Solar Energy Can Provide 4.2% of U.S. Power by 2020

November 1st, 2010 by Zachary Shahan

If you keep up with solar energy news and energy news, in general, 4.2% of U.S. electricity coming from solar energy by 2020 probably sounds like a good estimate. According to a new report from Bloomberg New Energy Finance, that is exactly what the U.S. could reach due to continuously decreasing solar costs and continuous investment in this energy sector.

Investments in solar are expected to hit $100 billion over the next decade and the report predicts that with this amount of investment solar capacity could go from the 1,400 megawatts it’s at today to 44,000 megawatts by 2020.

“There is a very positive growth story for solar in the U.S.,” Michael Liebreich, chief executive officer of New Energy Finance for Bloomberg, said. “A few more years of support, and then the engine of unsubsidized competitiveness will take over.”

As I wrote just a few weeks ago, the Solar Energy Industry Association (SEIA) is also predicting significant, continuous growth over the next several years. It is the fastest-growing energy industry in the U.S. and there is no reason to believe that growth would slow down.

Solar costs have been dropping for over a decade and one report a few months ago found that we have passed a historic crossover where solar costs have met and dropped below rising nuclear energy costs. That trend of solar becoming much more competitive with other, traditional energy sources is expected to continue as its costs continue to fall while dirty energy costs continue to rise.

In the meantime, combined with dropping costs and due to the long-term vision of some of our country’s leaders, solar incentives are helping solar to grow at a great pace.

Regarding solar growth up to today, Reed Landberg of Bloomberg writes:

A drop in costs for both solar thermal technology and solar photovoltaic panels to less than $200 a megawatt-hour has helped increase returns on investments. Commercial rooftop solar systems generate returns of 8 percent to 14 percent in some states and more in states with strong incentives such as Hawaii, Texas, New Jersey and Massachusetts.

The Sun is always there. Looks like we are finally realizing that we can tap into it more than we have been and are finding better and better ways to do so.

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Photo Credit: premasagar via flickr (CC license)

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Tags: bloomberg, Solar Energy Growth, solar energy in the United States, solar power growth, solar power in the United States, US

About the Author

Zachary Shahan spends most of his time here on CleanTechnica as the director/chief editor. Otherwise, he's probably enthusiastically fulfilling his duties as the director/editor of Solar Love, EV Obsession, Planetsave, or Bikocity. Zach is recognized globally as a solar energy, electric car, and wind energy expert. If you would like him to speak at a related conference or event, connect with him via social media. You can connect with Zach on any popular social networking site you like. Links to all of his main social media profiles are on ZacharyShahan.com.

http://gomakesolarpanels.com/domestic-solar-electricity-systems/ domestic solar electricity

Only 4.2% in next 10 years. Sounds pretty low with all the money being spent on solar energy. Although its good to see the improvement in its usage, we still need to make better and smarter use of this source of energy that nature has given to us for free.
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dcarp

Our future energy needs will be met by a combination of sources, and solar will figure prominantly in the mix. However, until the cost is actually competitive with traditional sources (here in the midwest, coal fired plants rule), not many homeowners will use it. I ran a cost analysis the other day which showed a payback period of 25 years (including rebates) – the expected life of the system! How many more years will we have to wait for affordable technology?
Joseph M. Dukert, Ph.D.

When will energy writers learn the difference between “generating capacity” and “electricity output”? Even if solar generating capacity should reach the level suggested, the production of electricity from such installations would be a minor fraction of total national output — a welcome, but decidely modest contribution to U.S. requirements.
http://www.dimensionbuildlv.com remodeling

I see a slow down in government projects as well, with the Republicans taking back the house and definite budget cuts on the horizon, the only expansion your going to see is in the private sector.
Bill Woods

“[T]he Solar Energy Industry Association (SEIA) is also predicting significant, continuous growth over the next several years. It is the fastest-growing energy industry in the U.S. and there is no reason to believe that growth would slow down.”

This opinion is not universally shared:
‘“I think we’re going to see a burst of projects over the next two months and then you’re going to hear the sounds of silence for quite a while,” said David Crane, chief executive of NRG Energy, …’
‘“Good projects will still move forward, but just not as many,” said [BrightSource CEO John] Woolard.’
http://www.nytimes.com/2010/10/29/business/energy-environment/29solar.html?ref=business&pagewanted=all
Christf

“Due to the long-term vision of some of our country’s leaders, government incentives are helping solar to grow at a great pace” –> gotta wonder about how weakened this “long-term” vision is going to be with the classic short-term Tea Party folks poised to make big gains in Congress.