Solar Energy 2009 - The Year in Review

2008 was a bumper year for solar energy, despite theavailable for solar installations.
recession sinking its teeth deeply into most areas ofRebates And Incentives
the global economy, but what about solar energyOne of the things that kept small to medium-sized
2009? It seems like the recession may have caught upsolar projects ticking along in the US was the
with solar energy as well, because 2009 was a bit ofcontinued availability of federal tax incentives and
a down year. Not drastically so, but, still, it was the firstrebates and rebates and incentives at the State level.
no growth year of the decade. Here's a look at SolarCalifornia offers rebates via its California Solar Initiative,
Energy 2009 and what we might expect from 2010.which rewards customers with various types of
That Was The Year That Wasrebates, such as the Expected Performance Based
In 2008, it appeared that the solar energy industry wasBuydown (EPBB), which provides up-front cash
immune to the vagaries of the economic recessionrebates based on the calculated performance of new
that was causing such grief and suffering to just aboutsolar electric systems of 50 kilowatts or less. This is
all the rest of the economy. And it was expected thatpart of Governor Schwarzenegger's "Million Solar
that trend would continue in 2009. But, it was not to be,Roofs" initiative, which is supposed to provide an
as capacity outstripped demand and manufacturingadditional 3,000 megawatts of solar electricity.
had to be slowed down to allow demand to catch upLooking Into The Solar Crystal Ball
with supply and reduce the amount of surplus capacity.As the economy's financing woes continue to ease, it's
The consumer was the big winner in all this as theexpected that solar investment will increase, and, as a
price of solar panels and related equipment wasresult, so will solar installations. Solar equipment prices
slashed in many cases, making solar much moreare expected to stabilize, but, overall, the price should
affordable. But, as with much of the rest of thecontinue to decrease as the efficiency of the
economy. one of the main obstacles to solarmanufacturing process increases. The cost of
investment was the availability of financing. Financingmanufacturing solar panels has broken the $1 per watt
for any type of sizable investment was almost frozenbarrier for the first time, so everything points to further,
for a while, although the situation has gradually eased,more dramatic cost efficiencies in years to come. Can
with the financial institutions starting to feel moreyou say, "Fifty cents a watt"? Maybe not yet, but it
comfortable about lending money and making moreprobably won't be too long before you can.