SUN LOOKS BRIGHT

Residential solar in 2011, US consumers poised to capitalize; Among other factors, adverse conditions in global solar panel markets make solar energy’s future bright.
Justin Molavi (W/Josh McBee), February 2011 (IBIS World)

"…[T]he future of sustainable energy in the United States…[is] solar power…[T]he future of solar power…[depends on] the prices for solar panels…[T]he future of solar panels…[is in] China.

"…[M]ost solar manufacturing capacity…[is] in China…[because] low-cost labor allows companies to produce cheaper products…[and there are] lucrative partnerships with governments…[and] favorable loans from state-run banks…China’s share of the US solar panel market [was] 23 percent in 2010, with that number projected to continue rising…[The U.S.] Solar Power Generation industry grew at an annual rate of 6.9% in the five years to 2010…"

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"…Chinese solar manufacturing companies have yet to move surplus inventory created during the recession…in 2007 and 2008…As a result, low-cost panels are available, which in turn lowers the up front costs of solar power generation for customers. Panel prices have fallen from the high range of $3.50 to $5.00 a watt noted during 2008 to an expected $1.55 per watt in 2011…Decreased demand from solar power-generation firms in European countries will reduce industry revenue for solar panel manufacturers. In turn, these manufacturers will lower prices…

"…Solar markets outside of Europe (i.e. America) lack generous subsidies like FITs. As a result, relative slow growth in these other solar markets will also serve to lower panel prices…[and the] US government’s 30% federal tax program…[favor] concentrating solar power (CSP)…which will also lower the cost of solar panels by shifting demand…"

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"…[T]he higher electricity prices climb, the more likely consumers will be to turn to solar. Consequently, forecasting the likelihood of consumers’ solar adoption requires projecting the price of electricity…[H]igh disposable income could be seen as a harbinger of increased demand, which will consequently increase traditional electricity costs…

"The bottom line for people looking to power their homes via solar is this: Power companies profit at the expense of consumers who lack either the wherewithal or capital (or both) to find alternative sources of energy…Sunshine, on the other hand, is free. Increased market acceptance of solar combined with changing attitudes about sustainable living have spurred industry growth…[C]urrent conditions in solar panel production overseas and projections for electricity prices, the future for solar use in America looks bright indeed."