The Solar Boom Examined
You’re in the solar business doing solar installs, finding new customers, and buying solar leads to help you grow your company, so you know that the last decade has been huge for the solar industry. Photovoltaic and other solar technologies have rapidly been making inroads into the mainstream American consciousness as a viable, economical, and perhaps most importantly for future generations, an ecologically sound option.
But what’s really behind the solar boom of the past decade, and why does that matter to solar businesses like yours?
The Solar Gold Rush
Back in 2004, the United States’ entire solar energy production capacity was 500 megawatts. A mere ten years later, we had more than 20,000 MW of solar installed in the country.
Even more impressive is the fact that solar capacity in the U.S. is expected to double in the next two years. By 2016, we’re expected to have the capacity to produce enough solar energy to power approximately 8 million homes.
Let’s put that into perspective. Powering 8 million homes with solar power is the equivalent of taking 10 million gasoline-burning vehicles off the road, or shutting down 10 polluting, coal-fired power plants.
It’s clear that solar energy has the potential to help mitigate the effects of climate change, but the part of the story that has economists most interested is the solar industry’s effect on the job market.
The Solar Industry Making a Positive Impact on American Jobs
Between 2004 and 2014, the number of solar energy-related jobs in the U.S. grew by more than 870%. That number continues to grow, and as solar is projected to continue its meteoric growth spurt, job growth is expected to continue right along with it.
During 2013, a full 29% of all new electricity generation capacity added in the U.S. was from solar, finally usurping coal’s longstanding position of new energy growth dominance.
While solar energy may be growing at a higher rate than coal-powered energy sources, it still has a long way to go before its full production capacity eclipses that of traditional power sources.
Will solar and other renewables face challenges along the path to becoming de-facto energy sources in the U.S. and abroad? Absolutely. Still, if current trends are any indication, they will eventually topple the old guard.
What’s Behind the Growth of Solar?
As you’re already aware, the act of going solar has reached a point where it’s not just a pledge to leave a better world for the citizens of tomorrow, made by Hollywood elites with the money to afford solar and the time; it’s also a sound financial move.
Improvements in solar technology and economies of scale have certainly helped solar reach price parity with traditional sources of electricity, but it’s worth noting that 97% solar capacity added from 2004-2014 was added after the Solar Investment Tax Credit was written into federal tax law.
As it currently stands, the Solar ITC may expire on December 31st, 2016. It’s been renewed several times since its initial drafting in 2006, and it may be renewed again.
As a solar entrepreneur, you have a vested interest in making sure that tax credit continues to be available to your customers. The Solar Energy Industries Association is campaigning to extend the solar ITC. The choice to donate to their cause is yours, but it certainly seems like a wise investment for those in the solar industry.
[Photo Via: Interfax]
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