Boston-based Konarka Technologies solar know-how works to energize such things as cell phones and laptops. Its research, which is also getting funds from the administration, uses flexible and lightweight plastic cell strips -- technology that would subsequently become part of the mainstream. The enterprise has thus far received $10 million from the U.S. government along with $60 million in venture capital from such giants as Chevron Corp.

"Because of its potential to deliver very low cost solutions to the existing grid-tied markets, the DOE considers organic photovoltaics to be a vital element of our research and development portfolio," says Craig Cornelius, technology manager of the U.S. Department of Energy's solar program. "With its manufacturability, high volume potential and desired material attributes, (Konarka) can open up new applications."

Solar energy is clean, abundant and widespread. It can be used to increase electricity generating capacity while decreasing greenhouse gas emissions as compared to other energy conversion pathways.

Photovoltaic-based solar cells convert sunlight directly into electricity. They are made of semiconductor materials similar to those used in computer chips. When sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. The process of converting light to electricity is called the photovoltaic effect.

The market for photovoltaic modules is expected to be $1.3 billion by 2010, according to Cleveland-based Freedonia Group. The marketing research group says that the demand for solar power will increase because of cheaper solar technologies as well as more tax incentives and rebates provided at the federal and state levels. It also says that "net metering," which allows consumers to sell their excess energy produced by their solar equipment back to utilities, is having an effect.

Public Endorsement

Households now receive tax credits that reduce overall solar installation costs by 30 percent through 2008, although those in the industry say that the recent one-year extension just granted is inadequate. Instead, the Solar Energy Industries Association is placing its bets on the Democratically-controlled 110th Congress to lengthen those breaks another eight years. Without that, the credits are set to drop to 10 percent for both businesses and households that install solar equipment at the end of the year.

"The 110th Congress should look to the (Bush administration's) Solar America Initiative as an example of a long-term policy that will help grow the marketplace for solar energy technologies," says solar association president Rhone Resch. "This (proposed) legislation will put solar on the path to become the lowest-cost retail electricity source by 2015 and improve America's competitiveness in the global race for solar power market leadership."

Renewable energy provides less than two percent of the nation's generation mix. Solar provides a mere fraction of that. But, through public-private partnerships, the administration hopes to give solar a nudge.

Solar costs about 25 cents a kilowatt hour. That's compared to about 9 cents a kilowatt hour for natural gas and 5 cents a kilowatt hour for modern coal-burning plants, as well as 5 cents a kilowatt hour for wind energy. The good news is that solar power used to cost $1 a kilowatt hour. The hope is that the new market dynamics will bring down the price of such power to around 6 cents a kilowatt hour in the next decade.

Besides the current cost, the solar power industry is challenged by when, where and how often the sun shines. The American Southwest, for example, has twice the production potential of the Northeast, but that's where more people are located. Moreover, the sun only shines about 30 percent of the time even in the brightest locations, after factoring in darkness, dawn, dusk and clouds. That makes it difficult currently to cover the cost of paying off a capital-intensive technology.

The public endorses government-led research efforts and state and federal tax policies reflect that support. Solar power plants have almost no carbon dioxide, sulfur dioxide or nitrogen oxide emissions tied to them. They usually produce power during peak demand when it is most needed, displacing coal-and-natural-gas fired units in the process.

San Jose-based SunPower and PowerLight are two other companies that will receive $10.5 million from the administration's solar initiative. They aim to increase production efficiencies associated with such solar technology as wafers, solar cells and panels. In addition, the two companies will work to reduce solar system costs through improvements in the design and manufacture of integrated photovoltaic systems.

"Solar technology will be advanced most effectively by teams that cross the value chain, from solar cell manufacturing to turnkey project implementation," says Tom Dinwoodie, CEO of PowerLight.