U.S. report outlines four key policies for boosting solar use

U.S. report outlines four key policies for boosting solar use

WASHINGTON, DC, US, 24 March 2008:

Four policies are central to ensuring the wide-scale deployment of solar energy in the United States, according to a report from the Center for American Progress.

Financial incentives for solar power must be sustained over 5 to 10 years at a declining rate, to ensure market stability and cost reductions, and to build a state-based industry by stimulating customer investment, explains the group in ‘Developing State Solar Photovoltaic Markets: Riding the Wave to Clean Energy Independence.' The report is authored by JP Ross of the Vote Solar Initiative, and lays out the key components of each policy.

Solar PV customers must be able to connect to the utility grid without undue delay and expense, it adds. If the process is lengthy or difficult, it will dissuade many consumers.

Net metering ensures that consumers are equipped with PV systems that meet their energy needs while crediting customers for all the energy they generate, and the four component is that utilities must charge consumers fairly for the electricity they consume and make the same rate choices available to solar customers that are available to other customers.

“Solar photovoltaic energy is an established technology that has proven its ability to improve our national security and boost the economy,” it explains. PV energy is both domestic and emission-free, “making it key to weaning the United States of our dependence on polluting fossil fuels and helping to curb the effects of global warming.”

“Solar PV also bolsters our economic security by creating more new jobs than any other energy technology,” and the report notes that the federal government has shown support for solar energy in recent years with the passage of the Energy Policy Act of 2005 (which provides tax credits for investors in solar power systems) while the Securing Energy Independence Act of 2007 would extend the tax credits through the end of 2016, “a necessary step for a rapid transition to solar energy.”

“Yet federal action is not enough; energy policy is largely determined at the state level through state and local laws and utility regulation,” it continues. “States must therefore take the lead to ensure that incentives are properly structured to keeps costs declining while regulatory processes become more easily navigable by businesses and consumers. Solar photovoltaics must rival power from the utility grid in both cost and accessibility in order to make solar power appealing to consumers.”

The report highlights model policies and case studies of four states that have developed the market for solar PV, and the models provide guidance to states which want to boost their economies by developing a strong solar industry and show that stronger energy independence through solar power is achievable for every state.

“These successes will provide essential lessons in shaping a bold national solar policy,” it adds. “Solar energy can play a central role in improving our energy independence and making the transition to a renewable energy economy. The sooner we begin, the sooner we can reap the benefits.”

The cost of solar PV has declined sharply over recent years as the technology has matured and manufacturing volumes in the solar industry have grown. Every time production has doubled, manufacturing costs have fallen by 20%.

The solar industry had gross global revenue of $19 billion in 2006 and is projected to grow to $70 billion in 2010. “This growth means new jobs, a stronger economy, and increased energy independence for states that establish the right market conditions to ride this wave. Many states are already taking action to create conditions that will allow solar energy projects to flourish.”