GetSolar Staff. Sunday, November 14th 2010 09:00
Some businesses and homeowners are motivated to go solar because they want to reduce their environmental impact – but for others, it’s all about the potential savings. By reducing the consumption of grid-sourced energy, solar power can slash a household or business’ energy bills significantly. But can a solar installation do more than break even and have a positive return on investment?

The answer is yes – with some caveats.

In most cases, solar arrays will have a payback period – the length of time they take to pay for themselves through energy savings – of no more than 15 years. (Solar water heating systems, which are much cheaper than home solar installations, have a shorter payback: Because they only cost a few thousand dollars, they will pay for themselves in far fewer than 10 years.)

In states with robust solar incentive programs, solar installations can take much less time to pay off. In places like California – which often have rebate programs at the municipal level – or New Jersey – which requires utilities to pay clean-energy producers for the power they generate – solar projects’ payback can be surprisingly short.

Yet even solar installations in states without strong rebate programs can pay for themselves in short order.

On November 12, the St. Louis Post-Dispatch profiled chemical distribution company Walsh & Associates, which recently put 416 solar panels in place at its warehouse. The array’s $500,000 price tag was offset by a 30 percent federal tax credit and a one-time, $50,000 payment from utility Ameren – but Walsh assumed the rest of the installation cost.

Even so, the company expects its solar project to be paid off in just six to nine years. The reason for the quick payoff is that Walsh will cut its energy spending sharply: By going solar, the firm will slash its $36,000 annual energy bill to just $1,500.

Assuming the array has a 25-year useful life, the chemical distributor anticipates that it will enjoy a return on investment of half a million dollars. Homeowners who go solar shouldn’t expect to save $500,000, but they, too, can see a positive ROI by installing a solar array.

Solar has environmental benefits, of course – but it’s hard to ignore the economic ones.

Solar hot-air collectors and geothermal heat pumps are two of the most environmentally friendly ways to warm your home.

ZERO ENERGY HOUSE: This home in North Carolina features passive solar heating and a geothermal heat pump. (Photo: skrobotic/Flickr)

Heating accounts for more than 30 percent of the energy used in the average home. Consider replacing or supplementing your heating system with solar or geothermal heating systems — two old technologies that are getting modern upgrades. Some up-front costs (and a bit of labor, in some cases) can help you save money on utility bills in the long run. You will also save energy and reduce your ecological footprint.

Solar hot-air collectors

Solar electric panels remain cost-prohibitive for many homeowners, and it may not be feasible to install enough solar electric panels to cover your heating needs. A cheaper and simpler solution is a solar hot-air collector, which can be mounted on a roof, wall or even in the back yard. Solar hot-air collectors are essentially a tempered glass panel, insulation panels and a metal collector plate layered inside an aluminum frame.

An electric fan circulates air from the house through the collector and back into the home. On sunny winter days in cold climates, the metal plate heats up the air and increases the indoor temperature, offsetting some of the furnace’s energy use.

A 2007 case study in Home Power magazine estimated that a homeowner can recoup an initial investment of $4,000 within eight years through lower natural gas bills. After eight years, he would be pocketing an estimated $500 in additional savings per year.

A solar hot-air collector also could cost far less than $4,000. I have found a solution to high energy costs and have learned how to replace most of my heating costs with a ‘Solar Heater’ that you can build with parts from around your home and for as little as $30. read more …

Geothermal heat pumps

Geothermal, or geoexchange, heat pumps (GHPs) are a more expensive prospect and are certainly not a DIY project. GHPs, which require professional installation, take advantage of the constant temperature six feet under your home. Because the subsurface temperature is relatively warm in winter and cool in summer, a GHP can replace both your heating and air conditioning systems.

(continued below)

Residential geothermal heat systems have been used since the 1940s, so they are certainly not a new idea. However, the systems are getting less expensive, more reliable and more technologically advanced.

The best GHPs run water, rather than air, through the system, and can even supply hot water for the house. The newest models have two-speed compressors and variable fans for additional comfort and energy savings.

There are new EnergyStar ratings for GHPs to help you choose a reliable, energy-efficient system. Efficient models also qualify for a federal tax credit for 30 percent of the purchase price, with no upper limit on the dollar value of the tax credit (unlike most tax credits for efficiency upgrades). There are also state tax credits and incentives for GHPs.

The Department of Energy estimates a GHP for the average-size home would cost about $7,500, but suggests that the initial cost can be repaid in under 10 years by reducing or eliminating heating, cooling and hot water bills.

Geothermal and solar heat systems are not new ideas, but they are becoming more advanced. Also, tax incentives and rising utility bills make these efficient options more attractive.

By Vicki Terwilliger (staff writer vicki-t@citizenstandard.com)
Published: October 31, 2010

Some Schuylkill County homeowners are giving their neighbors something to talk about.

As a partner and installer with Control Alt Energy, Auburn, Andy Wollyung said he’s seen inquiries about solar and alternative energy sources soar among local residents. Often, referral is by word-of-mouth.

“We’re still seeing a growing number of people interested. It’s the talk of the town. People say, ‘I’ve seen this installed,’ and it strikes a big interest in a lot of people’s eyes,” Wollyung said.

Two Barry Township families have had their alternative electricity systems in place and say they’re happy with the investments and savings. Ted and Marie Reinoehl and Mike and Karen Wasilus, all of the Ashland area, shared details about their experiences.

The state’s decision to remove the rate caps on what electric companies can charge is what prompted Mike Wasilus to start looking into alternative energy.

“I was looking to get ahead of the rate cap removal. I contacted Control Alt Energy and things took off from there. We started with the solar/thermal water heat, then the wind turbine and finally the solar panels.”

“Also, the federal and state tax credit and rebate programs played a major role in our decision-making. Without those programs, the projects would not have been good business decisions,” Wasilus said.

Their home is heated and cooled by a heat pump and is entirely electric.

The ground-mounted solar/thermal water heater, a Sunda brand system, was installed in September 2008. It immediately cut 15 to 20 percent from their electric usage, they said.

The Skystream Wind Turbine made by Southwest Windpower was installed in March 2009.

“It has had less of an impact on our electricity savings. I’d say about 10 percent savings,” Wasilus said.

Sharp brand solar photovoltaic PV panels were installed on the rooftop with a Fronius inverter in October 2009.

“They are awesome and have had the biggest impact on our electricity savings. They easily cut 30 to 40 percent from our electric usage. For comparison’s sake, the solar panels have been installed six months less than the wind turbine, yet the solar panels have already surpassed the amount of electricity generated by the wind turbine by 75 percent.”

“Knowing what I know now, I would double the capacity of the solar panel system and bypass putting up the wind turbine,” he said.

Wasilus said he doesn’t regret installing the wind turbine, it just may take a bit longer to recoup his initial investment.

The initial investment cost for all systems, he said, was offset by the federal tax credits offered, at about 30 percent. The solar-panel cost was also offset by the state’s Sunshine program that offered about a 30 percent rebate on the installed cost of the system.

“The payback period is a tough question to answer, because the tax credits and rebates are constantly changing. For me, both solar projects will have a much faster payback than the wind project. I’m looking at about eight years on the payback for the solar projects and probably at least 12 years on the wind project. As far as savings, I would say as a percentage, I’m saving about 60 percent off my electricity bill with these projects. Obviously, for someone who has other forms of heating or cooling, the saving percentage would be much greater,” Wasilus said.

The kilowatt hours generated by the PV panels in almost a year were 4,100 KWH, Wasilus said, and the wind turbine generated 2,100 KWH in a year and a half.

The Reinoehls, meanwhile, had their solar array panels installed in October 2009 by Maximus Solar, Sacramento. There are 33 panels on the south-facing roof of their 3,200-square-foot home.

“We were trying to look into the future,” Ted Reinoehl said. “We figured electric rates would go up and deregulation was happening, and we were getting closer to retirement and were looking for ways to save money down the road.”

Their home is also an electric-run house. They initially installed a geothermal system, with tubing running beneath their yard, when the home was built 19 years ago.

Over the past 11 months, Reinoehl said they’ve saved about $1,200 in electricity costs.

On average, if the sun is out, the solar panels generate about 40 KWH per day, according to Ted Reinoehl. In checking his records, their panels did generate less kilowatts during the winter and more in the spring and summer months. By comparison, there was 397 KWH generated in the month of November, 64 KWH in December, 400 KWH in January and 1,200 KWH in March.

“I’m so glad we did this, and there were incentives to do so.” Marie Reinoehl said. With five adults living in the home, the system provides the electricity needed to heat and cool the home and for daily usage.

“One of the biggest holdbacks is the initial costs, which can make it prohibitive,” said Ted Reinoehl. “I feel confident within a five-year period of time, it’s paid for.”

It’s been the hottest summer on record, from New York to Tokyo. Russia is scorched earth. This year’s global temperatures may surpass those of 1998: If so, that would mean the two hottest years on record have been in the last 13.

The National Academy of Sciences recently published a survey of nearly 1,400 climate researchers worldwide. About 97% believe that we are causing global warming. (Meanwhile, the deniers cling to their peculiar upside-down logic: “You can’t prove for certain that my house is going to catch fire, so fire codes are a total waste of time, and there is no point buying an extinguisher.”)

European Pressphoto Agency
Russians cool off in a fountain in St. Petersburg last month as temperatures there reached 93 degrees.

If you’re worried about the environment, here are 10 “green” moves you can make that also have a payback—they’ll help the earth and your wallet.

1. Stop the energy leaks from your home. Just over a fifth of U.S. energy consumption happens at people’s homes, says the Department of Energy. That costs the average homeowner $2,400 a year. Half of that goes to heating and cooling, much of which is pure waste. Insulate ceilings and walls. Seal cracks and gaps. “Often people have so many small leaks around the home that it’s the equivalent of having a three-foot by three-foot window wide open,” says Kateri Callahan, president of the Washington-based nonprofit Alliance to Save Energy.

2. Change your light bulbs. The typical household has 46, says the Department of Energy. But only five of them are energy-efficient compact fluorescents. These can cut light bills by 75%. Don’t like CFs? Matt Patsky, veteran green investor and the CEO of Trillium Asset Management, says new LEDs are much better still. They cut energy use by 95% and emit a much softer light. They’re more expensive, but prices are coming down pretty quickly.

3. Stop heating an empty house. Or a house when everyone is asleep. Get programmable thermostats. They can cost as little as $50. “They typically pay for themselves in three months,” says ASE’s Ms. Callahan. They can cut your heating and cooling bills by 10%, she says, without any effect on your comfort at all. Turning down the thermostat in winter (and up in summer) a little helps too: Experts say each degree can trim 2%-3% from your heating bill.

4. Rethink your appliances. Replace any old ones with new, energy-efficient models. The older your current fridge or washing machine, the faster the payback. The more efficient models today have an EnergyStar seal from the Department of Energy. They typically use about 30% less power than a model without the seal, experts say (more details at wwww.energystar.gov). As for your TV: The bigger the screen, the more power it’s using. How big do you need? Do you really want to see, say, a life-size Snooki when you’re watching “Jersey Shore”?

5. Stop leaving your computers and home entertainment systems on standby overnight. The screen’s black but they’re still sucking power, needlessly. Power strips make it easier to switch everything off at once, and new smart strips make it easier, for example, to power down the TV while leaving the TiVo connected.

6. Make the most of your green taxpayer incentives. For example, Uncle Sam is offering to pay up to $1,500 of your costs on things like insulation or better-insulated windows, although the program expires at the end of this year. Your state government may provide additional incentives. The best overall guide to these deals is available at DSIRE, the Database of State Incentives for Renewables & Efficiency.

7. Tackle your hot water heater. It’s one of your biggest energy users. Put insulation around the heater and the pipes. And dial down the thermostat. They are often set at 140 degrees. That’s way too high: The Energy Department suggests turning it down to 115 to 120 degrees instead.

(continued below)

8. Drive a more-efficient car. How wasteful are we on the roads? I once watched a young woman drive through the cobbled streets of Boston’s historic North End in a monstrous, gas-guzzling Hummer. She looked sillier than Michael Dukakis in that tank. What are we thinking? Super-efficient hybrids can be pricey, but Jessica Caldwell, director of pricing and analysis at car experts Edmunds, says there are a lot of deals around at the moment that can bring the price down. And you don’t have to go hybrid: Ms. Caldwell notes the small Nissan Versa gets 29 miles to the gallon and only costs $16,000.

9. Get a home energy audit. The price of these has come down. For a few hundred dollars, experts using high-tech gadgetry, infrared scanners and computer models will analyze your home, work out in detail all the ways it’s wasting energy and tell you what you can do to stop it. As the average home uses about $2,400 worth of energy per year, the payback is often impressive. Matt Golden, chief executive of San Francisco-based specialists Recurve, says he often finds he can cut bills by 20% to 40% just by eliminating waste. An audit can also help you rethink your heating and water systems, and identify possible sources of renewable energy, from solar paneling to a geothermal heat pump, that can help the environment and may save you money over time. Check for firms accredited by the trade body, the Building Performance Institute.
(continued below)

Internal Sponsorship:
Just released from GreenEcoClub the DIY Easy-Energy-Audits. This step-by-step guide will show you how to do energy audit on your home like the pros. Easy-Energy-audits

10. Buy an e-book reader. If you read a lot, they are very green. Traditional books, newspapers and magazines aren’t: They do a lot of environmental damage, from cutting down trees to manufacturing and distribution. Emma Ritch, senior research analyst at the CleanTech Group, an environmental consulting firm, has done the numbers. Bottom line: A device like the Kindle has about the same impact on the environment as 23 books, or 280 newspapers, or 177 magazines, or some mixture thereof. So if you’re going to use it to read more than that, you’re helping the environment. By my reckoning, someone who buys a newspaper a day, a magazine a week and three books a month will break even by the fifth month.

Write to Brett Arends at brett.arends@wsj.com

DIY Projects

Your one place to get all the Ongoing Support and Ideas for your Renewable Energy DIY Projects. Enjoy an ongoing source of Green Living Ideas that help Save the Environment while also Saving Money.

Grab A Copy Click here

Have instant access to a library of Green Videos, mp3 Audio Recordings and other Multi-media information. Watch the hands on instructional videos that will help you build your own renewable energy systems.

Weekly Money Saving and Green Living Tips. This section alone will save you well over $27 a month!

Each month we upload a new Renewable Energy DIY Guide (most valued at $49.97) and you pay nothing extra for this! So instead of constantly buying new Energy and Green guides as they are released, you will have instant access and save a lot of money in the process. Also listen to Expert Interviews with some of the top renewable energy and green experts around the world.

Grab A Copy Click here

Have questions? We have answers. GreenEcoClub’s exclusive “Ask The Expert” will allow you to ask all of your renewable energy project questions. In addition there is a comprehensive list of various green and renewable energy resources, online tools and discounted supplies. You’ll save$100’s if not $1,000’s off your renewable energy DIY project with our “Best Prices” list (solar cells, wind turbine generators, green supplies, etc)!

Now there is a Green/Renewable Energy continuity program with your favorite energy guide front-end offers to help you MAKE MORE MONEY! We have taken the top selling energy guides and added a monthly continuity program to them. These are the energy guides you are already selling but with an ongoing monthly payment and commissions paid to you.

Grab A Copy Click here

By Theresa Curry • Contributor • July 25, 2010

Several hours into the second big snowfall in February, Chris Bolgiano went to the basement of her Fulks Run home and saw a digital clock blinking, the way they do when the power goes out.

“That’s the only way we knew that no electricity was coming into our house,” Bolgiano said. The other clocks, the lights, the computers and the kitchen appliances were continuing to provide the Bolgianos with the same level of utility and comfort as they did before the storm piled 18 inches of snow on top of the foot already blanketing their rural community.

It was a landmark of sorts for the couple: Chris, a nature writer and retired JMU librarian, and Ralph, a retired biologist, had installed additional solar panels a few months before. That allowed full power for their daily needs while keeping a system of sealed lead batteries charged. The batteries kicked in as soon as the electricity failed.

“We were without electricity for 36 hours, but we’d only used 25 percent of the battery backup,” Chris said. “And we were living life as usual. If we had been more conservative from the start, I’m sure we could have used much less.”

Meanwhile, Glenn Mingo was keeping an eye on the snow on the solar panels at his home between Spring Hill and Parnassus. Mingo normally fills his power needs from the panels on the roof of his ranch-style home.

“I’m retired, and I think of this as a way of prepaying my energy bills,” he said of his investment. “They’ll go up and my income won’t.”

Mingo and the Bogianos aren’t just in it for the longterm cost savings. They’re committed to lessening the environmental impact of their lives and they like the idea of being independent for security and other reasons.

There are growing numbers of homeowners like them, said Watt Bradshaw, whose 32-year-old Blue Ridge Energy Company specializes in building alternative energy sources such as solar, wood turbine, geothermal and small wind.

“In other countries, (people who install alternate energy sources) get enormous incentives for what they’ve done,” he said. Bradshaw said while total energy independence might not be possible, everyone can take some steps toward reducing energy costs.

If you’re thinking of moving in that direction, some guidelines from Bradshaw, Bolgiano and Mingo

Reduce your consumption

Over the course of about 10 years, Mingo installed compact fluorescent and LED bulbs in his most used lights, increased the insulation in his attic, and made storm windows to reduce heat and cooling loss.

((continued below)

“As I needed to replace appliances, I chose those that were more energy efficient and completely got rid of my garbage disposal,” he said.

To make dishwashing more efficient, he installed a foot-operated turn-on for his sink. He put in a root cellar for winter storage and buys apples and other good keepers in bulk as winter approaches.

The Bolgianos have used similar strategies since the construction of their 1,900-square-foot home 25 years ago. They heat with wood and don’t use a dishwasher or clothes dryer. By paying careful attention to the siting and construction of their basement, greenhouse and decks, they take advantage of natural light and heat in the winter and shade in the summer. Like Mingo, they have appropriate storage that’s naturally cool. The greenhouse allows them to have a salad garden all year, reducing both trips to the grocery and the need for refrigeration.

Contributing to the grid

“Going off the grid” was once a slogan of the energy-independence movement, but most people choose to stay connected, even though the power companies don’t offer much of a reward to their small contributors.

“In some countries, everyone who generates excess electricity and feeds it into the system is well-rewarded,” Bradshaw said. “It’s a tremendous mistake to put it all in the hands of the power companies with their 30 percent administrative markup.”

Mingo said he uses the conventional grid as a kind of storage system. “I contribute my excess power in the spring, fall and summer, and draw it out in the winter, kind of like a bank.” Bolgiano said her power company, Shenandoah Valley Electric Co-op, hasn’t quite figured out the bookkeeping aspects of the transactions.

“I have to really study my bill to see where they’ve credited me and how much over my consumption I’ve given them,” she said. She said the sealed lead batteries that allow her to store energy are expensive and not likely to become widely used for energy storage.

Bolgiano likes the idea of an eventual network of energy-contributing homeowners for security reasons. If the power supply isn’t all centered in one place, she reasons, a natural disaster or hostile attack is less likely to cause widespread devastation.

“I think it’s part of the American character,” she said, “to want to be independent and also to contribute to the common good.”

Start with a solar hot water

The most practical advice anyone can give about producing power is to install a solar hot water heating system, says Bradshaw.

(continued below)

“People actually use more hot water in the summer because of more laundry and showers, and that’s when you can get 100 percent of it from solar panels,” he said.

In its simplest form, solar panels pre-heat the water in a special tank before it flows into the regular hot water heater, which then adjusts its temperature for laundry and bathing.

According to the U.S. Department of Energy, 1.5 million homeowners have installed solar hot water heaters, with a nearly 100 percent satisfaction rate. With hot water comprising 13 to 25 percent of household energy use, it’s a step that can be cost-effective, especially with state and federal rebates, and if you’re able to do some of the work yourself, as Mingo did.

“Plan to save the initial cost in three to five years,”

JEREMY BOREN

The Associated Press

PITTSBURGH – When Michael Merck’s remodeling crew is finished, sunlight that once streamed through dusty cracks in a vacant East Liberty home will strike a solar panel array capable of generating enough energy to support a family of five.

At least, that’s the goal the owner of West Penn Energy Solutions set for himself in a novel bid to transform a deteriorating 100-year-old shell of a house into a Zero Energy Home , a “green” living space that produces as much energy as its occupants consume in a year.

“We want to show that we can take this great example of Pittsburgh housing stock and convert it into something as energy efficient or more energy efficient than what people are building new,” said Merck, 32, of Regent Square.

Work began in March on the North St. Clair Street home and could be finished by year’s end.

Merck hopes to sell the five-bedroom house for about $265,000. He’ll list it for sale soon before it’s finished in case a buyer wants his company to customize it.

Since minimal air will be able to enter or escape, Merck will use special wall paints and wood stains that emit little or no toxic gas. Rain barrels outside will catch water to irrigate the lawn and garden. Solar-thermal panels mounted atop awnings over two master bedroom windows will block some sunlight, yet catch enough to heat a water tank in the basement equipped with a 400-gallon reservoir. Sun-heated water will flow to showers, sinks and the wood-floored home’s radiators.

Merck said the annual cost for electrical service and heating the home will be less than $300.

One drawback: No air conditioning, but a ventilation system will bring in cool, fresh air and exhaust stale air. A single window-mounted air conditioner could cool the entire house, if the owner installed one, he said.

“This really is Michael’s dream and his initiative to do a net-zero energy house, and it’s one of our core principles, so we’re happy to be working with him,” said Nate Cunningham, director real estate for the nonprofit East Liberty Development Inc.

ELDI owns the house, but it has worked out a unique business deal with Merck and with two other developers: father-and-son-team Albert and Chas Suter and, separately, Thomas Bencho, who are renovating homes on North Euclid Avenue and Beatty Street, respectively.

The nonprofit purchased the vacant homes typically in economically depressed or crime-prone areas , and gave the small developers an option to renovate and sell them for a profit. Cunningham said ELDI is slowing creating a market for higher-priced homes with the goal of creating a mixed-income neighborhood of homeowners and renters.

“What we liked about them was they’re not making us pay anything up front,” Chas Suter said. “When we go to close with a buyer is when we pay them for the house and we pay a finder’s fee.”

The Suters are the first to nearly complete renovations to a house on North Euclid. Theirs is not a net zero-energy house. They preserved a stick-and-ball staircase, pine wood floors and created a master suite. The asking price is $239,900.

“It allows them to continue their mission of bringing homeownership back to East Liberty, and it allows contractors with limited resources to renovate a property … and sell it,” said Coldwell Banker real estate agent Holly Sisk, who is working with the Suters.

Cunningham said a real estate market analysis shows there are few who own homes worth between $150,000 and $300,000 in East Liberty. ELDI is changing that.

Three of six homes on North Euclid that ELDI helped to build are sold or under contract. Each falls in or above that price range. People want to live near the improving Penn Avenue corridor, he said, which offers easy access to Whole Foods, Border’s, Trader Joe’s, a planned Target, and other retail and commercial gems.

ELDI has nine more homes it could offer to small developers.

“We are getting the pioneers now, but we are seeing a pick up in momentum from home buyers,” Cunningham said.

,,,

Information from: Pittsburgh Tribune-Review, http://pghtrib.com

The Forest Preserve District of DuPage County recently completed the installation of five solar-thermal hot-water systems.

Sun-heated water is flowing at public restrooms at three forest preserves, Springbrook Prairie in Naperville, Hidden Lake in Downers Grove and Spring Creek Reservoir in Bloomingdale.

Solar-thermal systems are also at work at the headquarters building at Danada Forest Preserve in Wheaton and the structural maintenance facility at Blackwell Forest Preserve in West Chicago.

The solar-thermal systems work in conjunction with conventional natural gas or electric hot-water heaters, which were already in use. Solar panels mounted on the buildings’ roofs preheat water using energy from the sun, reducing or at times eliminating the use of natural gas or electricity. Through reduced energy costs, the district’s return on investment is about eight to 10 years.

“Even on cloudy days and through cold weather in winter, solar energy can produce hot water,” said Jason Berger of the district’s structural maintenance department. “The systems are designed to last at least 20 years with little to no maintenance, so the long-term savings of both utility costs and conventional energy resources will be beneficial.”

A grant from the Illinois Clean Energy Community Foundation paid for 25 percent of the costs, and a rebate from the Illinois Department of Commerce and Economic Opportunity’s Solar and Wind Energy Rebate Program funded 30 percent.

(Editors note: These rebates can be yours too. See our solar hot water and solar hot air projects)

Friday, June 18, 2010 11:56 AM

The Solar Energy Industries Association (SEIA) released its 2009 US Solar Industry Year in Review, finding 2009 to be another year of strong growth despite the economic recession. A combination of policies, new business models, and declining prices drove expansion in 2009; and growth is expected to continue during 2010.

Overall US solar electric capacity, including both photovoltaic and concentrating solar power installations, increased by 37% in 2009. According to the SEIA, this was driven primarily by strong demand in the residential and utility-scale markets, state and federal policy advances and declining technology prices. As a result, total solar industry revenue reached $4 billion, a 36% increase on that reported in 2008.

According to the SEIA’s findings, the solar industry contributed to the overall economy by adding 17,000 new jobs from coast to coast. The solar industry today employs 46,000 US workers and supports an additional 33,000 jobs in other sectors.

According to SEIA’s report, photovoltaic installations (grid-connected) grew by 38% and solar water heating rose by 10%, although solar pool heating growth was 10% less than in 2008, reflecting the decline in construction and housing markets.

The concentrating solar power (CSP) sector had three new plants come online in 2009, taking cumulative CSP capacity in the US to 432 MW, with a development pipeline totaling more than 10,000 MW.

Residential grid-tied PV solar installations showed particularly strong growth, doubling from 78 MW to 156 MW, while non-residential grid-tied PV solar installations grew 2% less than in 2008. The utility market saw notable growth, with utilities tripling their rate of grid-tied PV capacity additions from 22 MW to 66 MW. The total utility-scale pipeline (across all solar technologies) reached 17 GW, enough to power 3.4 million homes.

The U.S. solar industry is continuing to regain momentum in both the residential and commercial market, with a number of companies reporting gains overseas and in the domestic market. One recent example comes from a Reuters report on Norcross, GA-based Suniva, which has reportedly sold out its products through 2010 and is planning to triple its exports in the next five years. The wire service added that the company is also expected to build a 400-megawatt plant in Saginaw County, Michigan, with an eye on generating electricity there by 2011. Americans are going to see more and more solar energy generated in the next several years, with dozens of projects under construction or being planned throughout the Southwest. Other parts of the country that do not get as steady a supply of sunlight are also increasingly embarking on their own solar projects. Some states are even home to projects that will re-invent old landfills as solar energy plants. Elsewhere, a number of other companies have showed that they have serious potential for long-term growth with or without the various tax credits that have been provided under the government stimulus bill.

A 30%+ CAGR in solar installations is expected over the coming three years as module prices continue to fall and new markets open up; however, growth will remain choppy during periods when subsidy schemes are adjusted in key markets. Frequent supply/demand imbalances should continue in the industry; but decline in average selling prices will be moderate. Companies that are best positioned will be cost leaders and have strong balance sheet to weather continued boom and bust cycles.

Solar is relevant in subsidized markets with attractive feed-in tariffs and where regulations mandate renewable energy, especially when there is a specific solar carve out. Low-cost, established technologies that are bankable are favourable. Investors often under appreciate the importance of bankability, a critical success factor for each company. Vertical integration into downstream installation and energy markets is balance sheet-intensive, but provides a valuable level of visibility into future demand for large companies. Development pipelines can be expensive and include many early-stage projects with low likelihood of completion — diversification across a large portfolio is a major advantage.

The biggest incremental growth will be in the US utility-scale market, with an expected 2.7 GW of installations in 2012, up from 500 MW in 2009.

Solar has a strong future for three reasons:
The installed base is miniscule at 0.15% of global electricity generation. Getting to 5% of global electricity supply by 2020 would require between 500 and 750 GW of new installations (assuming capacity factors range from 15-20%).

Dedicated subsidies: In many countries, solar benefits from dedicated subsidies and renewable energy requirements.

Solar is coincident with peak demand, relatively predictable, and can be installed as distributed generation in any scale, from 1 KW residential systems to 250 MW utility-scale installations — enabling competition with traditional generation and with end-user electricity rates.

The true economics of solar are driven by government policies and subsidies and by companies’ ability to drive costs down. Long term, as the cost of solar becomes more competitive with traditional sources of electricity generation, solar will be positively correlated to natural gas prices, as solar’s direct competitor is a natural gas peaking plant.