The solar power industry in the United States will still continue to get support from the government even after the debacle with Solyndra. Favorable government measures would still make solar power cost-competitive with other energy sources.
The increase in solar panel production will result to the decrease in panel costs through 2016. This would drive the growth of the solar power industry as its main input drops. If the trend continues, revenue is estimated to increase at an average yearly rate of 11.4 percent and a total of $145.9 million through 2016.
Analysts expect the economy to strengthen within the next few years as consumer income grows and businesses invest more. As long as the trends continue, electricity growth will follow along. The demand for solar power will increase as electricity demand goes up. Green electricity would be required by companies in the United States.
There are still worries among companies in the solar power industry even if there are favorable government subsidies in place at present for the next five years. However legislations after the 2012 election would depend on the composition of Congress and who the president would be.
Government subsidies helped the solar power industry over the last five years to 2011. The federal government provided tax credits for investments made in solar power and enacted renewable portfolio standards, which required local utilities to get a portion of their electricity from renewable sources. This increased public interest in green technology.
Because of federal and local government regulations, the number of solar power projects in the United States increased, which benefitted companies such as NextEra Energy, Abengoa Solar and MEMC Electronic Materials.
The subsidies in form of RPS and federal tax credits have led to the raise of solar electricity generation. Plus, Chinese solar panel and module manufacturers flooded the market with cheap products, which gave companies who undertook projects higher profit margins.
In recent solar power news, NRG Energy acquired Solar Power Partners, which is a San Francisco-based solar energy company. It is its way to penetrate the small solar energy projects market. The price of the acquisition was not disclosed by both companies. The deal included Solar Power Partners’ 30 megawatts of solar projects in operation or under construction as well as the development rights to its projects in seven states, Canada and Puerto Rico. Solar Power Partners installed solar systems on grocery stores, universities, hospitals, office buildings, schools, municipal buildings, and airports.
I’m seeing similar news like this all over the Internet. I was just reading an article about GE, who has announced a goal to reduce costs to $3/watt by the year 2015. We all need to work together to make this happen.
This is good news that the industry is growing in a global depression
Its great to see an article like this and i am glad the government wish to support making solar power profitable – Although i disagree with people who simply have solar panels installed simply as an investment rather than other benefits including the effect of the environment.
Great post and I look forward to future posts.