Development and Economics of Solar Energy

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As countries aim to be energy efficiency and less reliant on coal and oil, governments introduce grants and incentives for companies who wish to invest in solar power and other forms of renewable energy as well as for consumers who want to install alternative energy systems for eco-friendly buildings and homes. Since the transition to renewable energy systems seems inevitable due to commercial, environmental, political, and social reasons, the main concern is whether or not renewable energy is economically viable.

Outlook for solar energy development

Since the occurrence of oil and energy crises in the 1970’s, governments have taken much emphasis on reconsidering solar technology development which began in the 1860’s. Countries like Japan and the US came up with the Sunshine Program and Federal Photovoltaic Utilization Program, respectively. At a global scale, solar and photovoltaics development slowed down when the price of oil declined in the 1980’s. With the revival of green energy resulting from US President Obama’s energy policy, solar power is brought to popular attention once again. In Canada, the CANMET Energy Technology Centre and the Canadian Forest Service have developed maps for potential photovoltaic and solar resources by calculating the electric power that can be produced by photovoltaic panels that are not connected to rechargeable batteries and the electric grid. Canadian green energy organizations continue to do research on increasing the efficiency of solar technologies and photovoltaics, while aiming to gain public support through information campaigns and by offering grants and incentives.

Economic feasibility of solar energy

With grants and incentives programs offered by both the government and alternative energy companies, photovoltaic and solar technology production and installation has increased at an average of 40% since 2000. Green energy investors have found it to be cost-efficient to do free photovoltaic array installations in exchange for long-standing power purchase contracts. As with most types of commercial activities, more investors and companies generating solar power would make solar power less expensive for consumers. With ongoing research and development to make photovoltaic panels more efficient while lowering production costs, solar energy would be more commercially feasible.