What will happen to the solar industry in the months ahead?
Recently, some pundits have predicted that a slowing economy will have a negative impact on the solar industry. I’m not sure I agree! First of all, green job growth is one bright spot in the economic downturn. Contractors and other laborers have still been able to find new jobs in this segment of the construction industry, after layoffs in other areas.
Secondly, we have new leadership in Washington D.C. President Obama has made it a priority to continue investing in infrastructure to stimulate the economy, and to create 5 million new green jobs. Add the fact that many politicians and other leaders are working very hard to get us away from foreign oil dependency. We can only drill so much here in America. Most people agree that we have waited too long to invest in renewable energy, like solar and wind. People are ready now. We are alarmed by the footage of melting glaciers, and will not idly sit by any longer.
Many businesses and individuals will still install solar panels in a down economy
So, what exactly is going on? What will happen over the next year or two if (and hopefully when) the economy starts to recover?
I read a report yesterday that claimed “Solar Industry Growth [is] Dimming.” It stated that:
“While the field continues to grow, the rate of progress may be slowing as the credit crunch and technological difficulties blunt the effect of government subsidies, industry sources say.”
Even with this in mind, I drove past Sunlight Solar today and noted a new advertisement: “Incentives and subsidies will cover 80% of your cost!” It almost seems too good to be true.
And why wouldn’t we want to invest in our future this way? We should spend tax dollars to encourage people to go green – get away from dirty, coal-based electricity and convert to solar energy. Homeowners and businesses that have installed solar panels have experienced dramatic drops in their energy bills. Do I even need to say that this is good for the economy? These systems have virtually zero greenhouse gas emissions, which can help everyone sleep better at night…. even if still worrying about how to make payroll or pay the mortgage.
Did I mention the fact that solar panels increase the value of your property? Who isn’t looking for a boost there?
Despite all the benefits of going solar, the fact does remain that banks are not freely lending as they have done in the past. Clean Edge – a market research firm – noted that solar installers are hiring at a slower pace because of a “wait and see attitude” regarding government incentives.
“Until we get clarity from the Obama administration and the credit markets loosen up, it’s going to be real hard for some of these solar outfits.”
I say that this is even more reason for us to strongly support solar incentives on a federal level. But we can also pressure states to do the same.
Its time to do the right thing – spend tax dollars where they can be best utilized and provide the greatest return. The solar industry should continue to grow at this critical time. The world – and its economy – are counting on things turning around soon.
I think green is quite a stretch right now. I wrote a piece on my site about green stocks that would be good buys right now but I still think green has a lot of headwind against it. In recessions, the naturally defensive economy sticks with what they know as a whole. I think Obama will help to bring it back to some degree.
You’re 100% right when you say that tax dollars should be invested in the future. The global pollution problem which has degenerated the environment is a serious concern. We started destroying it decades ago and now we are debating whether we will spend tax dollars to repair it. The government should make available tax dollars to homeowners to encourage use of solar in homes. To me this is the right direction that makes environmental sense. I have written a number of practical articles about the solar industry. Visit me at: http//www.justsolarhome.blogspot.com.