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Green rush to finance solar

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Environmental & Economic Benefits

The "green gold rush" is on. Global investment in renewable energy surged some 60 percent, to $148 billion last year. Investment in clean energy from wind, solar and biofuels rose three times faster in 2007 than predicted by the UN Environmental Program, with wind power attracting $50.2 billion, a third of all clean energy investments. Investment in solar energy soared by 254 percent to $28.6 billion last year. This "green gold rush" is propelled by the soaring fossil-fuel prices, and concerns over carbon dioxide emissions that fuel global warming.

The world is at an undeniable crossroad. Projections show three to four times more electrical power could be required over the next 50 years to support continued growth in population and economic output. Clean, renewable sources are the answer. "Unlike other major energy transitions, such as wood-to-coal and coal-to-oil, moving from oil to alternatives will be forced and rapid," writes Charles Cresson Wood, President of Post-Petroleum Transportation, a consulting firm.

The Cost of Conventional Energy

In the last six years, uranium prices have moved from $7 a pound to $80 a pound. Coal has moved from $22 a ton delivered at the plant to $55 a ton, and natural gas has gone from $2 per million BTUs to $12 per million BTUs. Oil went from $20 a barrel to $145 a barrel.

As these dirty energy resources become more costly, so follows the delivered price of electricity jumping by 70 percent in the last six years in New Jersey and many other states. All analysts expect continued increases in electricity costs.

Americans Want Solar

94% of Americans say it's important for the U.S. to develop and use solar energy. 72% favor extension of Federal tax credits for renewable technologies, and 77% of Americans want the government to make solar power development a national priority, according to the independent polling firm, Kelton Research, June 10, 2008. "These results are an undeniable signal to our elected leaders that Americans want job-creating solar power, now," said Rhone Resch, President of the Solar Energy Industries Association (SEIA).

"Solar development means job growth for Americans, by Americans, in an industry that will benefit America," said Dr. Gerald Fine, President & CEO of SCHOTT North America. "Rather than rely on foreign sources for fuel, the U.S. can aspire to become the world's leader in clean energy."

General Electric, with a goal of investing $6 billion in renewable energy by 2010, already surpassed the $4 billion mark this July. GE says that within two years, renewable energy will make up almost a quarter of its total investments in energy, up from 10% in 2006. Investment banks Morgan Stanley, Merrill Lynch and Goldman Sachs all plan to take advantage of global interest in renewable investments. Meanwhile, NYMEX, the New York-based stock exchange, recently formed a consortium of financial institutions to launch a Green Exchange to trade Renewable Energy Credits.

The Market Speaks: Renewable Energy Finance Forum Wall Street

Over 600 senior executives attended the 5th annual Renewable Energy Finance Forum (REFF) held this June in New York City. "Each year, we have increasingly seen financial leaders on Wall Street recognize renewable energy companies as an important growth sector for the US economy," said Michael Eckhart, President of the American Council On Renewable Energy (ACORE) who hosted the forum along with Euromoney Energy Events. "This new reality has helped launch renewable energy investing into mainstream financial arenas and continues to drive the momentum of the industry," said Eckhart.

Top analysts forecasted the industry's potential in the US, for solar power, wind power and bio-fuels. Speakers also drew attention to wavering political issues threatening the viability of renewable developments as Congress currently debates the extension of critical investment catalysts like the Investment Tax Credit and the Production Tax Credit.

"Wall Street has shown us that the full forces of American innovation are ready to be deployed to meet our energy challenges. If government leaders can provide a stable long-term climate for investment, the renewable energy sector will see unprecedented growth, providing extensive economic opportunities and environmental benefits," said John Geesman, Co-Chair of the ACORE Board of Directors and former Calif. Secretary of Energy.

GE Financial Services and ACORE released a report at the REFF weighing the long-term economic impact of wind development with the up-front cost of the production tax credit. The report found that the net present value of 2007 US wind development is worth $250 million more than the price tag for the tax credits, which was about $9 billion last year. According to the report, the tax credit pays for itself because of tax revenue received from wind projects, worker wages and other taxes. Once the PTC and ITC issues are behind the industry, the next big battle on Capitol Hill will be over a carbon-weighted policy like cap and trade, according to presenters.

"We simply need more energy. We're not waiting around for governments to craft the perfect policies," said Vivienne Cox, Executive Vice President of BP's alternative energy business. "This is an important market, and we're going to build a business around it."

The US is currently the world's fourth-largest solar power market after Germany, Japan and Spain. Japan is aiming for 30 percent of all its homes to have solar panels installed by 2030, bringing the number of installations to 14 million, according to Kyodo News. Japanese solar panel manufacturers, which include Sharp, account for half of the world output of solar power equipment.

Grid Parity

Grid Parity is the point at which Photovoltaic (PV) electricity costs the same or less than power derived from the electrical grid. PV Grid Parity is expected beginning 2012 in places where sunshine is plentiful, and 2018 in areas of the world with medium sun exposure, according to a study in June from iSupply Corp., an electronics industry analysis company.

Worldwide investments in the production of PV cells will rise to the same level as those for semiconductor manufacturing by 2010, due to booming demand for solar energy. Each PV factory will require an investment of $500 million or more, employ as many as 1,000 workers per site and generate annual revenue of $1 billion per year or more.

By 2010, as many as 400 production lines in the world that can produce at least 1 Megawatt (MW) of PV cells per year, will be in place, representing a four-fold increase in production lines from 2007. Factories capable of 1 Gigawatt (GW) of annual PV production will also be established in the future, to ensure continued strong delivery of PV cells to the market. PV cell production will become cheaper over time, with cell makers Q-Cells, AG, and REC Group expecting a reduction in PV system costs of 40 percent by 2010.

Tom Werner, chief executive of SunPower Corp., the largest North American solar panel manufacturer, sees Grid Parity for solar power in the US and elsewhere happening in about five years, or possibly as soon as 2010. "That's actually more aggressive than what we would say previously, and that's because the cost of electricity is going up faster than we had ever modeled," Werner said at the Reuters Global Energy Summit this past June.

Suntech Power Holdings Co. Ltd., one of the largest of a growing number of Chinese solar companies, sees the same five-year timeline, thanks to increasing supplies of silicon that will help drive down costs.

The end of polysilicon shortages could cause PV costs to drop in half. "It takes about two or three years to add capacity," says Travis Bradford, an industry analyst for the Prometheus Institute. The shortage has been severe enough to drive up silicon prices to more than 10 times normal levels, to $450 a kilogram, adds Ted Sullivan, an analyst at Lux Research.

The Business Case For Solar Now

Right now, in New Jersey, the average kilowatt of electricity is being sold to residents at the rate of 18 cents kwhr. If you purchase a 5 kw solar PV system for $40,000 that could generate about 8,000 kilowatts a year, and could easily last for 30 years (panels often carry a 25 year manufacturer's warranty), your system would generate about 192,000 kilowatt hours over the 30 years, after subtracting 20% for rated age. Now, if you take the 192,000 kilowatt hours and divide it by $40,000, then each kilowatt costs you about 15 cents. Would you rather pay for your own clean, renewable energy system, that carries a 25 year warranty, or purchase dirty electricity coming from coal, nuclear or oil sources, at the rate of 18 cents?

I asked energy analyst, Charles Cresson Wood, if he thinks the price of solar electricity is at Grid Parity now with conventional electricity, when analyzed over 25 years, the typical warranty period of today's solar panels. He replied, "When one realistically considers the trajectory of the costs for fossil fuels, then solar, wind and other renewables are less expensive over a time frame such as that which you mention." The analysis is based on research done for his book Kicking The Gasoline & Petro-Diesel Habit.

Solar Is A Better Choice

Energy consultant Jim Harding estimates the operating cost per kilowatt-hour for a new nuclear plant will be in the region of 30 cents for its first dozen years, only dropping to 18 cents after construction costs are paid down. With distributed solar at the low end of this bracket and dropping, and with concentrated solar and wind power estimated at 14 cents per kilowatt-hour, energy companies are backing away from their proposals for new nuclear facilities. Of the seventeen currently in the planning stage, Moody's Investor Service only expects one or two to be on line by 2015.

Cap-And-Trade System

A cap-and-trade provision would make it costlier to emit carbon into the atmosphere and discourage the burning of fossil fuels. The economics of solar and other cleaner energy sources would be even more competitive.

According to Amory Lovins, physicist and author, reducing carbon emissions would be cheaper and safer if nuclear was rejected in favor of alternatives that are sustainable. Investing in the nuclear option would suck up capital that would be spent more cost-effectively on renewable energy, efficiency and conservation. In contrast to the vast money pit required by nukes, every dollar invested in energy efficiency programs returns three dollars in electricity savings to utility customers.

While debates on disposal of radioactive waste, vulnerability to terrorist attacks, and large-scale use of fresh water required to run nuclear plants continue, it's tough to argue with the numbers. If the debate is between a clean, renewable source such as solar, which can reach utility scale in some parts of the country, and a more expensive form of power that Wall Street investors won't even touch, then the nuclear defenders may be running out of arguments. The bottom line is that nuclear costs two to 10 times more than its clean competitors.

Incentives For Renewables

There is not yet a national program in place, except for a 30% Investment Tax Credit (ITC) limited to a maximum of $2,000 for homeowners, with no limit for business. This applies to both solar PV and domestic solar hot water systems. The ITC will expire at the end of 2008, unless Congress passes an extension, which it is slated to do, by many political analysts.

Currently 25 states offer various incentives for homes and businesses. In New York, a rebate of approximately 50% is available for a solar PV system. New Jersey's incentive program is going through a transition after offering an average of 60% rebates for the past seven years.

The plan is to move into a performance-based incentive, called the Solar Renewable Energy Certificates (SRECs), which pays the solar PV system owner annually based on the number of kilowatts produced by the system. A residential rebate of $3.00 per watt for solar PV systems, starting in 2009 till 2012 with incremental decreases is planned. That rebate would be close to 40% of the system cost.

For detailed information on specific state rebates, visit the Database of State Incentives for Renewables & Efficiency.

Power Purchase Agreements & Leases

The use of Power Purchase Agreements (PPAs) and similar leasing instruments to finance residential and commercial solar power installations is taking off. The commercial solar PPA market has already been active in California and New Jersey.

The Atlantic City Convention Center has awarded Pepco Energy Services, a 20-year PPA to install one of the largest single roof-mounted solar arrays in the US. Under the 20-year contract, Pepco will build, own, operate and maintain the 2.36-Megawatt solar array for the Convention Center. Construction is planned for completion by December 31, 2008. Jeanne Fox, President of the New Jersey Board of Public Utilities states, "This is an example of the kind of initiatives we hope to see as we transition to the sale or trade of SRECs to pay for solar projects."

Last year, half of all the commercial solar installs in the US were PPAs, and this year that number is running between 60 and 80 percent, according to Jon Guice, researcher at AltaTerra, in Palo Alto, CA, a green energy consultancy group.

Sun Run, one of the first PPA-based residential distributed power companies in California, offers a standard agreement providing electricity at 13.5 cents per kilowatt-hour (kWh) for 18 years, according to Nat Kreamer, Sun Run's CEO. "If you do a 30-year look-back, residential electricity rates in California have risen an average of 6.7 percent per year," he says. They offer various up-front payment options, so that an increased payment would result in delivered electricity decreases.

"We found the sweet spot for customers is up to $10,000 for prepayment, and that they want flexible options for reassigning the contract when they move, and not a big buy-out at the end," Kreamer says. "At the end of the term, customers can renew their contracts for a year at a time, or buy out the system at a fraction of the installed cost."

Another form of financing for residential solar systems that requires less or no up-front payments, is leasing. David Arfin, vice president of customer financing at Solar City of Foster City, CA states that, "The big difference is with a lease: there is no money down, and in most cases homeowners are saving money from day one." Solar City leases typically run for 15 years, after which time homeowners can purchase the system for 20 to 30 percent of the cost of the installed system. Leases can be extended for five-year increments.

"With a PPA, the residential host agrees to pay for certain kWh produced on his or her roof, and they have a variable payment depending on what is produced and used. With our lease, there is a fixed payment every month, but they still get the benefits of whatever excess power is generated," said Arfin. "It's sort of like the difference between leasing a car by the mile or by the week," he adds.

A Home Equity Line of Credit is the most profitable choice for credit-worthy NJ homeowners to finance a solar system. Their monthly loan payment will be comparable to the savings on their current electric bill. After factoring in rising electric rates and the SRECs, the homeowner can get extra income from their solar purchase.

The fact is, unless you own your own electric generating system, or have a set price agreement with a PPA or PPL, you are leasing your power from a utility company with no control over its future cost.

Clean Power Finance has tools and loan products to make the purchase of home solar power systems more affordable. Clean Power Finance tools assist with completing the rebates, and match multiple funding options. Everything is done online.

The Borrower's Guide to Financing Solar Energy Systems: A Federal Overview provides information to assist both lenders and consumers in financing solar electric and thermal systems, with descriptions of special mortgage programs for energy-efficient homes. The free brochure is online at http://www.nrel.gov/docs/fy99osti/26242.pdf

For Super Big Renewable & Efficient Ideas The Dept of Energy will make up to $10 billion dollars in loan guarantee authority, available for projects employing energy efficiency, renewable energy and advanced transmission and distribution technologies that constitute New or Significantly Improved Technologies. It's limited to 80% of total Project Costs, and requires a non-refundable minimum application fee of $18,750 to be considered.

Breaking news: Vice President Al Gore has begun a campaign that is so ambitious, it could be game-changing. He is challenging our nation to produce 100% of our electricity from renewable energy within 10 years. Al Gore noted, "To those who say 10 years is not enough time, I respectfully ask them to consider what the world's scientists are telling us about the risks we face if we don't act in 10 years."

To learn how you can get involved in the Solar solution, and energy efficiency, a course is being offered at Brookdale Community College, in Lincroft, NJ on Tuesday nights from 7-9pm Sept. 23 through Oct. 7, 2008 and again in January 2009.For scheduling, call: 732-842-1900.

For more information go to http://www.bized.com

Cathy Sims, editor and publisher of the biz.ed Guide since 1986

Light green - Kid-friendly solar energy Info

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Learning About Solar Energy From the Dept of Energy: It's a bit cloudy

Interest in solar energy as an energy source rises and sets along with the tax credits that fuel its growth. Because I am essentially a kid at heart, I visited the Energy Kid's Page of the Energy Information Administration to learn more.

The Energy Information Administration (EIA), created by Congress in 1977, is a statistical agency of the U.S. Department of Energy. "Our mission is to provide policy-neutral data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy and its interaction with the economy and the environment."

The Energy Kid's Page starts off in a friendly manner in a way that even I could understand:

The sun has produced energy for billions of years. Solar energy is the sun's rays (solar radiation) that reach the earth.

Some of this solar energy is converted to heat, which is used to heat water and building interiors.

So far, so good.

Solar energy can be converted to electricity in two ways:

Photovoltaic (PV devices) or "solar cells" - change sunlight directly into electricity. PV systems are often used in remote locations that are not connected to the electric grid. They are also used to power watches, calculators, and lighted road signs.

Solar Power Plants - indirectly generate electricity when the heat from solar thermal collectors is used to heat a fluid which produces steam that is used to power generator. Out of the 15 known solar electric generating units operating in the United States at the end of 2006, 10 of these are in California, and 5 in Arizona. No statistics are being collected on solar plants that produce less than 1 megawatt of electricity, so there may be smaller solar plants in a number of other states.

With childlike wonder, I pressed further, wanting to learn how energy-efficient, renewable solar energy can help reduce fossil-fuel-generated electricity (half of which comes from burning coal, which in turn creates the 104 tons of mercury annually we have the pleasure of breathing, drinking, and eating).

So I dug into the Photovoltaic Section. Without warning or proper disclosure, The Energy Kid's Page sent me back to college for my PhD in electronics. (Guys: Seriously, do you really think your Kid Page is kid-friendly?!)

With quick googling, I found an online university and enrolled, studied night and day for four entire weeks, got my PhD, and now am delighted to give you this kid-friendly explanation of solar energy.

We'll shine a light on photovoltaic energy and the three types of solar power plants.

Photovoltaic Energy

Photovoltaic energy is the conversion of sunlight into electricity. A photovoltaic cell, commonly called a solar cell or PV, is the technology used to convert solar energy directly into electrical power. The solar cell is a nonmechanical device usually made from silicon alloys.

Sunlight has photons. Photons have energy. The solar cell gets slammed by photons and absorbs some of them. Others bounce right off like basketballs or pass through like ghosts.The absorbed photons knock electrons out of place. Electrons are the stuff that electricity is made of. The electrons bubble up to the surface of the solar cell.This movement to the surface creates an imbalance. When you hook up a wire from the solar cell to an outside battery, you create a path that the electrons will follow.That flow into the battery is electricity.

A single photovoltaic cell will power your calculator and your curiosity, but not much more. At 1 or 2 watts, you need hook up a bunch together to get some real juice flowing. This is called an array, and can include as many cells as you can afford. Definitely a case of the more you spend, the more you save.

Don't Stick It Where The Sun Don't Shine

Sunlight is constant - the clouds and fog are not. Climate conditions significantly effect the amount of solar energy received by a photovoltaic array and, in turn, its performance. Most current technology photovoltaic modules are about 10 percent efficient in converting sunlight. Further research is being conducted to raise this efficiency to 20 percent.

AC/DC: Conversion

The battery collects direct current (DC). You need alternate current (AC) flowing through your light fixtures. Solid state devices called inverters convert DC power to AC. Problem solved.

Photovoltaic Energy Recap: photovoltaic or solar cells absorb the slings and arrows of outrageous photons from the Sun, which shove electrons to the surface of the cells, where you store them by having them flow through a wire into a battery. You break out your inverter to make that battery energy usable. But at 10% efficiency, they suck big time in consistently poorly lit areas, such as Sweden during November to January when they're nearly blacked out and lighting their way with seal blubber candles and Ikea accent lamps.

Next up, kids (and I'll keep it friendly):

Solar Thermal Power Plants

Solar thermal power plants use the sun's rays to heat a fluid, which is put into water and turns it into steam. The steam propels a turbine that powers a conventional generator that creates electricity. Solar thermal power generation works essentially the same as generation from fossil fuels except that instead of using steam produced from the combustion of fossil fuels, the steam is produced by the heat collected from sunlight. Solar thermal technologies use concentrator systems due to the high temperatures needed to heat the fluid.

In short, they replace fossil fuels with solar energy to run turbines which create electricity.

The three main types of solar-thermal power systems are:


parabolic troughs

solar dish, and

solar power tower

Parabolic Troughs

The most common type of solar plant, the parabolic trough is used in the largest solar power facility in the world located in the Mojave Desert at Kramer Junction, California. This facility has operated since the 1980's and accounts for the majority of solar electricity produced by the electric power sector today.

A parabola is U-shaped. The parabolic trough is like a magnifying glass: it takes sunlight and focuses it on a spot to heat it up. That spot is on a tower, surrounded by all the parabolic troughs. It heats the spot up to 400 degrees Celsius. The parabola can follow the Sun's movement during the day in order to get the most sunlight.

The spot that is heated up is filled with fluid. This fluid flows to heat up water and create steam. The steam propels a turbine that powers a conventional generator that creates electricity. The fluid cools down a bit and is returned to the spot on the tower to be reheated to 400 degrees.

The plant is usually designed to operate at full rated power using solar energy alone, given sufficient solar energy. However, all plants are hybrid solar/fossil plants that have a fossil-fired capability that can be used to supplement the solar output during periods of low solar energy. This defeats the purposes of generating renewable energy, but I guess the scientists know what they're doing.

Solar Dishes

A solar dish/engine system utilizes concentrating solar collectors that track the sun on two axes, concentrating the energy at the focal point of the dish (the box-like thing sticking out from the center of it) because it is always pointed at the sun.

The solar dish's concentration ratio is much higher that the solar trough, typically over 2,000, with a working fluid temperature over 750 degrees Celsius. The power-generating equipment used with a solar dish can be mounted at the focal point of the dish, making it well suited for remote operations or, as with the parabolic trough, the energy may be collected from a number of installations and converted to electricity at a central point.

The engine in a solar dish/engine system converts heat to mechanical power by compressing the working fluid when it is cold, heating the compressed working fluid, and then expanding the fluid through a turbine or with a piston to produce work. The engine is coupled to an electric generator to convert the mechanical power to electric power.

Solar Power Tower

A solar power tower or central receiver generates electricity from sunlight by focusing concentrated solar energy on a tower-mounted heat exchanger (receiver).

This system uses hundreds to thousands of flat sun-tracking mirrors called heliostats to reflect and concentrate the sun's energy onto a central receiver tower. The energy can be concentrated as much as 1,500 times that of the energy coming in from the sun. Energy losses from thermal-energy transport are minimized as solar energy is being directly transferred by reflection from the heliostats to a single receiver, rather than being moved through a transfer medium to one central location, as with parabolic troughs. Power towers must be large to be economical. This is a promising technology for large-scale grid-connected power plants. Though power towers are in the early stages of development compared with parabolic trough technology, a number of test facilities have been constructed around the world.

What We Learned Today

We learned that solar energy can be used to heat water and interiors.

Next, we learned that solar energy can be converted to electricity using photovoltaic cells and solar thermal power plants. The photovoltaic cells take in photons, which shove aside electrons. The electrons, seeking a new home, journey in mass across a wire to their new land called Battery. Solar thermal power plants work by focusing sunlight to heat a fluid, and that fluid turns water into steam, which runs a turbine, and that turbine is the engine to run an electric generator.

And most important, we learned that, no matter what you label something, such as being designed for kids, that does not make it so. I think we need to call in the Department of Commerce to enforce the Truth-in-Labeling Act with the Department of Energy's Energy Kid's Page, one of the most kid-unfriendly websites known as mankind. And I'm going downtown right now to file a claim for reimbursement of my expensive online tuition for the PhD I had to get just to understand this Energy Kid's Page.

And now I would like to offer you free access to powerful info on energy efficiency that's easy to read and cuts through all this "green" information clutter -- so you can literally start making positive changes today.

You can access it now by going to: [http://www.a19.com/pub/articles]

From Cinnamon Alvarez: Founder, A19 -- woman-owned green manufacturer of hand-made ceramic lighting fixtures

Solar energy - the Green Energy Source

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Solar Power, a renewable source of energy, is one of the most available sources on Earth. However, being an intermittent source of energy, it needs to be enhanced by storage or another energy source. Even though solar energy systems nowadays still have low average efficiencies, due to modern technology, research is being put into developing high-efficient and low-cost systems daily. Using solar energy is beneficial because it allows a more environmentally friendly or a "greener" way of living. It is also a freely available resource, which is one of its many advantages as once installed and does not cost more than the cost of setting up and routine maintenance.

Concentrating Solar Energy Systems such as "Stirling Disks" are large solar power plants that use modern technologies to convert light energy into useful electric energy. A direct technology of using solar energy involves the usage of Photovoltaics, which is a system is directed for small appliances and homes.

Solar Power Information

It is important to know of some information about solar power before purchasing it. The definition of solar power is "energy systems that produce energy directly from sunlight". It is the conversion of sunlight to electricity. Most of our energy resources are anyway indirect forms of solar energy. Without the sun, the wind would not blow. Additionally, the sun causes evaporation of water which results in water collecting up in rivers after condensation. This water is used for hydro electrical power. Without the sun, water would be eternally locked in a solid state: ice. Moreover, bio-fuels cannot exist without the sun as well. If you were to go more into depth it is also the sun that allows life, which in turn, would provide fossil fuels. An essential fact about solar energy is that it is a renewable source of energy as sunlight could be used any time.

Solar power is transmitted directly by "photovoltaics" (PV), or indirectly with "concentrating solar power (CSP). Photovoltaics are used to power small to medium sized equipment such as calculators to off-grid homes. CSP involves two methods: the first method is to simply boil water which is then used for providing power; the second and more complicated method entails technology such as the sterling engine dishes which use a sterling cycle engine to power a generator. Another detail to keep in mind that even though installation of solar power is costly, this cost has decreased significantly over the past couple of years making it affordable for almost everyone. Furthermore, small solar applications are also being used to replace other sources in the developing world. Since solar power is a renewable source of energy, this means you can pay up front for the next twenty years or so of energy. However, non-renewable energy sources are purchased as consumed.

Solar Power Efficiency

So how efficient is solar energy in reality? Research states that the current photovoltaic conversion efficiency is about 15% and improving day by day! Additionally, some experimental models are yielding over 40% efficiencies! This shows that solar energy is becoming more superior than what is was about twenty years ago. Solar panel efficiencies are averaged at 20%. However, do not be discouraged. The most advanced solar energy systems are estimated to have an average of 40% efficiencies. However, when converting the resulting electricity (from solar energy) into light the efficiency does reduce by 15%.

Thus, solar panels do have a reduced efficiency when it comes to lighting up our homes. Nevertheless, the most proficient way of making most of solar energy is to utilize as much direct sunlight through day light and passive solar heating technologies and also use the highest efficiency solar panels for the rest of our energy requirements. High efficiency solar cells are a type of solar cell that averages the highest efficiencies in comparison to standard solar cells. Even though solar power systems generally still have low average efficiencies, a lot of research is being put into developing high-efficient and low-cost systems daily.

The Advantages of Solar Energy Technology in Your Life

Even though solar energy does have its downsides, such as intermittency, where it has to be combined with a form of storage or another source of energy, it still has many advantages to it. Such advantages include reliability, cost, environmental friendliness, aesthetics, and sustainability. Solar energy, for one, is more reliable than wind power and hydro power. This is because the sun will continue to rise for the next 4 billion years without fail, whereas, wind and water might not be available daily. In cases such as during the night and cloudy nights, where solar power is not useful the problems are eased as intermittency is 100% predictable. Furthermore, another advantage of solar power is that although clouds diminish solar power it does not eliminate it.

One essential advantage of solar collectors is that they require minimum maintenance one installed and also provides free energy. Additionally, although solar cells do wear out, their lifespan is measured in decades. The durability of photovoltaic cells improves year by year. More importantly, even though solar cells have been an expensive method of generating electricity, this cost is reducing per kilowatt per year. In addition, solar cells also operate cheaply after installation. Furthermore, solar power has its advantages when it comes to environmental friendliness. Nowadays, everyone is going "green" in order to conserve and protect our earth. Solar power is an efficient way of going green, since it produces zero pollution.

Solar powered generators are known not to even produce any noise! Moreover, even though solar energy requires a lot of space, space that is found on rooftops of existing structures is more than enough to produce an adequate amount of solar energy without occupying any extra land area. One of the advantages of solar power is that it is estimated that our earth is continually flooded with 175 trillion Kilowatts of solar power per day. This means that there is an extraordinarily reliable annual energy supply of 1,530,000 Terrawatt hours daily. On the other hand, resources such as oil, coal, gas, nuclear power and wood produce 15 times LESS than this. So presuming that the sun is going to keep on shining for another estimated 4 billion years, solar power is a highly sustainable resource.

However, you might be discouraged by the look of many solar cells. Do not worry. Due to the advantage of modern technology photovoltaic cells are becoming available in many colours such as black or brown, to match roof top colours. Additionally, how often is it that we would look at the rooftops of a house anyway?

Solar Power and its Benefits

This renewable source of energy has many benefits. This is the reason it is being advertised increasingly due to the combination of modern technology and simple sunlight. So what makes solar power beneficial to our lives? Well most importantly, since solar power is intermittent it is not advisable to run a solar power system in areas with low sunlight level. It is helpful to have a backup system in the events that the sun does not shine for a few days. However, on the good side, if there is a power outage you will still have electricity if you run on solar power. If more energy is required simply add more solar panels.

Solar energy is useful because it can be used for many day to day tasks, such as heating water, drying clothes, powering attic fans and small appliances, produce lighting for both the indoors and outdoors of a building, and better yet power cars! Additionally when using solar energy, you eliminate the cost of foreign and other sources of energy in your home. Even better, utility companies might buy that extra energy from you if you solar power system produces more energy than you require.

A further benefit of solar power is that gas or power grids are not required to run solar power systems, so even if the installation is initially expensive, running the system does not cost a thing! Another vital benefit to keep in mind is that solar power technology is constantly improving in an effort to decrease cost and increase efficiency. Using solar power is beneficial because it allows a more environmentally friendly or a "greener" way of living with zero pollution. It is also a freely available resource, which is one of its many advantages as once installed , it does not cost more than the cost of setting up and routine maintenance.

Solar Power Technology

Due to the rapid improvement in solar technology lately many homes are solely dependent on solar power globally. This leads to the question of how solar energy is put to use. It is claimed that most solar systems can collect heat created by sunlight striking an object. An example of this is to simply concentrate light with mirrors or lenses to produce enough heat to start a fire. This indirect method of producing solar power is known as "Concentrating Solar Power" (CSP). As briefly mentioned earlier, CSP systems use the simple technology of lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. The consequential heat is then used as the heat source for a conventional power plant. The "Parabolic Trough" and the "Stirling Dish" are two examples of concentrating technologies. In all concentrating solar power systems a working fluid is heated by the concentrated sunlight.

It is then used for either power generation or energy storage. Furthermore, it is important to provide the continuous availability of energy since solar energy is not available during the night. Since solar power is an intermittent energy source, all available energy made available should be taken when available, stored, or transported via transmission lines to where it can be used. In storage solar energy is stored at high temperatures using molten salts. These molten salts have low-cost, high specific heat capacity and can distribute heat at temperatures compatible with conventional power systems. This expertise helps increase efficiency of the system.

A direct method of solar technology involves the "Photoelectric Effect". It was in 1839 that Edmund Becquerel discovered the technique of producing an electric current in a solid material using sunlight. Once this method developed it was found out that photoelectric or photovoltaic effects caused certain materials to switch light energy to electrical energy at an atomic level. The Photoelectric Effect uses the simple method of reflecting, absorbing or direct pass of light. However, it is only the absorbed light that actually generates electricity.

Hopefully this information should be useful if you are considering using solar power as an energy source for your home. Just remember even though there are certain disadvantages to think about, the number of advantages outweigh the number of disadvantages. These disadvantages can be improved vastly as technology improves. Additionally, it is important to keep in mind that solar powered appliances have vastly changed for the better when compared to ten years ago.

Keep in mind that solar energy systems are suitable in regions with a lot of available sunlight. So do not opt out to get a solar panel system unless you are completely sure of the surroundings. Again, as suggested earlier, it is best to have an alternate energy source in case of low availability of sunlight. Although solar power is an energy source that has only been recently utilized, it might just become the most crucial energy source of the future.

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