According to this month’s edition of State Legislatures, despite the high-profile bankruptcies of a few U.S. solar companies this year, by most measures the solar market is healthy and growing. Utilities across the nation—in response to government incentives, mandates, their own goals and customer interest—are increasing the amount of solar electricity in their portfolios. The solar industry’s sales increased 67%, from $3.6 billion in 2009 to $6 billion in 2010, and the rapid growth continued through the first two quarters of 2011. Although solar contributes less than 1% of the nation’s electricity needs, nearly 9% of all new electrical generation capacity installed this year is expected to be solar.
Electricity costs from new utility-scale solar projects built in 2011—including the federal government subsidy—were about 11 to 12 cents a kilowatt hour and are expected to fall to about 8 cents by the end of 2012, which will make them cost competitive with natural gas in some regions. (Without federal subsidies, utility scale solar would cost about 15 to 17 cents a kilowatt hour.) In comparison, electricity from new coal and gas plants is 7 to 12 cents, and 7 to 10 cents respectively. Wind is 4 to 8 cents a kilowatt hour. Rooftop-mounted solar costs about 13 to 19 cents a kilowatt hour.
The article also discusses federal and state policies on solar and the recent bankruptcy of Solyndra, a solar panel maker in California.
