10% of U.S. Electricity From Solar by 2025
Solar energy currently generates .1% of the electricity used in the U.S. According to a study released today, this will change rapidly as the cost of electricity increases and the cost of solar energy drops.
The Utility Solar Assessment Study produced by Clean Edge and Co-op America finds that solar energy is already reaching cost parity with conventional sources in some areas of the U.S. where electric rates are highest. By 2015, this will be achieved in many more areas, including Boston, San Diego, and New York. By 2025, cost parity will be achieved throughout the U.S.
The implications of this are huge. The U.S. solar photovoltaic market now relies heavily on state incentives to lower the cost of solar energy. Many people utilize solar energy because it is “the right thing to do” or businesses like the positive publicity solar brings.
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Unique Advantages of Solar Electricity
Solar energy does not have fuel costs, like power generated from coal, natural gas, oil, or nuclear energy. The maintenance costs of solar are relatively low , it can generate electricity at the point of use, and emits no carbon. Solar is ideally suited to produce peak electricity, when demand is highest on the power grid and utility companies pay the highest rates. This is also where there is the greatest growth in electricity demand.
“The daily and seasonal variation in grid load in the United States matches solar availability,” said John O’Donnell, executive vice president of Ausra. Solar effectively generates electricity when the rates and demand are the highest.
Action is Needed to Advance Widespread Use of Solar Energy
Solar Companies
Large-scale use of solar energy depends on prices dropping to $3 per peak watt of electricity by 2018, according to the study. This involves quickly implementing advanced technologies in a cost-effective manner. Solar technology needs to be easier to install, thus reducing installation costs and other installations barriers.
Utility Companies
Utilities have become more and more interested in solar energy. California is a great example, where many utilities have signed purchase agreements for solar plant output. The U.S. will also need trained workers, which is another opportunity for utilities to take the lead.
A large investment in solar energy is needed for 10% of U.S. electricity to be generated by solar energy by 2025. Utilities will need to invest between $26 and $33 billion per year, a pretty hefty sum. To put this number in perspective, utilities invested $70 billion in 2007 on new power plants and transmission and distribution centers.
Solar Regulation and Policy
There is currently a 30% commercial tax credit for solar energy, but it is set to expire at the end of the year. There are purchase agreements for 3.2 gigawatts of concentrated solar power during 2007, but these solar power plants cannot be constructed before the tax credit expires. A long-term extension of the renewable energy tax credit is needed for large-scale use of solar energy. Many states also have renewable portfolio standards, but a national renewable portfolio standard would also help strengthen the industry.
>> Calculate your home’s solar potential with the Renewzle residential solar power calculator.
Related Posts on Solar Energy
Solar Thermal Electricity: Can it Replace Coal, Gas, and Oil?
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Solar Panels and the Quest for $1/Watt
Clean Energy Intro: Solar Businesses
4 Things to Consider Before Going Solar
Photo Credit: Solar Service Inc of Illinois
Sarah:
Thanks for bringing the Solar Industry to light in your article above. Solar Systems are much more affordable now and your readers can learn about all of the state and utility company rebates and incentives for Solar Panels and Solar Systems on my website http://www.mehrsolar.com/lonestar.
Another great website for solar incentives in the US is http://www.dsireusa.org
The energy generating potential of solar power can be greatly increased using Concentrator Photovoltaic (CPV) systems. In the past these systems have required too much space to be really feasible in a widespread setting. But a new design has been developed that is much more efficient. Read the article, here at http://www.brightfuture.us.
Check out these US Carbon Footprint stats, an interactive United States Carbon Footprint table, illustrating Greenest States to Cities. This site has all sorts of stats on individual State & City energy consumptions, demographics and much more down to your local US City level…
http://www.eredux.com/states/
Zippy-you may be an Electrical Engineer by trade - but unfortunately you’re not very up with latest Grid Supply technology. High Voltage DC power lines can cover large distances with minimal losses. 3% per 1000km. These are available from Swiss/Swedish industrial Giant ABB.
See http://en.wikipedia.org/wiki/HVDC
In other words, you can send Wind from Canada and the south of the USA into load centres with minimal loss.
You can send Solar from Arizona, California, Texas, Florida and Nevada all over continental United States.
Matthew:
How many HVDC lines are in operation in the continental United States? How much does it cost to build HVDC per mile?
The Wikipedia article that you pointed to offered a hint - a 40 km 8 GW line under the English Channel is estimated to have cost $2 billion (a billion UK pounds).
The article also mentions that HVDC is not appropriate for distributed sources that need a lot of taps into the line - it is best used when there is a very large power source that is a long way from a distant load center. That does not sound like it would work well for solar until such time as there are GW sized arrays. Today, the largest arrays in the world are at least one order of magnitude smaller than that.
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