But there is another form of residential solar power that is both affordable and efficient:  solar thermal panels for solar hot water.  Just like PV panels, solar thermal panels require exposure to sunlight.

Solar hot water via solar thermal panels

Even at lower ambient temperatures, sunlight that falls on thermal panels can heat domestic water via a solar hot water system.  In other words, you don’t have to live in California or Florida to generate hot water with solar energy!  People throughout northern regions of the U.S. and in European countries like Germany enjoy free hot water from their solar panels.

There are several different methods for heating water with a solar thermal system, some of which are specifically designed for areas that experience frost and lower temperatures.  The savings from solar hot water can really add up, too.  By replacing a gas or electric hot water tank with a system using solar thermal panels, a household can save $500-1000 each year.

Because solar thermal panels are less expensive than PV panels, the return on investment is shorter, as well.  At current energy prices, expect an ROI of 8-10 years.  However, if utility rates further increase, a homeowner with solar hot water is protected against such spikes and may achieve payback for the system in 5-7 years, or less.

Increase in solar power installations in 2012

Since 2010, renewable energy has been growing at an impressive pace – overall about 31%, representing an increase from $188 billion in revenue to $246 billion in just 2 years.

Just by itself, solar power installations have grown to a total of more than 26.5 gigawatts of capacity worldwide.   While solar panel manufacturers are not necessarily reaping the benefits of this growth in the industry (due to falling costs), property owners have witnessed more than 50% increase in solar installations.

The United States still has progress to make in this regard, however.  Despite being a global leader, the country accounted for less than 10% of the solar work market for 2011.  Germany continues to be a leader in solar power.

Part of the reason for the increase in solar power installations recently is attributable to government incentives and tax rebates.  In addition, financing tools such as solar leases and property assessed clean energy loans are popular now, but could wane with a shift in local policies.

Notwithstanding the potentially fickle nature of solar power installations,  Clean Edge believes that global revenue for solar could reach $130.5 billion in less than 10 years, by 2021.

This is in contrast to utility scale solar power, usually in the form of solar panel farms or solar thermal power plants at which large amounts of solar electricity is generated, then transferred to customers along the grid.

Distributed Generation Solar Power

When we use solar power at its source, this method is more efficient and less expensive.  Consider that centralized electricity generation at power plants requires large scale investment of land and money, as well as the cost of tapping into the grid to deliver the clean power to end users.  Homeowners may not even experience any reduction in their power bills when their utility generates solar power, as well as using fossil-fuel power generation.  Utilities are increasingly being required to generate a portion of their power from renewable resources, which may cost more at first, and such costs may be passed onto consumers.  Finally, there is a measure of lost solar electricity when its transported across the grid, rather than used at its source.

When you go with residential solar panels, you are in control of your system (can increase or decrease its size) and 100% of the solar electricity generated is yours.  Moreover, if you are eligible for net metering, you can even get a credit on your utility bill for excess power generated by your PV panels.  Here are some additional reasons that distributed solar is a wise choice:

• Rooftop solar reduces minimizes the losses in transmission of utility scale solar power.
• Less influence of utility company’s tier pricing for peak demands and building types
• Fewer upfront costs for construction of distributed generation solar (little or no need for bare land, permitting process is usually more streamlined, and connection to the grid (if applicable) is a simpler process

In short, using solar power at its source can reduce the costs and delay of grid-based solar energy, and increase the efficiency of a solar panel system.

Now that you know about distributed generation, perhaps its time to consider installing your own solar panels!

1.  Tap into Solar Incentives

One of my favorite resources is the Database of State Incentives for Renewables & Efficiency (DSIRE), which lists state rebates and solar power incentive programs, as well as information on federal solar incentives.  The site is funded by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy.  There, you can find information on state, local, utility and federal incentive programs that can help you cut the cost of residential solar panel installations by as much as 60-80% off the retail cost.

Thinking of making a switch to solar power?

2.  Determine how Much Grid-Based Electricity You Can Offset with Solar

Here is another tool from the U.S. government that can help you switch to solar power.  Part of your analysis will be to determine how much electricity you use at home, and then how much you can offset with solar.  The website of the U.S. Energy Information Administration (EIA) includes statistics about the amount of electricity the average American home demands.  In addition, check out the Energy Department‘s information about considerations to make before going solar.

3.  Find the Best Solar Panel Manufacturers

This may be surprising, but you can find the top solar manufacturers in the U.S. on Wikipedia.  The site includes a list, put together based on an annual report by Photon Magazine.  Additional information on annual solar manufacturer rankings is found at Solar Buzz.

4.  Log onto Solar Chat

These days, you can find a chat room on just about any topic!  Why not connect with other people that are thinking about going solar, or who have already made the switch?  Try the online forum at Solar Panel Talk.  You can find people to chat with on DIY solar panels, going off-grid, solar panel leases and purchasing/installing conventional residential solar systems.

5.  Use a Solar Price Calculator

Online calculators can help you determine how many solar panels you will need for your energy demands and what a system will cost.  There are a number of solar price calculators available and you can find links to many of them at CalFinder.

Solar Panel Efficiency

Over the past 5 years, the price of solar panels has dropped dramatically while efficiency of solar arrays has increased significantly.

Yet, it appears that the renewable energy revolution continues to make life better and cleaner for many of us!  The University of Texas at Austin announced this month that one of its solar researchers has discovered a method to further double solar panel efficiency up to 60%!

Solar panel efficiency can be summarized as follows:  The term refers to the amount of solar energy that is converted to usable electricity after hitting a solar panel.  It does not need to be a bright, sunny day.  All you need is UV (ultraviolet) sunlight, filtered through clouds or even precipitation.  According to a recent article:

An issue with regular photovoltaic panels is that much of the energy delivered by sunlight results in the conversion of “hot” electrons, which are too high-energy to be converted to electricity in silicon and are instead lost as heat. University of Texas Chemistry professor Xiaoyang Zhu and his team discovered that an organic plastic semiconductor could double the number of electrons harvested out of one photon of sunlight.

Solar panel efficiency is currently about 30% for silicon photovoltaic (PV) solar cells.  But solar technology indicates that this figure can at least double, to reach 66% efficiency.

The importance of this discovery is the potential of reaching grid parity – the point at which the cost of purchasing solar electricity is less than the price of fossil-fuel based power.

Reasons to Switch to Solar Power

Have you been thinking about installing a residential solar system?  Well, now is the time!  The cost of solar panels has dropped more than 40% this decade, and more and more people have changed to solar.

If you are still on the fence, consider these top reasons to switch to solar power:

1.  Reduce Your Electric Bill

Did you know that the average household in America spends over $1,400 each year on electricity?  The year 2010 marked the fifth consecutive year that utility rates have risen.  That means that homeowners are paying 20% more for electricity than they did only a half decade a ago.  Its time to keep more of that hard-earned cash for yourself, and protect against continued rising rates by switching to solar power.  In the first year following solar panel installation, most property owners realize 40% or more in electric bill savings.  These savings stay “locked in,” despite what happens to the economy and future electricity costs.

2. Take Advantage of Sunny Skies

Sunshine helps, but even brighter skies can generate ample solar electricity.  Generally speaking, solar panels are most efficient when exposed to direct sunlight.  However, ambient UV light is sufficient for solar panels to generate ample clean electricity.  If you are eligible for net metering, you can reduce your power bill to zero and even get paid for extra solar power generated during peak periods.

3. Take Advantage of Incentives

Currently, solar rebates and incentives offer  substantial savings on solar installation costs. The U.S. federal program can save you up to 30% off the retail cost to install a photovolatic (PV) solar power system. Most incentive programs have an expiration date, however.  In today’s political climate, continuation of many programs are uncertain.

4. Combat Rising Electricity Demands

Did you know that in the next 25 years, electricity demands will nearly double, according to a 2005 Energy Information Administration report.  Even though we are taking more and more steps to save energy, our consumption is increasing with the size of our homes, number of electronic devices and efforts to stay cool and comfortable year-round via HVAC.  By switching to solar power, you can off-set increasing demands, as well as cut down on energy demands through the insulating effects of installing solar panels on your roof.

5. Save the Environment

It is hard to continue to explain away the bizarre weather experienced around the world over the past decade.  Global climate change is real and its time to step up efforts to reduce CO2 emissions.  Switching to solar power can significantly help.

Wait another 10-15 years, and it might be too late to reverse the trend.

Solar charging canopies for electric vehicles

With more and more companies producing electric cars, and consumers looking to buy emissions-free vehicles that can save them significant money at the pump, is it any surprise that solar charging canopies are gaining in prominence?

Using solar power to charge electric vehicles (EVs) is becoming more common-place both at residential and commercial sites.  General Motors has pursuing more eco-friendly electric vehicles including as the Chevrolet Volt. Now, new solar charging canopies, including the Tracking Solar T have been installed at GM’s Company Vehicle Operations site in Warren, Michigan.

Envision Solar has developed the Tracking Solar Tree, which generates additional solar power by following the course of the sun as it crosses the sky each day.  The hybrid multi-axis tracking design increases renewable energy production by 25% compared to traditional solar panels. The Solar Tree can produce up to 30,000 kilowatt hours over a year, which is enough solar energy to charge six electric vehicles per day.

Rob Threlkeld, GM global manager of renewable energy said:

“We are constantly looking for places where we can add a renewable focus. This solar tree is an ideal addition because not only does it provide a space to charge our electric vehicles, but it’s another step in our journey toward cleaner energy use.”

Desmond Wheatley, President and CEO of Envision Solar also stated:

“Our Solar Tree structures can be installed in any location while our unique tracking solution allows us to always get the most from the sun. As such they are the perfect visible embodiment of GM and its dealerships commitment to the environment and the future of electric and other highly efficient vehicles. We look forward to installing many more of our iconic tracking Solar Tree structures for GM in the coming months.”

When it comes to electric vehicles, what do you think about these solar charging canopies?

Solar rebates and solar tax incentives

The exact measure of the benefits of solar rebates and tax incentives is a subject of debate.  Some question whether the government should allow tax revenues to be trimmed with rebates, given the current economic climate.  Others believe that the free market should be allowed to operate, and if people cannot afford solar power, they shouldn’t make the switch.

Personally, I am of the mind that solar rebates and tax incentives are important to encourage property owners to forgo cheaper sources of electricity (coal) in favor of renewable energy.  As grid parity – the point at which solar is as inexpensive as coal - comes closer and closer, the need for incentives will diminish.

Since the federal tax credit became available in 2006, solar panel installations have increased 800%.  Some of the growth is attributed to falling solar panel costs, but many agree that incentive programs have allowed many people to successfully switch to solar power.

State and local solar incentives vary, depending on where you live.  But the federal tax credit incentive covers as much as 30% of the cost of solar photovoltaic (PV) panels is available across the nation.  Under pressure to reduce the national debt, lawmakers have set the solar tax credit system to expire at the end of 2016.

The solar tax incentives could end even earlier than 2016, if Republicans make significant gains in the upcoming 2012 elections.

Either way, solar rebates and tax incentives will not last forever.  At least not until more lawmakers recognize the importance of continuing to encourage growth in the solar industry.  In the meantime, if you are considering installing solar, now may be the time to do so!

Occupy rooftops on Community Solar Day

Let’s raise awareness of the positive impact of solar power.  Band together with your neighbors and friends on November 20, 2011 for the first Community Solar Day: Occupy Rooftops, organized by Solar Mosaic, 350.org, Vote Solar, and others.

The day is dedicating to gathering people around the world in support of solar energy.  Participants will “occupy rooftops” by gathering at a building that would benefit from rooftop solar panels, both to save energy and create local green jobs.

Community Solar Day will work as follows:

1.  Locate a building in your hometown that would benefit from rooftop solar panels.

2.  Gather a group of friends, neighbors and others in your community to come out and support solar power

3.  Visit the building on which solar panels would be ideal and take a photograph in front of  your dream community solar project.

4.  Post your photograph on meetup.com/Community-Solar.

Community Solar Day is intended to be more than just an opportunity to post photographs.  We need to convince property owners and government leaders that solar power and other renewable energy projects benefit our community by saving money, increasing energy security and breaking free from our reliance on finite fossil fuels.

If you are interested in participating in Community Solar Day, visit Vote Solar for a primer on community solar and a policy toolkit. Learn more and sign up here.

Solar panel installations on schools

The report was produced under the DOE’s SunShot initiative to support development of Solar Master Plans for three California public school districts: Oakland, Berkeley, and West Contra Costa Unified School Districts.  According to the Department of Energy’s website:

The SunShot Initiative is a collaborative national effort to reduce the cost of solar energy by 75%, making it cost competitive with other forms of energy by the end of the decade. The new study supports DOE’s SunShot Initiative goal of addressing critical barriers, such as the availability of financing, to accelerate the integration of solar energy technologies across the United States. Installing solar energy systems on public schools can help school districts save money on their utility bills, reduce carbon emissions, support job creation, and provide students with opportunities to learn about clean energy.

At a time when school districts are looking to save energy in order to save money, and perhaps teach students a lesson on renewable energy, solar installations for schools makes great sense:

The DOE report compares and contrasts the two primary options for financing solar: (1) direct ownership, whereby the school takes out a loan to purchase solar panels, and (2) solar power purchase agreements or solar leasing, under which a third party owns, operates and maintains the solar panels and sells solar electricity generated by the array to the school at a cost less than typical grid-based power.  The third-party finance model also includes Energy Saving Performance Contracts, in which cost savings from energy efficiency improvements help to pay for the solar installation.

The analysis in the report is intended to help administrators select the best option for financing solar installations for schools.

For more information, see the DOE Progress Alert, the complete report, and the SunShot Initiative website.