Solar Energy…

Things are finally heating up (no pun intended) for the solar energy industry. With petrol prices continuing to rise so do stock prices of some companies. After many years of promised rewards, could we be moving towards a trend of clean , affordable and consumer centric energy model ?

There was a time when electric energy was produced locally using direct current (DC). Before AC (alternating current) became the standard, there would be ‘local’ energy plants producing electricity for nearby users. Because of the efficiency of AC , the distribution costs were lower and the economies of scale created a model where a large plant could produce electricity for users much further away. And so it is today. There are many more plants necessary to produce more electricity for our increasing needs, but the power being produced is being sent long distances - sometimes hundreds of miles.

The lure of a clean and local power source within your control sounds very appealing not to just a regular Joe, but also the large energy conglomerates. Can’t you just feel the uneasiness in the gut of the big electric conglomerates - knowing that it could be possible for Joe to unplug ? And with distribution losses , even a large commercial solar energy site located some distance from your house may never be as efficient as one in your backyard or rooftop. Some clever distribution methods may again be pop up to shift the balance back. Maybe through the air distribution ? Most likely that’s a long way off. With the cost of solar cells decreasing and the efficiency rising, it appears that this technology could be very disruptive to the current model particularly if the price becomes attractive to the individual homeowner. Exactly where the tipping point is anyone’s guess. The opportunity to ‘unplug’ from the current grid could happen sooner that you think.

While there is a lot of hype surrounding solar technology and some red hot solar stocks, there is good reason to celebrate what is happening. Many of the solar ‘leaders’ in the solar stock market are based in China. As they build out their infrastructure, it is possible that they will have more choice since they are not as entrenched as we are in the corporate distribution philosophy and as the remaining developed countries discover the alternative, they could be well ahead in solar technology and benefit from the lead.

At the same time, being green and having a low carbon impact will possibly drive more people to solar energy. The media has been and continues to show the impact - real or imagined - of global warming. As the trend to reduce your ‘carbon footprint’ grows, the convergence of cheap solar cells may happen at a most opportune time. It’s sad that even today, some large electric producers are still building ‘clean’ coal fired plants and are experiencing a lot of negative fallout. The irony may also be that these large energy producers may also be the ones investing in wind and solar power.

While the costs are becoming lower, the cost to install a solar array for your home is still too high for the average consumer. One major help comes in the form of tax incentives for alternative energy. Even then, it’s still a large investment and there are some disadvantages and other issues that may slow adoption.

And just how ‘green’ is the technology ? Some major questions need to be answered . What amount of energy was used to produce the cells ? What amount of byproduct was produced ? What happens to old cells ? Shouldn’t we also try to reduce our total energy usage ?

Personally, I’m excited to see what is happening and eagerly await that moment when the tipping point is reached in cost and performance. Environmentally, this shift could have a very positive benefit with the added personal satisfaction of knowing it was the right thing to do.

What about you ?

---

Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically each day to your feed reader. If you don't have a feed reader, you can always have these articles delivered to your email inbox every day. Click here to sign up.

ZeroHype | Powered by WordPress | ElegantBlue is a custom theme by Nathan Rice