July 1st, 2008
Brightening outlook for solar energy?
Wanted to add another couple of links related to Harry’s post yesterday about SolarCity. The actual news of the day is the company’s new 8,200-square-foot facility in Phoenix, from which it will run its SolarLease program.
One thing that Harry didn’t mention in his post is a recent report from research firm Clean Edge and the non-profit green business organization Co-op America predicting that the solar industry could generate up to 10 percent of U.S. electricity by 2025 (yes, a mere 17 years from now).
The Utility Solar Assessment Study suggests solar as a great alternative for addressing grid congestion or as a back-up during periods of peak usage. It encourages solar companies to reduce its costs to $3 per peak watt or less by 2018 (it’s an average of $5.50 to $7 per peak watt right now), and it urges the government to extend investment tax credits, some which are set to expire by the end of this year. Here are some other high-level findings:
- We’ll likely hit a cost crossover point around 2015, given the pace of solar prices decline and rising fuel costs for coal, natural gas and nuclear.
- The investment required to hit the 10 percent mark will not be insignificant: The study pegs it at $450 billion to $560 billion between now and 2025 (an average of $26 billion to $33 billion annually). Given that utilities spent $70 billion on power plants, transmission systems and distribution technology last year, this investment doesn’t seem insurmountable.
- Utilities leading solar energy investment include Southern California Edison, Duke Energy and Pacific Gas & Electric.
You can grab the whole report by visiting this link.
Finally, I recommend reading this terrific news analysis on the Green Wombat blog about the potential of the solar power industry — and whether or not Congress will do its part by extending the investment tax credit.
Illuminating.
Heather Clancy is an award-winning business journalist in the New York area with more than 20 years experience covering the high-tech industry. See her full profile and disclosure of her industry affiliations. See her full profile and disclosure of her industry affiliations.
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