A Solar Awakening

The manufacturing sector in Asia has lowered the cost of solar panels by 50% since 2011. Streamlined for efficiency, Photo Voltaic manufacturers have saved, indeed propelled the industry  of deploying these systems in the United States. Rebates and government incentives also contributed to this growth. The substantial monetary aid from the American Reinvestment and Recovery Act, issued by President Barrack Obama, will expire at the end of 2014. This year, the amount of aid in renewables is about one third the level in 2009. Does this impose risks to this emerging industry?

Credit: Beyond Boom and Bust, The Breakthrough Institute

Yes, there are some risks associated with the federal cushion growing firmer, however, the aid has done amazing things for the industry already. Such as, driving down prices of PV modules. Indeed, some of this price reduction has come from the dumping of panels from manufacturers who overestimated demand, especially in light of decreasing demand in Germany and Italy. However, it has set a new standard, and as the deployment sector in America continues to grow, PV prices will continue to fall. Because fossil-based energies will continue to become more scarce, expensive, and politically risky (think, the Gulf disaster ...), there will be a meeting point for consumers where the payoff between the two are equal. And, if considered over a 20 year period, solar power will be the clear choice of the future.