The worldwide economic recession has put a damper on solar panel production and sales, most notably in China and parts of Europe. But in California, where local, regional and state tax incentives continue to drive solar power sales, many solar panel manufacturers and installers are finding the financial climate positively sunny.
Up to now, solar system costs – which can range from $20,000 to $50,000 for a fully solar-powered home, and take 15 years to recoup – have kept California solar at a measly one percent of generation.
Optimism over solar’s future prompted a flood of U.S. startups and venture capital funding in 2006 and 2007. Then came the economic downturn, with a few of those solar startups going bottom’s up. The remainder – the courageous or merely foolhardy – see the downturn as an incentive to drive down solar costs and capture at least a part of that other 99 percent of electricity generation. And even though many solar panel manufacturing companies have seen almost half their value surrendered to the current recession, a few hardy souls, including those who manufacture on the periphery of solar energy, see instead continuing interest.
A prime example would be Blue Sky Energy, Inc., which makes charge controllers that regulate the flow of electricity from solar panels into batteries, where it is stored overnight for use in traffic signals, parking lots and other lighting venues not connected to electrical grids. In spite of worldwide economic woes, Blue Sky’s annual revenue continues to grow by 10 to 15 percent a year, according to co-owner Melanie Cullen.
California manufacturers and installers are also seeing a burst of activity as tax credits, which took effect the first of the year, encourage “greenies” to install solar. For the average homeowner, says Kelly Barber, marketing manager for Natural Energy USA Inc. in Escondido (mentioned on Cooler Planet’s provider page), state rebates will cover $3,800 worth of costs, while the 30 percent federal tax credit can reduce the cost to about $11,000 (compared to the former $14,000 before the government dropped the cap of $2,000 per system).
The main factor that will drive down solar panel costs appears to be the worldwide glut of panels, which are time-consuming to manufacture and require expensive and somewhat rare raw materials.
This over-abundance, mainly in Europe, will help drive down U.S. solar panel costs. And the brief hiatus in manufacturing may also allow solar panel companies the time they need to investigate cheaper and more effective solar panel materials. In any case, expect 2009 to see a renewal in solar electric
Cooler Planet is a leading solar resource for connecting consumers and commercial entities with local solar Installers. Cooler Planet’s solar energy resource page contains articles and tools such as our solar calculator to help with your solar project.