SUN’S 2009

Solar Growth Slows, With Homes a Glaring Exception
Kate Galbraith, April 15, 2010 (NY Times)

"…[US Solar Industry; Year in Review 2009 found that the pace of solar installations slowed last year amid the economic downturn.

"Total capacity installed for all types of solar energy grew by 5.2 percent in 2009, compared with 9.6 percent the previous year. But Rhone Resch, the chief executive of the Solar Energy Industries Association [SEIA], which released the report…[said] the residential market for photovoltaic panels (the type used on rooftops) grew at its fastest pace ever in 2009, and utilities’ demand for these panels also stayed strong…"

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"…[T]he large commercial market — companies putting solar panels on their rooftops — lagged. As a result, overall growth in capacity for photovoltaic panels stood at 38 percent last year, down significantly from 84 percent growth a year earlier…Demand for solar pool heating equipment fell last year…hit hardest by the recession…[U]nlike other types of solar energy, pool heating does not benefit from federal tax incentives.

"On a worldwide scale, the United States ranked fourth in solar-electric installations last year…after Germany, Italy and Japan. In overall capacity, the United States is also fourth, behind Germany, Spain and Japan. Solar power accounts for less than 1 percent of the electricity supply in the United States."

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"The solar industry has undergone significant changes in the past few years. The price of photovoltaic panels has fallen by over 40 percent since mid-2008, due to a combination of factors such as reduced demand in Spain and increased supply of the polysilicon material used to make the panels. However, homeowners have not reaped the full rewards of that price drop: the cost of panels and installation together fell by only 10 percent…[because] labor still accounts for a hefty part of the overall bill.

"The industry has also benefited from substantial new federal incentives…States have also helped. California is by far the leading state…followed by New Jersey…[and Florida] came in third…The industry is still hoping that Congress will approve further policies to aid solar. On its wish list is a national renewable electricity requirement, with special requirements for solar power…"