The Economics of Solar Power

Although a number of studies have shown a net positive impact of solar energy, particularly in communities dedicated to large-scale development of solar power, the most basic reality of solar power is that it is viable only in sunshine rich climates, particularly the Southwest and Pacific coastal areas. Even with government subsidies, solar is not now, nor will it likely ever be, viable in cloudy, rainy climates. However, if the price of solar decreases enough, this may change, although the vehicle of change will be investment capital, and when solar lags so far behind other alternative energy sources, investment capital also lags behind.

The following sections provide you with info on the economical impacts of large-scale solar power use, including the benefits as well as the economical challenges solar power faces.

In 2005, the U.S. economy consumed 100 quadrillion Btus of energy, of which less than 1 percent was solar. The impact that solar makes on the entire renewable (alternative) energy industry is very small. Furthermore the consumption of all energy sources in the last ten years has increased 25 percent, but solar production has only increased 17 percent, so solar is not even keeping up with the economy at large. This is due solely to the peculiar economics of solar, not the available technologies.

Getting Started With Solar

Getting Started With Solar

Do we really want the one thing that gives us its resources unconditionally to suffer even more than it is suffering now? Nature, is a part of our being from the earliest human days. We respect Nature and it gives us its bounty, but in the recent past greedy money hungry corporations have made us all so destructive, so wasteful.

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