Many people still see solar energy as the expensive but eco-friendly alternative to fossil fuel power. What they don’t know is that in 2011, the prices of solar panels and other equipment necessary for producing solar energy fell off a cliff. What does that mean and how did that happen?
Well, first of all, China got into the solar energy game. As always, they undercut production prices of solar panels, forcing some U.S. and German solar panel manufacturers into bankruptcy. Those companies particularly reliant on government grants and incentives were hardest hit. While the plunging prices are not so good for the economy, it is great news for those interested in creating their own eco-friendly power sources.
“Everyone's missing the real story and it's amazing how brain dead some people are," said Jeremy Rifkin, an adviser to the German government and European Union on climate change and energy security. "It's absolutely a positive thing that solar prices are dropping faster than anyone thought they could.
"It's actually a great success," the U.S. economist told Reuters. "Those criticizing solar for that are being ignorant or disingenuous. It's a winnowing out process similar to what the computer and communications sectors went through. More companies that can't stay ahead of the curve will go belly up."
People in the U.S. have taken advantage of the falling prices. According to the Solar Energy Industries Association (SEIA), solar power installations in the United States increased 67% in the 4th quarter of 2011. Part of that growth is due to more than just falling prices. Government incentives based on the U.S. Treasury Department’s 1603 program, due to be renewed this year, also give homeowners and businesses an incentive to go green with solar energy.
“Extension of this worthwhile program will allow taxpayers to reap the significant economic and energy policy benefits associated with the expanded deployment and use of solar energy,” SEIA writes.
“The 1603 program has helped leverage over $24 billion in private sector investment in for a wide range of clean energy projects, and extending the 1603 program will create an additional 37,000 jobs in the American solar industry in this year alone,” President and CEO Rhone Resch states.
About the author:
This Guest post is by Christine Kane from internet service providers, she is a graduate of Communication and Journalism. She enjoys writing about a wide-variety of subjects for different blogs. She can be reached via email at: Christi.Kane00@gmail.com.