Two Massive Breakthroughs for Solar Power For Homes
Posted on 2009 under solar power for homes, solar power residential | 1 Comment18 Jul
17 July 2009 may not have seemed like a major day in history. However, it was a day in which two major news stories broke within the solar power industry.
On the same day that a Californian company brought its prices down to the per watt level that can viably compete with traditional fossil fuel, it was announced that the total global capacity for solar power generation may double by the end of 2010.
Fresco Solar, from Morgan Hill, California announced that it will construct solar photovoltaic ground arrays of one megawatt or more in size anywhere in the USA for just $2.95 per watt.
This new breakthrough pricing, when coupled with Federal tax credits and other local initiatives such as the California Solar Initiative, brings solar photovoltaic power within the realm of grid parity. This is the moment many solar power enthusiasts have been waiting for.
Just as this happens, news arrives that points out that as China and the U.S. increase demand for clean energy, it has been estimated that new solar power generation may double next year.
A spokesman from SAM (the Smart Energy Fund) indicated a jump to 10 gigawatts of electricity produced from the sun in 2010 from an estimated 6 gigawatts this year.
It is expected that after the financial slump of this and last year, two new regions will become big players in the solar industry. They are none other than the U.S.A. and China.
As a result, it is thought that new investments in clean energy may surge to $450 billion in 2012 from $150 billion in 2007 as the U.S. and Europe step up efforts to reduce emissions.
Add to that the possibility (as indicated by the Chinese Renewable Energy Industries Association) that China might increase their solar capacity to 10 gigawatts by 2020. To put that in context, that could create enough solar energy to supply about 10 million homes.
Suntech, the world’s largest maker of solar-power modules, and Trina Solar (both based in the Jiangsu province of eastern China) are among Asian companies that may gain as lower production costs give them distinctive competitive advantages over manufacturers in Europe and the U.S..
The carbon credit system is helping. Increasing the use of solar power generates more carbon-emission credits for the major polluters in Europe.
Prices of carbon credits, used by European nations to offset emissions, may stay at current levels as a contraction in manufacturing cuts demand for the credits.
Meanwhile, Asian solar businesses re being looked upon favorably compared with wind power makers. New wind generation capacity may expand but there are not as many opportunities to invest in Asian wind companies as in solar makers. Because of advances in technology, the solar industry can reduce costs quite dramatically while wind turbine costs can not decline at the same pace.
So this all seems like extremely good news. However, all that being said, much of this remains slightly out of context when you consider that the combined amount of electricity produced from both wind and solar projects is still likely to account for just under 2 percent of the global output.
Clearly there is much work to be done if our alternative clean sustainable dream is to materialize in time.
By Sam Deane
Your solar power for homes guide.
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Info via: bloomberg.com Pic via: stock.xchng
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by sol corporation, on July 20 2009 @ 12:15 pm
Interesting…i am curious to see if Fresco’s dubious claims actually pan out.
Although they might be thin in terms of solar and energy experience, I am sure all their silicon valley connections will help them get somewhere…that always works right?