. 120,000 homes.
2.
Solar energy enjoys broad public support.
Polls show that more than 90% of Americans support greater use of solar power. In
a June 2004 poll conducted for Environment California Research & Policy Center, 72 percent of Californians said they favored
Governor Schwarzenegger’s campaign goal to build half of all new homes with solar power. 63 percent would be willing
to pay more to buy a solar home, and 60 percent support providing subsidies to encourage builders and homeowners to install
solar systems.
3. More American jobs.
Every megawatt of solar power currently supports more than 35 jobs, 5 times the rate of more conventional
energy sources.
4. Easy to site.
Solar is one of few generating options that work well almost anywhere—whether in a crowded urban
center or a rural farmhouse. Solar is even welcome in Los Angeles, where other new power sources are impossible to site because
of air quality, noise, or lack of space.
5. Predictable energy costs.
A solar system’s fuel is always free. Solar can reliably produce energy at the same cost
for more than 30 years. This is more important than ever as imports of natural gas are rising and prices are at record levels.
Moreover, solar generation peaks when demand does - on hot summer afternoons when utilities have trouble meeting demand. By
backing down this peak, solar can substantially increase operating margins and decrease prices.
6. Greater grid stability.
Even
in a crowded downtown area, solar power can be sited on customers’ roofs to lower peak demand and avoid expensive grid
upgrades. Additionally, at a critical moment, a single large power plant is more likely to fail than thousands of smaller
solar systems.
7. No air pollution or greenhouse gas emissions.
Each year a residential solar water heater prevents 2.5 tons of CO2 emissions and
NOx emissions equivalent to driving an average car for about 4000 miles. Each 1000 MW of CSP capacity displaces 4,600 million
lb of carbon dioxide (CO2), 3.8 million lb of sulfur dioxide (SO2), and 3.6 million lb of nitrogen oxide (NOx) every year.
Every residential PV system reduces greenhouse gas emissions as much as removing one car from the road.
8. Minimal water consumption.
Solar
power uses 98% less water per MWh generated than the most efficient natural gas generation.
9. The sun shines in every
community and congressional district.
A typical home in Maine needs 291 ft2 of roof space to meet one-half of its typical electricity needs—only
25% more roof space than needed in sunny Los Angeles.
10. It is increasingly economical.
Since 1978, PV prices are down more than 95%. PV
is closely related to the microchip and LED industries, and has taken advantage of many advances made in these devices’
manufacture, while the explosive growth of the industry has enabled ever more automated, large-scale factories to be constructed.
Solar water heating applications, meanwhile, are cost-competitive with conventional energy technologies. The price of a PV
system varies from home to home. Size, permitting, installation requirements, and roof type all influence the cost. The total
cost is also offset by a number of factors, including financial rebates, incentives and subsidies, loan options, and the ongoing
savings the customer will realize from generating their own electricity. The economics are significantly better in states
and municipalities that have high electricity prices, aggressive incentives and regulatory policies, or a combination thereof.
California has a thriving climate for solar; the state offers residential customers both a 7.5% tax credit and a $3 per watt
rebate on systems less than 30 kW in size, and allows solar customer-generators to sell electricity back to the grid. A typical
solar water heating system will save consumers thousands of dollars over the life of the system. Solar water heaters can reduce
energy consumption by 50% when compared to a conventional water heater. Most systems pay for their installed cost in avoided
energy purchases in 4 to 8 years. A solar pool heating system will pay for its installed cost in 2 to 3 years. The average
cost of a 300 square foot solar pool heating system is about $3,500, or around $12 per square foot.
California is already the 3rd largest consumer
of solar power equipment behind Germany, but gets 40% more annual sunlight than Germany (#2) and 20% more sunlight than Japan
(#1).
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