Residential Solar Industry Growth

A recent white paper published by SunRun discusses residential solar industry growth and includes projections for the future of solar energy.

Over the past year, the number of people with jobs in the solar industry doubled to over 100,000 in 2010.  Further increase in solar jobs will continue into 2011, with a projected rise of an additional 26%.  In short, the solar industry is creating employment opportunities faster than the overall economy in the United States.  Residential solar demand is responsible in large part for the increase in the number of solar jobs.

With more homeowners installing solar panels, demand rises for both solar products and qualified installers.  In turn, the more solar industry jobs there are, the more people are available to serve the very consumers that are wishing to go solar.  Its a positive “vicious circle.”  As described in the SunRun white paper on residential solar industry growth:

“SunRun not only directly employs workers, but also partners with 25 installation companies across the country, that in turn employ 3,000 green collar workers. The more homes that install solar, the more installation crews are needed, and the more tools and inventory are required. One local job is created for every six homes that go solar. The impact of residential solar extends from the panel manufacturer to the auto repair shop that services the installation trucks, to the local coffee house that keeps the installers on their toes.

When a homeowner installs a solar system on their home, they automatically invest in green jobs and clean energy companies, ranging from those researching new solar technologies to installing panels in their neighborhood. A Navigent Consulting study found that for every six homes that go solar, one local green job is created.”

To learn more about projected residential solar industry growth, read Residential Solar Jobs Will Fuel the Future.

Home solar panels on the rise in 2009

If you’re thinking about switching to solar energy, this may be your year!  The Solar Energy Industries Association (SEIA) issued a report recently that shows the home solar market doubled in 2009.  Projections for 2010 indicate that residential solar panels will continue to sell at a rapid pace, stating that this year will be a “banner year for solar growth in the U.S.”

Overall, the home solar sector comprised most of the 37% solar industry growth last year.  As encouraging is the fact that the solar market growth will continue to lead to new green solar jobs.  So far, the industry already supports nearly 50,000 jobs in the U.S., and the number is expected to increase by 20% this year.

Sunshine encouraging growth

There are so many reasons to go solar – whether for Earth Day, to save on electricity costs, or to encourage growth of the national economy.  The residential solar power market is showing signs of a bright future.  Don’t you think?

How green are your solar panels?

You want to live green, so you consider installing solar panels on your home or business to minimize use of fossil-fuel based electricity.  But just how green is that energy source, anyway?  Is clean solar energy a myth?

Solar panel toxicity is considered by many to be solar’s dirty little secret.  While power from the sun itself is free, renewable and green, the equipment necessary to capture and convert solar energy into usable electricity may have a carbon footprint a bit larger than you would imagine.

Generally speaking, while solar panel manufacturing involves use of some fossil fuels, many believe that the cost-benefit analysis weighs in favor of going solar rather than sticking with grid-based electricity.  Still, you could find a “greener” solar panel, depending from which manufacturer you purchase solar panels.

Not all solar panels are created equal

The Silicon Valley Toxics Coalition conducted a recent survey, comparing environmental health and safety practices, recycling policies, and sustainability among 14 major solar panel manufacturers that represent about 1/4 of the global solar module market share.  Its report indicates that German companies scored the highest overall: Calyxo, SolarWorld and Sovello garnered top scores.  Yingli, based in China, came in fourth place.  U.S.-based First Solar and Abound Solar, (the only two American companies to respond) followed.

Specific, eye-opening findings include:

• Half the companies surveyed supported mandatory take-back and recycling at the end of the solar panels’ life, yet many need to start setting aside money for such programs
• About 2/3 of the companies surveyed fail to perform life-cycle analysis on their products
• The risk of chemicals used during solar panel manufacturing is not assessed by the majority of responding manufacturers
• There was no response from several major manufacturers (and thus no information to compare), including Sharp, Miasolé, Best Solar and Solyndra.

While more information and analysis is needed to provide both the industry and the public with necessary information on minimization of solar panel toxicity, the survey is perhaps a good start.  With the increase in solar energy as a renewable resource, questions are already arising as to proper disposal or recycling of the panels at the end of their 20-40 year life-cycle.

Let’s keep the discussion going and get a few more manufacturers to disclose information and work to improve practices.  You can help by asking questions before purchasing or installing solar panels.  Be a wise consumer; the solar industry will rise to meet the standards we demand.

How Clean is Solar Energy?

Many of us hold out hope for solar power to be a renewable energy resource to save us from polluting coal and other fossil fuels in the future.  Yet, some lingering questions remain:  how clean is solar energy?

Solar PV panels look sleek and futuristic.  But are they truly as green and eco-friendly as they purport to be?

Many skeptics point out that solar modules are comprised of a number of toxic chemicals: arsenic, cadmium telluride, hexafluoroethane, lead, and polyvinyl fluoride, to name a few.

Should you be concerned?  Is it time to give up on solar and settle for cheap, coal?

I’d say the answer is a resounding “NO!”

In truth, toxic solar panels may be more hype than reality.  During the manufacturing process, solar modules are encased in glass, which prevent leeching of chemicals and other toxins.  However, as the Silicon Valley Toxics Coalition pointed out in a 2009 report, issues arise during the beginning and at the end of a solar panel’s life-span.  When solar panels are manufactured, some employees can be put at risk; at the end of their life, disposal raises new questions.

How green are solar panels?

In short, even though the solar industry faces some potential criticism for using toxic materials in manufacturing, solar companies are considerably more “green” than the electronics industry was when it first took hold in the 1970s and 80s.

Does that mean that they are walking the eco-friendly talk?

Perhaps.  Particularly when companies in the solar PV industry adopt and implement sustainable policies like the recycling programs of First Solar, and the use of organic materials by Heliatek.  Add into the mix corporations like BioSolar, which substitutes environmentally friendly materials (bioplastic) for toxic ingredients.

Observed the CEO of BioSolar, David Lee:

“The solar industry will have some of the same problems the electronics industry had unless we plan now.  The solar industry involves a lot of toxic chemicals and we have to look at the lifecycle of these materials, from mining to manufacturing.”

In fact, bioplastics are significantly changing the solar industry.  Not only are they biodegradable, but they can also withstand high temperatures associated with PV panel operation, while staying dry and water-tight.  Bioplastics are used for solar panel backsheets and eventually also to replace chemical-based substrates that form solar cells.

While “greening” the environment, these cleaner solar panels can also help a solar manufacturer’s bottom line.  Bioplastic solar cell components will eventually be produced for 1/2 the cost of toxic chemical-based solarp panels.

An all-around green solar panel?  Clean solar energy just became brilliant!

Looking up for the top solar industry stories in 2009

Oh yes!  Its time for the ubiquitous “top 10″ lists at the end of the year.  Add to that, the fact that its also the end of the decade, and… well… time to roll up your sleeves.

When it comes to the solar industry, a single month may be the equivalent of a year.  In other words, looking back over the course of a decade, so much has happened that we couldn’t begin to summarize it all in a single post.

In fact, 2009 was a really big year which is deserving of an entire post devoted to the top 10 solar trends over the past 12 months.

So, without further ado, here are our picks for top solar stories this year:

1. Prices and Production of PV Panels Slashed: Despite news of the impact of global climate change and enactment of numerous government incentives to encourage solar energy, solar manufacturers found themselves in the position of dealing with reduced market demand for PV panels, due to the recession.  As a result, prices were cut by much as 50% and companies looked to renegotiate contracts to retain their footing.  This, in turn, sparked a price war between German and Chinese solar manufacturers, including allegations that Chinese companies were selling at below production costs.

2. Solar Companies Revise Business Plans: In addition to slowing production and cutting costs, some solar companies revised business plans in 2009, moving from manufacturing to licensing technology, or even selling factory equipment to rival solar cell makers.  Innovalight and 1366 Technologies were among several start-up solar manufacturers that found themselves looking for new ways to make money in the business last year.

3. Solar Outsourcing: As the market shifts to a broader consumer base and solar panels become commodity goods, solar manufacturers have started outsourcing some of the production work, instead of owning factories in which all components are constructed and assembled.  This past year, BP Solar, SunPower and Evergreen Solar, started hiring contract manufacturers.

4. U.S. Federal Stimulus Dollars: In February, the Obama Administration pushed through a stimulus package with the potential of billions of dollars to be awarded to renewable energy development, including solar.  Some of the benefits flowed directly to consumers who installed solar panels on their properties.  Solar manufacturers, however, generally are still waiting for the windfall.  Although many have applied for loan guarantees and grant monies, only Solyndra in California has been awarded stimulus funds…. so far.

Lots of changes in the solar industry in 2009

5. Germany Continues to Shine Brightly with Solar: Once again, Germany led the rest of the world with respect to solar installations and overall solar capacity.  Although the country has been a solar leader for years, this year it exceeded expectations, despite the global recession. Go Germany!

6. Solar Project Development: In addition to manufacturing PV solar cells, some companies started getting into the solar project development business.  In other words, permitting, constructing and operating utility scale solar power fields.  Not only does this allow them the opportunity to install their own solar panels (creating valuable demand), but they also profit by selling solar electricity to utilities.

First Solar, SunPower, Q-Cells, Solon, LDK Solar, Suntech Power and MEMC Electronic Materials all engaged in solar project development in 2009.

7. Building Integrated Photovoltaics: In 2009, the concept of building integrated photovoltaics (BIPV) really started taking hold.  Solar roof shingles and other uses of thin-film solar on the sides of buildings intrigued property owners with ease of application, positive aesthetics and lower cost than traditional PV panels. Looking ahead to next year, market analysts are expecting Dow Chemical and Johns Manville to lead the way with the sale of solar shingles and other flexible thin film solar products.

Solar power in China

8. The Sun Rises in the East: Solar power has been on the rise in both China and India, catching the wave of opportunity created by the solar industry.  In China, the government started offering incentives for the installation of solar panels, in order to boost demand for its own solar manufacturers.  India, too, is encouraging a switch to solar electricity with its goal to be generating 20 gigawatts (equivalent to 20,000 kilowatts) of solar power annually by 2020.

9. Utilities Are Getting into the Solar Business: Not only are solar manufacturers looking to own and operate utility scale solar plants, but utilities themselves obviously agree that solar is a good investment.  Particularly when the U.S. government offers a 30% investment tax credit for owning a solar power plant.

This year, major utilities that are looking to benefit from the tax incentive include Pacific Gas and Electric, Duke Energy, Southern California Edison and Florida Power & Light.

10. Residential Solar Financing Options: This year, a number of options for consumers to finance solar panels arose.  Some local governments have started allowing residents pay for solar panels through their property tax bills (known as property assessed clean energy, or PACE).  Another option that is growing in popularity is leasing solar panels.  Any arrangement by which the consumer can start reaping the benefits of free, clean solar energy without the upfront costs is highly sought after as people consider high energy costs and guarding against future electricity rate increases.

2010 is going to be a big year for the solar industry!  We are looking forward to reporting on new exciting stories as they arise.  Wishing you a sunny and bright New Year!

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