Solar Power for Your Home: Solar energy production up despite bad economy

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Solar power production up despite poor economy Article:Solar power production up despite poor economy:/c/a/2010/10/12/BUTN1FRN2L.DTLArticle:Solar power production up despite poor economy:/c/a/2010/10/12/BUTN1FRN2L.DTL advertisement|your ad here SFGateHome of the San Francisco Chronicle

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Solar power production up despite poor economy David R. Baker, Chronicle Staff Writer

San Francisco Chronicle October 13, 2010 04:00 AM Copyright San Francisco Chronicle. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Wednesday, October 13, 2010

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Vince Maggiora / The Chronicle

A recent study shows the United States solar energy market continuing to grow at a brisk pace despite the country's economic slump.

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This year's stagnant economy hasn't stopped the spread of solar power.

The United States installed enough solar panels during the first six months of 2010 to generate up to 339 megawatts of electricity and will soon surpass last year's record of 435 megawatts, according to a study released Tuesday by a solar industry trade group.

As usual, more panels have been installed this year in California - enough to generate 120 megawatts - than in any other state.

By the standards of the electricity industry, the power furnished by all those panels isn't much.

A single mid-size power plant burning fossil fuels, for comparison, generates around 500 megawatts, enough electricity to supply roughly 375,000 typical homes.

But the study by the Solar Energy Industries Association and GTM Research shows the United States solar market growing at a brisk pace despite the country's economic slump. The amount of solar generating capacity installed year by year has quadrupled since 2006, driven by government incentives, consumer demand and a plunge in prices.

"Looking forward, the question isn't whether the U.S. (photovoltaic) market will grow, but how fast it will grow," said Shayle Kann, managing director of solar research for GTM.

California has typically been the solar industry's most important market within the United States. State rebates helped stoke consumer demand for solar panels, and a state law will soon force California's large utility companies to get 20 percent of their electricity from renewable sources.

Other states, however, are following California's lead.

In 2009, only seven states installed enough solar panels to generate 10 megawatts or more, according to the association. By the end of this year, 15 states should pass that mark.

"This is very crucial, because ultimately, the growth of the U.S. solar market depends on having a true, 50-state market," Kann said.

A steep drop in worldwide prices for solar modules also helped fuel the market's growth, even as it put pressure on solar companies. A separate report released Tuesday by a division of the California Public Utilities Commission found that the price for solar systems in California has dropped 18.8 percent since peaking at $10.35 per watt in October 2008. A typical home solar system generates 2 to 4 kilowatts.

However, the commission's report also found that the price of large photovoltaic installations used by the state's utilities has risen. One possible explanation offered by the report: The California law that requires utilities to increase their use of renewable power has created a seller's market, allowing solar companies to charge more than they would have otherwise.

E-mail David R. Baker at dbaker@sfchronicle.com.

This article appeared on page D - 1 of the San Francisco Chronicle

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Related Topics: Solar power, Electricity generation, United States, Fossil fuel, Renewable energy, Power station, Public utility, Photovoltaics,&32Trade association

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