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Here it is, mid summer 2010, and the solar industry is experiencing continued growing pains. This comes with little surprise. In the last decade the practice of generating electricity from the sun has been gaining popularity at a rapid pace. There are many factors contributing to this growth: increased awareness of environmental issues, rising utility costs, the desire to regain some personal control, etc. My experience has shown that the vast majority of consumers who incorporate solar power in their homes and businesses are concerned with all of these things. I’ve come across very few who are only concerned with the environment, or just the cost savings. Generally speaking, the solar world will continue its upward popularity because it appeals to most of us who look for multiple benefits in our endeavors. In order to look ahead, let’s first take a quick look back just a few years to see our progress so far.
Solar power has been around for a long time. Its widespread use however, has only been going on for the past 5-10 years. There are two main reasons for this delay in popularity in the U.S.; cheap utility rates and lack of public awareness toward our environment. Unfortunately human beings seem to resist change. Therefore, until the negative impact reaches enough of the population, little is done. We are now at a time where a shift in direction is needed and is taking place. You may disagree with some specifics, but generally speaking as a group, we are improving our collective consciousness. To date, the European Nations have by far been the largest users of solar products. Here in the U.S. and more specifically in California, we are picking up speed. As recently as 2008, solar modules were being gobbled up in Europe leaving very little products for the U.S. market.
Then in 2009 a combination of the manufacturing industry drastically increasing production capabilities and the overseas market slowing, component cost began falling dramatically. For the last 12-18 months manufacturers have been dumping their products in the U.S. This along with Federal Tax Credits and many public rebate programs has caused a reduction in solar costs at the consumer level to be half of what they were three years ago. If you find yourself in the market for solar, act now! Why the urgency? Overseas markets are ramping up again. Now even more countries are getting serious with this form of alternative energy. Along with many European nations our neighbor to the north, Canada, has had great success recently and shows no signs of
slowing down. Major component manufacturers are running at 100% capacity and having difficulty keeping up with demand. With the U.S. incentive programs not matching those in other countries, the highest demand for products is now, once again, elsewhere. This is now beginning to cause products shortages here. The age old rule of supply and demand will begin to show cost increases in the U.S. in the near future.
Look for product costs to gradually increase through the balance of 2010 and into 2011. For the long term thinker, solar is going to remain a very good decision, therefore, a moderate demand for products here in the U.S. will continue. When the U.S. finally adopts better incentives for the private sector to use these products, I believe we will see a shift in the supply and demand issues. Over the next 6-18 months it will be a rollercoaster ride with product availability and costs. The bottom line? Short term, products will be a little harder to come by and may cost a little more. But, you will have a tough time finding anyone who thinks their utility costs will not rise, and our environment still needs a lot of help. Long term, alternative energy is here to stay. Solar energy, that is to say the sun, is the most available source we have. The U.S. is slow to arrive to this party, but when we finally do, I believe collectively we will make a huge splash. |
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