Before you switch to solar energy, you might be interested to learn that prices fell in 2011 for solar panels and accessories. But why is that and why does that mean better prices for you?
Well, the first thing you need to know is that in 2011, China got into the solar energy field. As is typical for them, they undercut production prices of solar panels, forcing some U.S. and German solar panel manufacturers out of business and into bankruptcy. The solar panel manufacturing companies that realy relied on government grants and incentives were the ones that were hit hardest by China’s entry into the field. While bad for the companies and not so great for the economy in general, China’s entry into solar power is great for your solar panel expenses.
“Everyone’s missing the real story and it’s amazing how brain dead some people are,” said Jeremy Rifkin, an adviser to the German government and European Union on climate change and energy security. “It’s absolutely a positive thing that solar prices are dropping faster than anyone thought they could.
“It’s actually a great success,” the U.S. economist told Reuters. “Those criticizing solar for that are being ignorant or disingenuous. It’s a winnowing out process similar to what the computer and communications sectors went through. More companies that can’t stay ahead of the curve will go belly up.”
You are not alone in wanting to upgrade to solar power. According to the Solar Energy Industries Association (SEIA), solar power installations in the United States increased 67% in the 4th quarter of 2011. However, this high interest in solar power is due to more than just falling prices of equipment. Government incentives based on the U.S. Treasury Department’s 1603 program, due to be renewed in 2012, also offer homeowners and businesses motivation to go green with solar energy.
“Extension of this worthwhile program will allow taxpayers to reap the significant economic and energy policy benefits associated with the expanded deployment and use of solar energy,” SEIA writes.
“The 1603 program has helped leverage over $24 billion in private sector investment in for a wide range of clean energy projects, and extending the 1603 program will create an additional 37,000 jobs in the American solar industry in this year alone,” President and CEO Rhone Resch states.
Between the drops in price for solar equipment and the government incentives, there has never been a better, cheaper, time to go green with solar energy.
[Photo courtesy of MorgueFile]
