Solar Energy Costs and Economic Impact

View of Solar Panel
View of Solar Panel | Image by Flickr

According to a global price survey, solar energy prices have declined on average by 4% per year over the last 10 to 15 years. There is a gradual increase in the yields of the cells, and the production scale are the underlying causes of this decrease. The Global Solar Buzz Price research clearly indicates that prices have fallen steadily for the past two years. A detailed analysis of the global photovoltaic market is present in the leading reports, the Market Buzz 2009. A residential solar energy system typically costs about $ 8-10 per watt in 2009. The government incentive programs exist, and in combination with lower prices secured through volume purchases can install cost for solar modules as low as $ 3-4 watts are – or 10-12 cents per kilowatt-hour can be achieved. Without incentive program, solar power costs between 22-40 cents / kWh for very large PV systems.

Another system used for large power plants is concentrating solar power (CSP) technology, is a large array of mirrors or lenses that aim to either produce heat, or focusing on PV systems. These are built at a cost of $ 2- $ 4 per watt. Some estimate that these types of solar panels 25% of the energy needs of the world can produce in 2050 is anticipated that the cost of CSP can be as low as 6-7 cents per kWh as low as conventional energy. The CSP industry is growing rapidly in Spain and the United States, and the SEPA is tracking more than 5,000 MW of new project announcements which are scheduled for development until 2015. Not all of them will be built; permitting, financing, technology and other factors must first fall into place, but the industry is poised for rapid growth, regardless of the outcome an individual project.

Solar energy has a huge effect on the world economy. Domestically, the US market for PV is expected to be approximately $ 27 billion dollars in 2020 according to the Ministry of Energy, and directly and indirectly create 150 000 new jobs. Practically speaking, solar energy makes it even countries without a grid infrastructure to power isolated areas, and individuals to promote their own house, independent of current, constant receiving a free source of energy from the sun. Even in the United States distributed transmission lines and independence of energy becoming increasingly important due to aging infrastructure and local emission limits. As an example of energy independence, Hawaii Mauna Lani Bay Hotel installed photovoltaic cells on the roof terrace. These generate 75 kW of energy and the solar panel array is expected to pay off in five years.

Solar energy is not subject to political risks, and it is impossible to be blocked. Solar panels can also be placed on non-agricultural land, such as those present in New Mexico, the Californian desert, and Arizona. This can also be considered in other countries such as Pakistan, India, China, and even the Sahara desert in Africa. It is calculated (from Rice University white paper) that 25,000 square kilometers of solar panels would take to produce all of US electricity needs for a year, and there is certainly this amount of land available in the United States. In fact, more land is used to grow ethanol still. I expect that within 30 years of solar energy will be the main source of energy to be in a large part of the developing countries and the United States.

Source: by Deevan Aw


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