Propelled by the positive public policy of the states, American solar power industry surged in 2008 though demand for some solar installations cooled down.
The preliminary report released by the Solar Energy Industries Association on March 19, 2009 noted that there was 17% increase in the US solar energy capacity in 2008, as reported by the New York Times.
According to the report, among the four kinds of solar power plants surveyed, it was found that the photovoltaic capacity posted strong growth at 44% during 2008 against the aggregate installed capacity in 2007. Also, the solar capacity reached 8,775 Megawatts in 2008, an increase of 9% or 1,265 Megawatts from 2007. Solar panel capacity also grew 78% in 2008 over 2007, with 50% increase in the installations of solar water heater.
The biggest impetus to the growth of US solar power sector has been provided by the positive public policy of some states in the country regarding solar power. For instance, the California Public Utility Commission (PUC) is consistently working to enable the state to address its energy requirements in the coming times, and increasing use of solar energy is a part of this vision.
Moreover, as businesses and individual consumers are witnessing higher energy prices and environmental issues, solar energy appears to be an effective alternative for power generation. Use of solar power will drastically reduce the harmful effects of power generation from traditional resources i.e. fossil fuels, natural gas and nuclear energy.
However, several companies have highlighted that despite keen interest being displayed by consumers in solar devices, worries relating to personal finances and credit crunch have slowed down the sales growth. This is due to the fact that power generation from photovoltaic panels could be three folds expensive than wind.
But the country’s stimulus law allows the government to guarantee loans to the renewable energy projects including solar energy. Especially, solar energy sector is hoping that this provision should be implemented because solar products are one of the costliest forms of renewable energy.
According to a Research Analyst at RNCOS, “The US solar energy sector grew positively in 2008; however, sales of solar installations have slumped due to recession. But the recently passed stimulus package will guarantee that solar products buyers receive financial assistance for the installation of solar equipments. Lawmakers should also set up a renewable energy portfolio requiring power providers to produce a certain quantity of electricity from the renewable sources.”
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